European venture dealmaking in 2025 is a story of extremes. While average deal sizes are climbing, overall activity is cooling, and capital is clustering around a handful of outsized AI rounds.

European venture entered the summer under mixed signals. After a strong Q1, dealmaking slowed noticeably in Q2, reflecting global volatility and investor caution. But beneath the surface, the market is not collapsing : it is compressing.

Startups are often built on speed, instinct, and hustle. In the early stages, founders juggle operations, hiring, product, and finance : sometimes all in the same morning.

In this short memo, we break down what’s changing in 2026, who’s impacted, and how to stay one step ahead : whether you’re a founder, investor, or employee with stock options.

Something is clear, Venture Capital feedback often falls short. We’ve supported dozens of founders through their fundraising journeys, from pre-seed rounds to late-stage negotiations with hundred of VCs and global growth funds.

Let’s be honest, raising capital as a startup is no walk in the park. The process looks deceptively simple: preparation, investor outreach, initial diligence, term sheet negotiation, NDA, final due diligence, and deal closing.

Let’s face it: no startup founder dreams of negotiating a pre-money valuation with barely six months of runway left. Yet, the clock ticks, the burn rate doesn’t lie, and raising capital becomes inevitable. That’s where convertible loans come in : the Swiss army knife of early-stage fundraising in Belgium.

In a market that continues to navigate geopolitical tensions, stubborn inflation, and ongoing caution, European venture capital held its ground. Not with fanfare, but with focus.

Raising funds is a crucial step in a start-up’s growth journey, but it comes with its share of complexities: one of the most significant being equity dilution.