The excitement for the European startup market was hard to ignore at the annual Slush conference in Helsinki last month. But the actual data on the state of the region’s venture market shows a different reality.
The upshot: The European market has not recovered from the global venture capital reset that occurred in 2022 and 2023. But there is evidence it is on the cusp of a turnaround, including Klarna’s recent exit and the region’s homegrown AI startups garnering attention from local investors and beyond.
Investors poured €43.7 billion ($52.3 billion) into European startups in 2025 across 7,743 deals through the third quarter, according to PitchBook data. That means the yearly total is on pace to match — not exceed — the €62.1 billion invested in 2024 and €62.3 billion in 2023.
In comparison, U.S. venture deal volume in 2025 had already surpassed 2022, 2023, and 2024 by the end of the third quarter, according to PitchBook data.
Deal recovery isn’t Europe’s biggest problem, though — it’s VC firm fundraising. Through Q3 2025, European VC firms raised a mere €8.3 billion ($9.7 billion), which puts Europe on track for its lowest overall fundraising yearly total in a decade.
“Fundraising, LP to GP, is definitely the weakest area within Europe,” Navina Rajan, a senior analyst at PitchBook, told TechCrunch. “We’re on track for around 50% to 60% decline in the first nine months of this year. A lot of that is made up now by emerging managers versus experienced firms, and the mega funds that closed last year haven’t repeated this year.”
While Rajan doesn’t share the same fever that oozed out of attendees at Slush, she pointed to a few positive data points that suggest the European market is turning around.
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For one, the participation of U.S. investors in European startup deals is back on the rise. Rajan said that figure dipped to a low in 2023 when U.S.-based VCs participated in just 19% of European venture deals. It has been steadily on the rise since, she said.
“They seem pretty optimistic on the European market,” Rajan said. “Just from an entry point of view, because you think about valuations, especially within AI tech and in the U.S., it’s just impossible to get in now, whereas, if you’re in Europe and your multiples are lower, and you’re new as an investor, it just provides a better entry point for perhaps similar tech.”
Swedish vibe-coding startup Lovable is one example of this shift. Vibe-coding companies have raised a lot of VC money in the United States. But U.S. investors also clearly love Lovable. The company just announced a new $330 million Series B round that was both led by and participated in by a slew of U.S.-based VCs, including Salesforce Ventures, CapitalG, and Menlo Ventures, among others.
French AI research lab Mistral has seen similar love from U.S.-based firms. Mistral landed a €1.7 billion Series C round in September that included Andreessen Horowitz, Nvidia, and Lightspeed.
Klarna’s recent exit also suggests a turnaround is underway.
Swedish fintech giant Klarna went public in September after raising $6.2 billion across two decades in the private market. That exit likely recycled some capital back to European LPs or gave them confidence in a changing exit environment.
For Victor Englesson, a partner at Swedish EQT, the recent European success stories, like Klarna, have started to change how founders in Europe approach building their companies.
“Ambitious founders have seen what great looks like in companies like Spotify, Klarna, Revolut and are now starting companies with that type of ambition,” Englesson told TechCrunch. They’re not starting companies with like, I want to win in Europe, or I want to win in Germany. They start companies with a mindset that I want to win globally. I don’t think we have seen that to the same extent before.”
That mindset has EQT, and others, bullish on Europe.
“For EQT, we’ve invested $120 billion in Europe [over the] last five years,” Englesson said. “We’re going to invest $250 billion [over the] next five years in Europe. So we are extremely committed to Europe.”
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![‘Cyberpunk: Edgerunners’ Creator’s New Manga Series Is a Love Letter to ‘Inception’ and Soulsborne Games
In the time before Cyberpunk: Edgerunners 2‘s imminent arrival on Netflix this fall, I’ve been living it up, rewatching the anime and re-reading manga from the folks responsible for its first season being Crunchyroll’s 2023 Anime of the Year.
