Dutch venture capital market grows strongly despite European dip
Geopolitical uncertainty is not dampening the investment climate, according to the latest report from KPMG.
Published on July 23, 2025
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Despite ongoing geopolitical tensions and uncertainty surrounding trade tariffs, the global venture capital market remains resilient, according to the latest report from KPMG. In the second quarter of 2025, €86.9 billion was invested in 7,360 deals worldwide. Although this represents a decline compared to the previous quarter (€109.8 billion), the difference was largely due to the mega deal involving OpenAI (€34.2 billion) in the first quarter. Excluding this outlier, the market shows a stable recovery. Investment growth was particularly strong in the Netherlands in the past quarter, with an increase of 67%.
Global: resilience and strategic choices by investors
The venture capital (VC) market continued to face significant headwinds in the second quarter of 2025, mainly due to the US tariff announcements on April 2. These are causing uncertainty around global trade, supply chains, and sectors that are sensitive to tariff risks. Nevertheless, investors are showing resilience and remain active, particularly in sectors that are less sensitive to trade risks.
AI remains the dominant sector worldwide, with a growing focus on vertical applications such as defense, healthcare, and fintech. Governments are investing heavily in technological sovereignty and stimulating AI startups through large-scale programs. In addition, there is more interest in space tech, and fintech also remains popular, thanks in part to successful IPOs in the US.
Europe: slight decline, but strong focus on AI and defense
In Europe, total VC investment fell slightly from €13.9 billion across 2,358 deals (Q1) to €13.1 billion (Q2), spread across 1,737 deals. The number of deals declined, but the investment focus shifted clearly towards AI and defense technology. Major deals included Helsing (Germany, €583 million, defense AI) and Tekever (Portugal, €427.4 million, surveillance drones). The geographical spread of the top deals highlights the pan-European appeal of innovative technologies. €6 million for Tibo's AI energy management systemTibo has raised €6 million for its AI-driven energy management system.
Record growth in investments in the Netherlands
Despite the slight decline in Europe, the Dutch market saw strong growth. In the Netherlands, approximately €747 million was invested in startups in Q2 2025, an increase of 67% compared to Q2 2024 (€429 million).
The number of deals rose from 79 in Q1 to 101 in Q2, making it one of the most active quarters in recent years. Major investments went to Azafaros (€147 million, biotech) and FINOM (€115 million, fintech), among others. Geopolitical uncertainties appear to have diminished or stabilized at a “new normal.” Combined with adjusted company valuations, this has led funds to deploy a greater portion of their available capital.
Cautious optimism and technological focus
Looking ahead to the second half of 2025, VC investors worldwide anticipate a continued cautious stance, primarily due to uncertainty about US trade tariffs and delayed exits, which will prolong the time it takes for investors to recoup their money. Nevertheless, AI, defense, health, and fintech are expected to continue to dominate the investment landscape in the coming quarters. In Europe, governments will continue to invest in technological sovereignty and stimulate local ecosystems.
“The venture capital market shows that investors are not deterred by geopolitical uncertainties, but are instead seeking opportunities in sectors that contribute to strategic autonomy and innovation,” says Romy Menten, Lead KPMG Emerging Giants at KPMG Netherlands. “AI and defense tech are particularly high on the European investment agenda. European governments are putting extra effort into technological independence and innovation, partly by stimulating European AI and defense-related ecosystems.”
