“2024 venture capital (VC) deal value lagged despite macroeconomic recovery and gains in venture growth,” said data firm Pitchbook upon the publication of its annual on 23 January 2025. “Value over volume was the flavour of deal activity in 2024. Valuations improved, but declines in deal count were more pronounced as the move to quality and emphasis on profitability continued. Despite deal activity’s inflection past trough levels, capital availability remained tight as the time between rounds continued to widen. Clarity on interest rates supported the recovery in valuations, but growth prospects remained mixed, contributing to a tone of cautious optimism throughout the year.”
In Europe overall, venture capital deal value continued the downward trajectory seen over the last few years, dropping from €61.6bn in 2023 to €56.7bn in 2024.
Luxembourg, on the other hand, saw an increase in venture capital deal value, according to Pitchbook data. After €1.2bn in 2021, VC deal value decreased a bit to €1.13bn in 2022 and then dropped to €178m in 2023. In 2024, venture capital deal value increased to €219m. That’s a year-on-year increase of 23%.
The decline in deal count, as Pitchbook noted, was “more pronounced” in 2024. Deal count in Europe dropped to an estimated 9,600 last year, down from 11,408 in 2023.
Deal count in Luxembourg, on the other hand was fairly stable: 30 in 2024 compared to 32 in 2023.
Most of the Luxembourg VC deals in 2024 were in the €1m to €5m range, said Pitchbook’s data.
And when it comes to sector, nearly half of deals in Luxembourg (14) were in the software sector.
Artificial intelligence was, as expected, a “prevalent” sector, said Pitchbook. Six of the top 10 deals in Europe in 2024 were from AI companies, noted the data firm. The software sector saw the largest share of VC deals in Europe, with 3,258 deals in 2024, followed by commercial products & services (1,600) and consumer goods & services (1,047). In addition, the “growth in life sciences investment nearly matched the rate of uptick in AI,” said Pitchbook.
Find the full Pitchbook report .