European VC Market Slowly Recovering

[johnblockbuster]

Despite the hype at Slush 2025, European venture capital hasn’t fully bounced back from the global reset of 2022-2023. Investors poured €43.7B into 7,743 deals through Q3, roughly on pace with prior years but still below U.S. deal volume. Fundraising by European VC firms is the weak spot, projected at a decade-low €8.3B for the year. Yet signs of recovery exist: U.S. investors are returning, and interest in AI startups is growing. Lower European valuations offer a more attractive entry point for global investors, suggesting momentum could be building for 2026.

[etfs]

ai startups r def the hype rn, makes sense that us investors are sniffin around again