PitchBook report – European Venture Report
Description
Key learnings:
- AI and Machine Learning (ML) lead in venture capital activity: AI & ML attracted €6.3 billion in deal value during the first half of 2024, becoming the second-most-active vertical in Europe after Software as a Service (SaaS). The number of deals in AI has surged, especially in countries like the UK and France, although the latter still trails the UK in terms of deal count and value.
- Growth of venture debt: Venture debt in Europe reached a record high in 2024, with a year-to-date (YTD) value of €17.6 billion. This significant growth demonstrates the increasing role of debt as a financing tool for startups, especially in the venture growth stage, where 65.4% of venture debt deals were concentrated.
- IPO market recovery is slow: The IPO market is showing signs of recovery, but it remains cautious. While there were some high-profile exits like Puig's IPO, most exits in 2024 were through acquisitions, with 85.6% of exit value coming from acquisitions, highlighting a still-fragile exit environment despite improving public listing activity.
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