While I’ve already waxed poetic about writer Bartosz Sztybor‘s Rebecca-centric prequel manga showcasing Night City as having plenty more stories to tell, season one creator Rafał Jaki has spun the block off the momentum of being one of Manga Plus’ first Western manga creators post-Edgerunners with an inventive new manga series that’s giving Inception meets Elden Ring. Coming off the heels of his refreshingly imaginative sci-fi series No\Name, in which folks’ powers were derived from the meanings of their given names, Jaki and artist Machine Gamu‘s newest series, Brain Alive—which he announced on his official X/Twitter account with a Google Drive link to read its first chapter for free—looks poised to carry that energy forward with a dark fantasy premise geared toward cinephiles and gamers alike. [embed]https://www.youtube.com/watch?v=01qvd0J-6Fc[/embed] In patented Edgerunners heart-shattering fashion, Brain Alive opens with a father named Daniel awakening from a car crash to the news that his wife didn’t survive and his son is in a coma. To keep his son company, Daniel reads him new volumes of the dark fantasy novel that inspired the Soulsborne video games they used to play together as a family. After falling asleep by his son’s bedside, Daniel finds himself stark naked inside a dungeon. Turns out, his dreams run on a kind of Kamen Rider ZETZ rule where he enters his son’s dreamscape influenced by his mind’s imaginings of their favorite video game series. But things are far from fun and games.
© Rafał Jaki/Machine Gamu Fortunately, if Daniel dies in the dream, he doesn’t die in real life. Any progress he makes in the dream follows a roguelike-meets-Soulsborne rule, with bonfire checkpoints featuring the dream-eating yokai, Baku, as a save state statue, and he returns a bit stronger as he retraces his steps in his son’s dreams. Unfortunately, Daniel can’t honk shoo-mimimi into his son’s dreams willy-nilly. He’s got a limited number of times he can go into his son’s dreams to make as much progress as he can and inch closer to saving his son’s life. Meaning, runs can’t be redone by closing his eyes and diving into his dreams multiple times a night. Think Persona 3 dungeon runs where, instead of planning dates and going to school in the interim of making doubly sure if you want to get your shit rocked in Tartarus, Daniel dedicates every waking moment to “git gud” at Soulsborne games to save his son’s life. Buddy can’t catch a break.
© Rafał Jaki/Machine Gamu As Soulsborne enemies are wont to do, everything from skeleton warriors and giant yokai to poisonous snakes wants to run the dozens with Daniel for keeps, leaving the weary father with nothing but his Soulsbourne techniques, like perfect dodges, attacking enemy weak points, and real-life sword lessons, to keep himself alive. It also doesn’t hurt that Daniel’s got the boon of a fire sabre with the spirit of his dead wife guiding him through his son’s lucid dark fantasy dreams. If the dead wife of it all isn’t the most Christopher Nolan-ism of all time, I don’t know what is. © Rafał Jaki/Machine Gamu © Rafał Jaki/Machine Gamu As is evident from its first chapter, Jaki owes a lot to both anime and the video games he’s played and helped bring into fruition in the stories he crafts. “I create in order to give back even a small fraction of what I have received from loving the work of other creators,” Jaki told IGN. “My hope is to provide someone else with that same moment of awe that I have experienced myself, offering a glimpse into another person’s mind and sharing thoughts and feelings.”
© Rafał Jaki/Machine Gamu As a wary fan of the diminishing returns of isekai-adjacent storytelling, what Jaki and Machine Gamu have put forward in Brain Alive‘s first chapter feels far from the derogatory sameness I’ve encountered from manga and anime that take gamified RPG rules for the sake of power fantasy wish-fulfillment while handwaving their many icky implications. It probably helps that Jaki is no stranger to expansive video game scripts, as the writer of Dark Horse’s The Witcher 3: Ronin comic and The Witcher: Old World board game. Like Former Destiny writer Frank Barbiere and Swamp Thing: Twin Branches artist Morgan Beem’s Image Comics series The Author Immortal (which I also strongly recommend folks check out), Brain Alive is a story with stakes and teeth I can’t wait to see pan out. You can read the first chapter of Brain Alive here ahead of its English release coming later this year, and Jaki’s first-ever manga series, No\Name, on MANGA Plus. Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who. #Cyberpunk #Edgerunners #Creators #Manga #Series #Love #Letter #Inception #Soulsborne #GamesCyberpunk: Edgerunners,Manga,Rafal Jaki ‘Cyberpunk: Edgerunners’ Creator’s New Manga Series Is a Love Letter to ‘Inception’ and Soulsborne Games
In the time before Cyberpunk: Edgerunners 2‘s imminent arrival on Netflix this fall, I’ve been living it up, rewatching the anime and re-reading manga from the folks responsible for its first season being Crunchyroll’s 2023 Anime of the Year.
