February 2025
VENTURE CAPITAL REPORT
VENTURE CAPITAL REPORT
The report analyzes the VC market in the Americas and Europe, focusing on growth- and late-stage companies. It includes statistics on deals, capital raised, valuations, funding round sizes,
and descriptions of new unicorns.
SUMMARY
Monthly Americas and Europe
VC Market Report
Mar 17, 2025
VC Market Report
Mar 17, 2025
Deal Count & Total Capital Invested
In February 2025, the number of deals completed by VC-backed companies with a valuation of $100M or more decreased by 28% compared to January (113 deals) and amounted to 81 deals; year-over-year, the number of deals decreased by 16%.
Deal count in 2024 remained moderate, below the 2021 peak, as rates continue to remain high despite the initiated rate reduction cycle.
The drop in overall deal count was driven by decreased activity in the $100-250M segment.
Deal count in 2024 remained moderate, below the 2021 peak, as rates continue to remain high despite the initiated rate reduction cycle.
The drop in overall deal count was driven by decreased activity in the $100-250M segment.
Deal structure by valuation segments, February 2025
During 2023-2024, Series B accounted for the largest share of deals, but its share is gradually declining, while the share of later stages (Series C+) is gradually increasing, which may indicate a market recovery for more mature companies.
In total, the late-stage segment accounted for 41% of the total number of deals in February 2025.
In total, the late-stage segment accounted for 41% of the total number of deals in February 2025.
Fact
Total capital invested in venture-backed companies worth over $100M in February was $7.2B,
down 21% or $1.9B from January ($9.1B), and up 2% year-over-year.
down 21% or $1.9B from January ($9.1B), and up 2% year-over-year.
The dynamics of venture investment volumes in 2023-2024 reflect the influence of global macroeconomic conditions, including the effect of high interest rates; in 2024, a gradual market recovery is observed, associated with improving investor sentiment, adaptation to new financing conditions, as well as the rate-cutting cycle launched by the Federal Reserve in September.
In February 2025, the Fed kept the interest rate at 4.50% after cutting it by 0.25% (25 bps) in December 2024.
In 2025, we expect the Fed to maintain its interest rate at current levels with the possibility of further downward adjustments, which could stimulate increased activity in the VC market.
In February 2025, the Fed kept the interest rate at 4.50% after cutting it by 0.25% (25 bps) in December 2024.
In 2025, we expect the Fed to maintain its interest rate at current levels with the possibility of further downward adjustments, which could stimulate increased activity in the VC market.
Invested capital ($B) structure by valuation segments, February 2024
Invested capital and deal count for VC companies valued at $100M+ and Fed Funds Rate, 2021-2025
- In February 2025, a total of $9.1B was raised in Series B+ rounds, with $3.3B coming from Series B and $3.4B from Series C.
- In 2024-2025, the volume of investments in the growth and late stages shows a steady increase compared to 2023.
- If the current trend continues, 2025 could be even more active for the growth and late stages, especially with the improving macroeconomic environment.
Median Round Size & Post-Money Valuation
Median round size by valuation segments, 2021-2025, $M
Early stages show stable dynamics in the median investment round sizes, while later stages demonstrate high volatility due to the effect of individual large deals.
The median round size in February 2025 for companies valued at $1B+ was $250M (+32% MoM), while for the $100-250M, $250-500M and $500-$1B segments, it reached $27M (-7% MoM), $50M (-33% MoM) and $79M (+8% MoM), respectively.
The median round size in February 2025 for companies valued at $1B+ was $250M (+32% MoM), while for the $100-250M, $250-500M and $500-$1B segments, it reached $27M (-7% MoM), $50M (-33% MoM) and $79M (+8% MoM), respectively.
The trend of longer time intervals between rounds indicates that investors remain selective in their investments.
The extension of investment intervals is particularly notable for companies valued up to $500M; in February, the $100-250M and $250-500M segments saw an 18-month and 12-month cycle, respectively.
At the same time, unicorns and companies with valuations of $500M-1B are raising money faster as investors bet on assets with higher financial strength; in February, the median time between rounds in the $500M-1B and $1B+ segments was approximately equal at 12 months.
The extension of investment intervals is particularly notable for companies valued up to $500M; in February, the $100-250M and $250-500M segments saw an 18-month and 12-month cycle, respectively.
At the same time, unicorns and companies with valuations of $500M-1B are raising money faster as investors bet on assets with higher financial strength; in February, the median time between rounds in the $500M-1B and $1B+ segments was approximately equal at 12 months.
