January 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
Feb 17, 2025
VC Market Report
Feb 17, 2025
Deal Count & Total Capital Invested
In January 2025, the number of deals completed by VC-backed companies with a valuation of $100M or more increased by 15% compared to December (93 deals) and amounted to 107 deals; year-over-year, the number of deals increased by 19%.
Deal count in 2024 remained moderate, below the 2021 peak, as rates continue to remain high despite the initiated rate reduction cycle.
The increase in overall deal count was driven by increased activity in the $1B+ segment.
Deal count in 2024 remained moderate, below the 2021 peak, as rates continue to remain high despite the initiated rate reduction cycle.
The increase in overall deal count was driven by increased activity in the $1B+ segment.
Deal structure by valuation segments, January 2025
During 2023-2024, Series B accounted for the largest share of deals, but its share is gradually declining, while the share of late-stage deals (Series C+) is gradually increasing, which may indicate a market recovery for more mature companies.
In total, the late-stage segment accounted for 40% of the total number of deals in January 2025.
In total, the late-stage segment accounted for 40% of the total number of deals in January 2025.
Fact
Total capital invested in venture-backed companies worth over $100M in January was $8.9B,
up 3% or $0.3B from December ($8.6B), and up 27% year-over-year.
up 3% or $0.3B from December ($8.6B), and up 27% year-over-year.
The dynamics of venture investment volumes in 2023-2024 reflect the influence of global macroeconomic conditions, including the effect of high interest rates; in 2024, a gradual market recovery is observed, associated with improving investor sentiment, adaptation to new financing conditions, as well as the rate-cutting cycle launched by the Federal Reserve in September.
In January 2025, the Fed kept the interest rate at 4.50% after cutting it by 0.25% (25 bps) in December 2024.
In 2025, we expect the Fed to maintain its interest rate at current levels with the possibility of further downward adjustments, which could stimulate increased activity in the VC market.
In January 2025, the Fed kept the interest rate at 4.50% after cutting it by 0.25% (25 bps) in December 2024.
In 2025, we expect the Fed to maintain its interest rate at current levels with the possibility of further downward adjustments, which could stimulate increased activity in the VC market.
Invested capital ($B) structure by valuation segments, January 2024
Dynamics of invested capital and deal count, companies valued at 100M+, 2023-2025
- In January 2025, a total of $9.6B was raised in Series B+ rounds, with $4.2B coming from Series B and $3.1B 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
Early stages show stable dynamics in median investment round sizes, while later stages demonstrate high volatility due to the effect of individual large deals. The median round size in January 2025 for companies valued at $1B+ was $165M (-67% MoM), while in the $100-250M, $250-500M, and $500-$1B segments, it reached $30M (+24% MoM), $76M (+27% MoM) and $66M (-56% 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, supporting the trend towards investor caution; in January, the $100-250M and $250-500M segments saw a 19-month and 34-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 January, the median time between rounds in the $1B+ segment was 18 months versus 16 months for companies with valuations of $500M-1B.
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, supporting the trend towards investor caution; in January, the $100-250M and $250-500M segments saw a 19-month and 34-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 January, the median time between rounds in the $1B+ segment was 18 months versus 16 months for companies with valuations of $500M-1B.
Median time between investment rounds for companies with $1B+ valuation, 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 January, the median post-money valuation in the $1B+ segment amounted to $2.15B (-23% MoM), while in the $100-250M, $250-500M, and $500-$1B segments, it reached $0.15B (-3% MoM), $0.34B (+2% MoM) and $0.66B (+3% MoM), respectively.
Fact
In January 2025, the median valuation step-up for the $1B+ segment was 1.3x, while for companies valued at $100-250M, $250-500M, and $500-1000M, it reached 1.8x, 1.9x and 1.9x, respectively.
Mid-sized companies ($500-1000M), which are typically in the active scaling phase, show some of the highest valuation growth; unicorns ($1B+) have lower valuation multiples due to historically more restrained valuation step-up at later stages, as well as the heightened sensitivity of such companies to macro conditions.
Median valuation step-up for companies with $1B+ valuation, 2021-2025
In November, the $1B+ segment showed a 17% decrease in the median post-money valuation of closed deals.
The median post-money valuation in the $100-250M segment remained almost unchanged, having stabilized at $0.15B, while in the $250M-500M and $500M-1B segments, it increased by 7% to $0.35B and by 6% to $0.59B, respectively.
The median post-money valuation in the $100-250M segment remained almost unchanged, having stabilized at $0.15B, while in the $250M-500M and $500M-1B segments, it increased by 7% to $0.35B and by 6% to $0.59B, respectively.
Key statistics for Growth and Late Stage companies, January 2025
Exits & Bankruptcies
The number of VC exits reached 19 in January 2025 – 14 were made through M&A (acquisition of a controlling stake by a strategic investor) and another 5 through Buyout (acquisition of a controlling stake by a PE investor).
The total volume of deals associated with VC exits exceeded $20B, up 87% from a month earlier.
The total volume of deals associated with VC exits exceeded $20B, up 87% from a month earlier.
Number of VC exits in companies with a valuation of $100M+, 2023-2025
During 2023-2024, the number of bankruptcies remained at a high level with peaks in May (83) and June (82) 2024, but in the second half of 2024, the number of bankruptcies returned to a level close to 2021-2022 and in January 2025 amounted to 35. Further dynamics will depend on macroeconomic conditions and capital availability.
Number of bankruptcies, 2021-2025
Top-5 New Rounds Raised by Companies with $1B+ Valuation
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Colossal Laboratories & BiosciencesColossal Laboratories & Biosciences is an operator of a biotechnology company seeking to create radical new technologies to advance the field of genomics.
- Industry: Biotechnology, Life Sciences
- Round size: $200M (Series C)
- Round date: 15 Jan 2025
- Total funding: $438M
- Valuation: $10.20B
- Investors: TWG Global (LA), US Innovative Technology Fund, Animoca Brands, The World Economic Forum
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HelionHelion is a developer of patented plasma accelerator technology designed to meet the growing need for clean energy.
- Industry: CleanTech, Climate Tech
- Round size: $425M (Series F)
- Round date: 28 Jan 2025
- Total funding: $1.03B
- Valuation: $5.43B
- Investors: Good Ventures Foundation, Lightspeed Venture Partners, SoftBank Group, Blackrock
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WhatnotWhatnot is a developer of a live streaming platform designed for the sale of limited edition toys and collectibles.
- Industry: E-commerce
- Round size: $265M (Series E)
- Round date: 08 Jan 2025
- Total funding: $750M
- Valuation: $4.97B
- Investors: Lightspeed Venture Partners, Greycroft, DST Global, BOND Capital (San Francisco)
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InnovaccerInnovaccer is an operator of a technology platform for storing and providing data in the healthcare sector.
- Industry: AI & ML,HealthTech
- Round size: $275M (Series F)
- Round date: 09 Jan 2025
- Total funding: $651M
- Valuation: $3.45B
- Investors: Kaiser Permanente, Danaher Ventures, Tiger Global Management, Lightspeed Venture Partners
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ElevenLabsElevenLabsis a developer of an AI audio platform designed to generate realistic speech.
- Industry: AI & ML, Multimedia and Design Software
- Round size: $250M (Series C)
- Round date: 24 Jan 2025
- Total funding: $353M
- Valuation: $3.30B
- Investors: ICONIQ Growth, HubSpot Ventures, LG Technology Ventures, Salesforce Ventures, Sequoia Capital
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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