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| The Weekend Pitch |
| October 12, 2025 |
| Presented by Arcesium |
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| (Adriana Hansen/PitchBook News) |
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Ask investors inside and outside Europe what is holding back the continent's VC market, and most, if not all, would say a lack of pension fund participation.
Unlike other markets, such as the US, European VC has failed to bounce back. This year, deal activity is projected to land at its lowest level since 2016, while total deal value is unlikely to surpass last year's, even with a boost from AI. Despite recent signs of improvement, the fundraising environment remains one of the harshest seen this decade.
Geopolitical headaches, mostly tariff-related, and slower economic growth in EU countries this year have affected the appetite for VC. Yet the continued pullback in activity underscores a deeper issue that Europe has been struggling with for a while: a funding gap that can be traced to a lack of deep-pocketed institutional investors.
I'm Leah Hodgson, and this is The Weekend Pitch. You can reach me at leah.hodgson@pitchbook.com or on X @LeahFHodgson.
"There's a chronic lack in Europe of the types of LPs that you see in the US," said Kinga Stanislawska, founder of European Women in VC and general partner of Experior VC. "Putting 1-2% of pension money to work for venture would be transformational for Europe and the pension funds themselves."
Despite pension funds across Europe managing over €3 trillion (about $3.4 trillion) in assets, only around 0.12% is invested in VC and growth, according to a new report published by European Women in VC, Pensions for Purpose and Venture Connections. For their US-based counterparts, the allocation is around 10% for PE, including VC. |
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| Since yesterday, the PitchBook Platform added: |
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6
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People
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26
Companies
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| Why data quality matters, and how private markets can enhance it |
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As private markets continue to grow in scale, complexity, and investor scrutiny, so does the volume of data. Discover the vital role that data quality plays in credibility with investors and how it can help firms capitalize on opportunities faster with this guide from the financial data platform experts at Arcesium. Start leveraging data as a strategic differentiator by learning Arcesium’s five pillars of data management, helpful tools, and more.
Read the guide |
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| (Mike Kemp/Getty Images) |
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Sovereign wealth funds are ratcheting up their investments in generative AI with 2025 breaking records. According to PitchBook data, across 59 deals how much deal value have sovereign wealth funds generated within the AI space?
A) $27 billion
B) $59.7 billion
C) $43 billion
D) $34.3 billion
Find your answer at the bottom of The Weekend Pitch! |
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Can Discord's next level
win over investors?
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Discord is gearing up for what could be one of the most significant IPOs in the gaming and social communication space since Roblox went public in 2021. With more than 200 million monthly active users spending almost 2 billion hours on the platform each month, Discord has become the go-to hub for gamers and online communities worldwide.
But there are challenges on the road ahead, according to our latest analyst note. While secondary market valuations have cooled from 2021 highs, Discord's IPO will test whether investors believe the company's expansion into advertising, apps and digital commerce can match its cultural influence and community engagement. |
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Europe's PE deals
pick up pace in Q3
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European PE dealmaking accelerated in Q3, with mega-deals and US sponsors driving the continent's growing role as a global hub for the strategy.
Exit activity also rebounded—with major continuation vehicle transactions and middle-market deals providing much-needed liquidity as LPs push for distributions, according to our latest European PE Breakdown, sponsored by Grant Thornton Stax.
Fundraising remains tough at the top end, with mega-funds under pressure. But the middle market is thriving—particularly in the UK, which has cemented its status as Europe's fundraising hub. |
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