Median time between investment rounds in the 1B+ valuation segment, 2021-2025, in months
Median post-money valuation by valuation group, 2021-2025, $M
- $1B+ companies show the most significant volatility in post-money valuation; however, in 2024-2025, there is a trend toward an increase in the median valuation of unicorns ($1B+).
- In February, the median post-money valuation in the $1B+ segment amounted to $2.25B (+5% MoM), while in the $100-250M, $250-500M and $500-$1B segments, it reached $0.15B (+0% MoM), $0.33B (-5% MoM) and $0.62B (-7% MoM), respectively.
Fact
In February 2025, the median valuation step-up for the $1B+ segment was 1.8x, while for companies valued $100-250M, $250-500M and $500-1000M, it reached 1.6x, 1.8x and 1.7x, respectively.
In February 2025, mid-sized companies ($500-1000M) and unicorns ($1B+) demonstrated a moderate median valuation step-up, which is explained by historically more restrained revaluation multiples at later stages, as well as heightened sensitivity of such companies to macro conditions; at the same time, current multiples are at a level similar to early stages, which reflects continued strong investor interest in late-stage companies.
Median valuation step-up for companies with $1B+ valuation, 2021-2025
Key statistics for Growth and Late Stage companies, February2025
Exits & Bankruptcies
The number of VC exits reached 19 in February 2025 – 11 of them were made through M&A (acquisition of a controlling stake by a strategic investor) and another 8 through Buyout (acquisition of a controlling stake by a PE investor).
The total volume of deals associated with VC exits exceeded $24B, up 15% from a month earlier.
In 2023-2024, the number of bankruptcies remained at a high level, but in the second half of 2024, the number of bankruptcies returned to a level close to 2021-2022 and in February 2025 amounted to 23 cases. Further dynamics will depend on macroeconomic conditions and availability of capital.
The total volume of deals associated with VC exits exceeded $24B, up 15% from a month earlier.
In 2023-2024, the number of bankruptcies remained at a high level, but in the second half of 2024, the number of bankruptcies returned to a level close to 2021-2022 and in February 2025 amounted to 23 cases. Further dynamics will depend on macroeconomic conditions and availability of capital.
Number of bankruptcies, 2021-2025
Top-5 New Rounds Raised by Companies with $1B+ Valuation
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NinjaOneNinjaOne is a developer of a cloud platform designed to monitor, manage and support the operations of IT service providers.
- Industry: Business/Productivity Software
- Round size: $500M (Series C)
- Round date: 24 Feb 2025
- Total funding: $768M
- Valuation: $5.00B
- Investors: CapitalG, ICONIQ Growth, Summit Partners, 186K Ventures, Amit Agarwal
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VerkadaVerkada is a developer of a cloud platform designed to provide enterprise physical security technology: video surveillance cameras, sensors and alarms.
- Industry: AI & ML, IoT
- Round size: $200M (Series E)
- Round date: 19 Feb 2025
- Total funding: $655M
- Valuation: $4.45B
- Investors: General Catalyst, Lightspeed Venture Partners, Sequoia Capital, Eclipse Ventures
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Saronic TechnologiesSaronic Technologies is a manufacturer of unmanned surface vehicles designed to improve maritime safety and ease navigation.
- Industry: AI & ML,Advanced Manufacturing
- Round size: $600M (Series C)
- Round date: 18 Feb 2025
- Total funding: $845M
- Valuation: $4.00B
- Investors: General Catalyst, Andreessen Horowitz, Lightspeed Venture Partners, Quiet Capital
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Together AITogether AI is an operator of a cloud service platform providing a decentralized interface for artificial intelligence.
- Industry: AI & ML,CloudTech & DevOps
- Round size: $305M (Series B)
- Round date: 20 Feb 2025
- Total funding: $538M
- Valuation: $3.30B
- Investors: Brave Capital (San Francisco), General Catalyst, Salesforce, Coatue Management
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HarveyHarvey is a developer of a legal IT platform designed to help lawyers with routine tasks using AI.
- Industry: AI & ML, LegalTech
- Round size: $300M (Series D)
- Round date: 12 Feb 2025
- Total funding: $516M
- Valuation: $3.00B
- Investors: Coatue Management, Flat Capital, Sequoia Capital, Kleiner Perkins, SV Angel
Important notice: The figures presented in the reports for previous periods may be subject to subsequent backward-looking adjustments in later reports due to the delay in obtaining data on closed transactions and the possibility of their adjustments in the market intelligence systems used to extract deal data.
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