PitchBook noted that Q3 valuations step down but valuations for growth stage companies, deal sizes, and exits see respite. The research report from PitchBook also mentioned that European venture valuations remained fairly elevated in Q3 2025, however, some signs of moderation appear to be emerging.
Although average YTD valuations are still trending above the past year’s levels, quarterly figures show “a slight step-down—especially in Series E+ deals—indicating that the market may be entering a more rational phase.”
The report further revealed that AI now continues to dominate a lot of the deal flow, particularly “at Series A-B, but the trajectory of valuations is uncertain, with down rounds and high-profile setbacks in the sector highlighting the risks of inflated expectations.”
Outside of AI, Fintech saw the strongest valuation “gains at the seed stage, whilst life sciences and SaaS also posted solid growth at Series A-B.”
Liquidity remains constrained, with IPOs scarce and “valuation gaps between private and public markets widening.”
Notably, median exit values have improved, “buoyed by stronger acquisition activity, but exit volumes remain thin.”
Overall, the PitchBook report stated that Q3 points to a selective and “maturing investment environment, where sector bifurcation is increasingly evident.”
Within the UK and Ireland, median valuations in Q3 “increased across all stages apart from pre-seed/seed, which slightly declined 1.1% to €4.7 million.”
The smallest gains were in Series A-B, which sat “at €31.5 million, broadly flat from €29.2 million in 2024.”
The extensive research report added that valuations in Series C+ companies onwards “increased notably, with the Series C-D median valuation at €279.2 million, and double that YoY.”
Regarding median deal value, Series A-B saw “large gains, up 13.8% to €12.7 million in Q3.”
Yet once again, gains were reportedly greater in later stages but “counts were also thinner, where Series C-D median deal size reached €55 million from €42.1 million in 2024.”
In the France & Benelux region, valuations increased “broadly across all series, with Series C-D showing the greatest uptick, albeit across lower data counts.”
Median valuations for Series A-B companies sat at “€27.1 million, from €25.3 million in 2024.”
The report also stated that pre-seed/seed also increased “12.6% versus 2024, at €5 million.”
The report further revealed that for Series C-D, median “valuations in the region now sit at €204.2 million.”
The PitchBook update further stated that “regarding deal sizes, medians in the pre-seed/seed stage saw the largest increase in the ecosystem, sitting at €1.8 million and up from €1.3 million in 2024.”
As stated in the research report, deal sizes in Series A-B also “increased by a somewhat similar amount YoY, now sitting at €15 million.”
The PitchBook report added that Series C-D median deal sizes “now sit at €53.7 million, 24.1% higher than the 2024 median size.”
