European Venture Sentiment Index Q2 2025 (Venionaire Investment GmbH)

Summary

• The perception of the current fundraising environment declined by 28.5% QoQ and the current valuation dropped by 12.6%.p.3
• Current deal flow quality improved by a solid 13.3% QoQ, one of the few positive components of the index.p.3
• Late-stage investments reached USD 17.1b, representing 45% of total funding, with 188 deals.p.4
• Early-stage investments stood at USD 7.5b, which is 19.7% of total funding, across 148 deals.p.4
• The three leading ecosystems recorded 492 deals, a 2.2% decline from Q1 2025, while their combined share of deal activity rose to 53.5%.p.4
• Over 4000 investors from 8 European countries were invited to take part in the survey.p.5

Key insights

1. The perception of the current fundraising environment fell by 28.5% QoQ, the sharpest decline among the index components.p.3
2. Investor activity decreased by 3.4% QoQ alongside a 1.2% drop in competition for deals.p.3
3. Current deal flow quality improved by 13.3% QoQ.p.3
4. Late-stage investments reached USD 17.1b, or 45% of total funding, with an average deal size of USD 91.0m.p.4
5. The three leading ecosystems increased their combined share of total deal activity to 53.5%, up 8.0% QoQ.p.4
6. Regional funding growth quarter over quarter ranged from about 3× in the UK and Germany to more than 6x in Spain and Turkey.p.4
7. The US introduced duties of 25-50% on selected goods alongside a universal 10% levy in early April.p.3
8. The ECB foresees headline HICP at 2.0% in 2025, dipping to 1.6% in 2026.p.2