Exploring the Pulse of Europe's VC Landscape: Mega-Rounds Make a Comeback, PE Carveouts Lose Momentum, and Early-Stage M&A Ignites a Stellar Startups Exit

In the realm of European Venture Capital, it’s a tale of resilience, resurgence, and a hint of rigidity. Against the backdrop of a generally slower pace in the VC markets, the silver lining has emerged in the form of mega-rounds. Yes, those high-value, adrenaline-pumping funding rounds that shake the foundation of the startup ecosystem. Despite a decline in the total number and value of rounds, deals exceeding €100 million have seen an uptick. As of Q2 2025, the European VC scene has witnessed 53 such mega-rounds, amassing an impressive €10.7 billion, a 13.4% increase in deal value and a 27.7% rise in count compared to 2024. Talk about making a comeback!

But that’s not all. Over in the PE (Private Equity) landscape, a different narrative unfolds. PE carveouts, which churned out significant figures last year, seem to be losing momentum this year. As of now, carveouts hold about 11% of European PE deals value, a significant drop from last year’s surge to nearly a fifth of all transactions. However, with carveouts forming 9.8% of the PE deals, the appetite for corporate divestiture appears to be alive, though PE action might be in broader decline.

On an exciting note, US startup exits totalled a whopping $67.7 billion across 394 deals in the second quarter. This figure takes a leap from 330 transactions that amounted to $52.4 billion in Q1, pointing towards a promising trajectory for early-stage M&A activity.

The vibrant European VC landscape continues to surge, narrate a tale of trends, transitions, and transformations.