During the recent Slush conference in Helsinki, discussions around the European startup scene revealed a gap between optimism and actual investment data. Although the market hasn’t fully bounced back from the 2022–2023 global VC funding downturn, signs of recovery are visible. Notably, Klarna’s IPO and increased interest from local investors in AI startups suggest a positive shift. By the end of Q3 2025, European investors had committed €43.7 billion across 7,743 deals, with projections indicating the annual total could reach €62.1 billion. However, this figure is unlikely to surpass the previous years’ totals.
European venture firms have raised €8.3 billion, potentially marking the lowest annual fundraising in a decade. Despite this, American investors are increasingly involved in European deals, with their participation rising since 2023. European AI companies, such as Sweden’s Lovable and France’s Mistral, are attracting significant American investment, highlighting global interest in the region’s tech sector. Klarna’s public debut in September has also boosted confidence in European market exits.
According to Viktor Englsson from EQT, European founders are inspired by the global success of companies like Spotify and Revolut, driving a more ambitious approach. EQT plans to invest $250 billion in Europe over the next five years, following a $120 billion investment in the past five years. Despite current challenges, the involvement of American investors and the achievements of European companies are setting the stage for a gradual recovery in the startup sector.
