The global venture capital volume remained stable in the second quarter of 2025 at around 75 billion US dollars. At the same time, the number of completed financing rounds fell to around 8,000 - the lowest level since 2016. The general restraint on the VC market therefore remains. Among other things, this is due to various market uncertainties such as the ongoing geopolitical conflicts and the political realignment of the USA.
Sectoral trends and developments in Germany
Globally, the focus was on investments in health tech, AI applications as well as energy and biotech innovations. Mega deals remained a rarity compared to previous quarters - with a few exceptions in the USA, India and Japan. In contrast, early-stage and seed financing dominated the German market. Large-volume rounds remained the exception. Investment decisions are increasingly being made on the basis of real business figures, product maturity and clear growth strategies.
Florian Merkel
Director, Tax
KPMG AG Wirtschaftsprüfungsgesellschaft
Selected figures for the second quarter of 2025 at a glance:
- VC funds invested around 74.7 billion US dollars worldwide - an almost unchanged level compared to the previous quarter. However, the number of transactions fell to around 8,000 deals - the lowest global level since 2016.
- In Europe, the investment volume remained at a moderate level with a continued focus on early-stage financing and selective business models in the areas of digital health, infrastructure and industrial AI. Large-volume financing rounds remained rare.
- In Germany, investor interest was increasingly focused on deep tech, biotech and clean energy innovations. The more visible activities included seed and Series A rounds in the fields of molecular diagnostics, life sciences and industrial automation.
- HealthTech, biotech and GenAI are among the most active investment fields globally. In the biotech sector, several financing rounds in the mid-triple-digit million range were concluded worldwide, often with a focus on AI-supported drug development.
- Expectations of return on investment (ROI) are rising: Investors are increasingly evaluating new investments in terms of rapid scalability and economic resilience - especially in capital-intensive areas such as ClimateTech and DeepTech.
Conclusion and outlook
Looking ahead to the second half of the year, many investors expect market dynamics to remain selective. Accordingly, topics such as capital discipline, sustainability and realistic valuations will be particularly important in the future. At the same time, interest in alternative forms of financing, buyouts and strategic cooperations is growing.
You can download the latest Venture Pulse Report with the global and regional venture capital trends for the second quarter now.
