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.