European funding rounds are growing in size, but fewer companies are closing them

The median value for European funding rounds has shown a consistent increase over the last three years, while the total number of deals has decreased. This phenomenon is observed across multiple funding stages, indicating a significant shift in the venture capital landscape.

Notably, Series A and Series B rounds have experienced substantial growth in their median sizes. For instance, Series B rounds saw a median increase of over 30% in 2023. Despite these larger individual rounds, the overall deal count has declined in various sectors and stages.

This trend presents challenges, particularly for early-stage companies that traditionally relied on smaller, more frequent funding rounds. Investors appear to be concentrating on larger, potentially higher-return opportunities, which may leave smaller ventures struggling to secure capital.

Furthermore, the data suggests a recalibration of requirements for different funding phases. The volume of Series C rounds has decreased significantly, and even seed rounds, while increasing in average euro value, have shrunk proportionally. This could signal that investors are demanding stronger proof points before committing funds.