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| Medtech is moving again: A record $16 billion in VC funding in 2025 and Medline's historic IPO underscore that today's market rewards mature companies with proven products. With M&A and IPO activity picking up, there's real opportunity for companies that can clear an increasingly high bar. Access the report now |
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| Fintech VC valuations race ahead in Europe |
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By Leah Hodgson, Deputy Editor, European Private Markets
Despite AI dominating the headlines with mega-rounds at astronomical valuations, fintech startups continue to command higher median VC valuations in Europe.
The median pre-money valuation for fintech startups reached €12.4 million (about $14.7 million) last year, according to PitchBook’s 2025 Annual European VC Valuations Report. AI startups trail by 29%, while SaaS and life sciences are 26% and 21% below fintech, respectively.
The gap between fintech and AI is most pronounced at the earlier stages. The median valuation for pre-seed and seed fintech startups was €7.8 million—exactly €2 million more than for AI. In Series A-B rounds, fintech’s median valuation of €56.2 million far exceeded AI’s of €40.1 million. |
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The gap suggests that investors may be pricing in risk more aggressively for AI startups than for other sectors, such as fintech, even though terms sheets are signed more quickly and include fewer economic and governance protections.
Even at the early stages, fintech business models are well established, with clear comparables. Meanwhile, AI startups often build in an environment of rapidly changing technology, where long-term differentiation can be harder to assess early on.
Deal volume also plays a role in the valuation differences. Last year, there were three times as many VC deals for Europe’s AI startups as there were in fintech, broadening the mix of funded startups. As investors seek greater exposure to AI, these startups are raising capital more easily, whereas in fintech the bar remains higher for investment. Investors’ flight to quality in fintech pushed the median higher.
Still, this doesn’t mean that AI is losing momentum. Valuations for startups in the category are rising much faster year over year. The median overall for AI grew 21.6% from 2024, compared with 6% for fintech.
Whether AI valuations catch up with fintech will depend on whether the market corrects or funding continues to accelerate, as it has over the last few years. If funding for AI becomes tighter, investors could become more selective, focusing on startups with greater defensibility and, possibly, larger valuations. |
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• Dipping into endowments: Federal funding cuts, declining enrollment and more costly financial aid packages are pushing colleges to reach deeper into their reserves. Find out more
• 100-plus charts on the US deal market: PE is leaning into dividend recaps despite a rise in exits, the outlook for private debt is dimming, and non-AI startups can't catch a break. Download our Quantitative Perspectives report
• CVC Capital Partners has committed $1.1 billion to M&G Investments’ 2025 PE secondary fund, acquiring a portfolio of PE stakes, primarily in North American mid-market buyout funds. Read more |
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| 'Fusion bulls' defy VC conventions |
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| (Chloe Ladwig/PitchBook News) |
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By Rosie Bradbury, Senior Venture Capital Reporter
Nuclear fusion has captured Silicon Valley's imagination, even as investments in the technology break every venture capital norm.
A cohort of investors—a combination of ultra-wealthy individuals and deep-pocketed firms—enthusiastic about the promise of fusion energy is pouring more capital into its commercialization than ever. And that's despite the fact that it's still several scientific discoveries away from being a realistic option for the energy grid.
"There are some fusion bulls out there that have built up a position, some funds that have been in multiple fusion companies," said Leo Banchik, a partner at Voyager Ventures who leads its climate strategy.
Inertia, a fusion energy startup co-founded by Twilio founder Jeff Lawson, announced last week a $450 million Series A led by Bessemer Venture Partners. In the last 12 months, 43 fusion energy startups have raised a total of $3.7 billion in venture capital, per PitchBook data—funding at a level unheard of for scientifically unproven technology.
"Nobody's demonstrated the [fusion] engine yet, so it's a bit like putting the cart before the horse," said Ryan McBride, a professor at the University of Michigan's nuclear engineering department.
By tapping into billionaires' checkbooks, fusion startups can access capital that will stay the course even if the technology isn't de-risked for years to come.
And that may well turn out to be the case. Some nuclear scientists have expressed doubts that Helion would be able to deliver on its promise of fusion power plants by 2028. Its competitor, Commonwealth Fusion Systems, has projected to bring electricity to the grid from its fusion plant in the early 2030s.
"I wish them well," said Mike Campbell, co-director of the University of California, San Diego's Fusion Engineering Institute. "It's an enormous challenge." |
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Smart reads that caught our eye.
• PE firms aren't the only ones paying for data centers—middle-class Americans are too. Higher electricity, transportation and food costs are putting residents in highly concentrated data center areas in a pinch. [Fortune]
• The US edge in attracting and exporting top tech talent may be fading as innovation ecosystems abroad increasingly thrive on homegrown founders. [Financial Times]
• Waymo is offering $11.25 to close open vehicle doors. In a partnership with DoorDash, drivers on the app can get paid to help Waymo vehicles that are stuck with open doors. [Bloomberg] |
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