Global venture capital market stabilizes – investors in Germany remain selective

• Global investment volume rises: Venture capital investments reach US$138.1 billion in the fourth quarter of 2025, with 7,981 transactions. 
• More capital, fewer deals: Despite rising volumes, the number of deals remains below the historical average – investors are focusing on larger, more mature financing rounds.
• Focus on Europe and Germany: Europe records $21.1 billion in venture capital in the fourth quarter, Germany $2.4 billion, making it one of the leading VC markets in the region.
• Artificial intelligence dominates: In Germany, too, large financing rounds are mainly attributable to AI and deep tech companies. 
• Exit markets are picking up: The global exit value rose from $153.5 billion to $178.0 billion in the fourth quarter, while fundraising remained subdued. 

Berlin, February 10, 2026

The global venture capital market gained significant momentum at the end of 2025. Global investments rose from $125.6 billion in the third quarter to $138.1 billion in the fourth quarter of 2025. With this increase, 2025 closes at the third-highest annual level ever recorded. At the same time, the number of transactions fell from 9,434 to 7,981, underscoring the continued selective approach of investors—with a clear focus on technology-driven business models. This is shown by KPMGs Venture Pulse Q4 2025. 

Europe recorded US$21.1 billion in venture capital investments in the fourth quarter of 2025, demonstrating resilience despite a challenging market environment. Germany attracted US$2.4 billion during the same period and remains one of the most active VC locations in Europe. Investments were concentrated in a few large-volume financing rounds, particularly in technology-driven sectors. The total number of deals in Europe declined from 2,005 to 1,652 transactions compared to the previous quarter. 

 Artificial intelligence remained the most important driver in the venture capital market in the fourth quarter of 2025. Eight US AI companies each raised more than $1 billion during the quarter. AI financing was also among the largest transactions in Europe and Germany, including a $300 million round for German AI company Black Forest Labs.

At the same time, the exit market regained momentum. The global exit value rose from $153.5 billion in the third quarter to $178.0 billion in the fourth quarter of 2025. Fundraising, on the other hand, remained subdued, keeping competitive pressure on start-ups high.