Invest Europe: Venture capital reaches second-highest level on record

Invest Europe has published its latest report, Transaction Value: Private Capital Analysis, examining private capital investment across Europe in 2025. The
report shows that venture capital recorded its second-highest transaction value
on record, growth capital recovered after three consecutive years of decline,
and buyout activity remained broadly stable. 

Across the market, European private capital
proved resilient despite continued macroeconomic and geopolitical uncertainty,
with transaction value remaining above €260 billion for the second consecutive year. The findings also point to
continued investment concentration in technology and healthcare, reflecting
sustained investor interest in innovation-led sectors.

The
report analyses investment activity by stage, region, sector and transaction
size, while also examining equity ratios, co-investment trends and financing
structures. Together, the findings provide an overview of how private capital
is being deployed across European markets and the sectors and regions
attracting the highest levels of investment.

Overall
private capital market

Invest
Europe’s analysis shows that European private capital remained resilient in
2025, with total transaction value reaching €260.9 billion across 8,681 deals, only
slightly below 2024 in deal count while remaining above the five-year average
in value.

Buyouts
continued to dominate the market, accounting for €189 billion, or roughly 72 per cent of
total transaction value, while healthcare and biotech reached a record €51.9 billion in investments,
reinforcing the sector’s growing importance. In contrast, consumer goods and
services declined to €28.1 billion, their lowest level in a decade.

Venture
capital

Venture
capital delivered its second-highest annual transaction value on record,
reaching €35.3
billion, despite a slight decline in the number of deals. Larger financings
became more prominent, with transactions above €30 million accounting for a growing
share of invested capital.

ICT
remained the leading sector, attracting €17.2 billion, while the UK & Ireland continued to lead regional
investment activity and Southern Europe recorded the strongest annual growth.

Growth
capital

Growth
capital rebounded after three consecutive years of decline, with transaction
value increasing 12 per cent year-on-year to €33.4 billion. The recovery was driven primarily by larger deals exceeding
€30
million, while ICT and biotech and healthcare remained the most active sectors.

Regionally,
the UK & Ireland recovered to match France & Benelux as the largest
markets for growth-stage investment.

Buyouts

Buyout
activity remained broadly stable, supported by consistently strong financing
structures. The report notes that average equity contributions remained above
60 per cent, reflecting continued investor confidence and relatively conservative
capital structures despite a challenging macroeconomic environment.

With €189 billion invested in buyouts during
the year, the segment continued to account for the largest share of European
private capital activity, underlining the market’s resilience across investment
stages.

For more
detailed findings and methodology, see Invest Europe’s Transaction Value: Private Capital Analysis
report.