While I’ve already waxed poetic about writer Bartosz Sztybor‘s Rebecca-centric prequel manga showcasing Night City as having plenty more stories to tell, season one creator Rafał Jaki has spun the block off the momentum of being one of Manga Plus’ first Western manga creators post-Edgerunners with an inventive new manga series that’s giving Inception meets Elden Ring. Coming off the heels of his refreshingly imaginative sci-fi series No\Name, in which folks’ powers were derived from the meanings of their given names, Jaki and artist Machine Gamu‘s newest series, Brain Alive—which he announced on his official X/Twitter account with a Google Drive link to read its first chapter for free—looks poised to carry that energy forward with a dark fantasy premise geared toward cinephiles and gamers alike. [embed]https://www.youtube.com/watch?v=01qvd0J-6Fc[/embed] In patented Edgerunners heart-shattering fashion, Brain Alive opens with a father named Daniel awakening from a car crash to the news that his wife didn’t survive and his son is in a coma. To keep his son company, Daniel reads him new volumes of the dark fantasy novel that inspired the Soulsborne video games they used to play together as a family. After falling asleep by his son’s bedside, Daniel finds himself stark naked inside a dungeon. Turns out, his dreams run on a kind of Kamen Rider ZETZ rule where he enters his son’s dreamscape influenced by his mind’s imaginings of their favorite video game series. But things are far from fun and games.
© Rafał Jaki/Machine Gamu Fortunately, if Daniel dies in the dream, he doesn’t die in real life. Any progress he makes in the dream follows a roguelike-meets-Soulsborne rule, with bonfire checkpoints featuring the dream-eating yokai, Baku, as a save state statue, and he returns a bit stronger as he retraces his steps in his son’s dreams. Unfortunately, Daniel can’t honk shoo-mimimi into his son’s dreams willy-nilly. He’s got a limited number of times he can go into his son’s dreams to make as much progress as he can and inch closer to saving his son’s life. Meaning, runs can’t be redone by closing his eyes and diving into his dreams multiple times a night. Think Persona 3 dungeon runs where, instead of planning dates and going to school in the interim of making doubly sure if you want to get your shit rocked in Tartarus, Daniel dedicates every waking moment to “git gud” at Soulsborne games to save his son’s life. Buddy can’t catch a break.
© Rafał Jaki/Machine Gamu As Soulsborne enemies are wont to do, everything from skeleton warriors and giant yokai to poisonous snakes wants to run the dozens with Daniel for keeps, leaving the weary father with nothing but his Soulsbourne techniques, like perfect dodges, attacking enemy weak points, and real-life sword lessons, to keep himself alive. It also doesn’t hurt that Daniel’s got the boon of a fire sabre with the spirit of his dead wife guiding him through his son’s lucid dark fantasy dreams. If the dead wife of it all isn’t the most Christopher Nolan-ism of all time, I don’t know what is. © Rafał Jaki/Machine Gamu © Rafał Jaki/Machine Gamu As is evident from its first chapter, Jaki owes a lot to both anime and the video games he’s played and helped bring into fruition in the stories he crafts. “I create in order to give back even a small fraction of what I have received from loving the work of other creators,” Jaki told IGN. “My hope is to provide someone else with that same moment of awe that I have experienced myself, offering a glimpse into another person’s mind and sharing thoughts and feelings.”
© Rafał Jaki/Machine Gamu As a wary fan of the diminishing returns of isekai-adjacent storytelling, what Jaki and Machine Gamu have put forward in Brain Alive‘s first chapter feels far from the derogatory sameness I’ve encountered from manga and anime that take gamified RPG rules for the sake of power fantasy wish-fulfillment while handwaving their many icky implications. It probably helps that Jaki is no stranger to expansive video game scripts, as the writer of Dark Horse’s The Witcher 3: Ronin comic and The Witcher: Old World board game. Like Former Destiny writer Frank Barbiere and Swamp Thing: Twin Branches artist Morgan Beem’s Image Comics series The Author Immortal (which I also strongly recommend folks check out), Brain Alive is a story with stakes and teeth I can’t wait to see pan out. You can read the first chapter of Brain Alive here ahead of its English release coming later this year, and Jaki’s first-ever manga series, No\Name, on MANGA Plus. Want more io9 news? Check out when to expect the latest Marvel, Star Wars, and Star Trek releases, what’s next for the DC Universe on film and TV, and everything you need to know about the future of Doctor Who. #Cyberpunk #Edgerunners #Creators #Manga #Series #Love #Letter #Inception #Soulsborne #GamesCyberpunk: Edgerunners,Manga,Rafal Jaki](https://gizmodo.com/app/uploads/2026/08/Brain-Alive-4.jpg)




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