European VC is seeing renewed momentum this year, but the gap between early and late-stage has never been wider as capital concentrates on AI.
PitchBook’s Q1 2026 European VC Valuations Report shows that while early-stage activity remains relatively grounded, later-stage valuations are accelerating rapidly, particularly in AI-led segments
One of the clearest themes this quarter was the widening gap between stages. Pre-seed and seed valuations rose 17.6% to a median of €6 million (about $7 million). Still, Series C-D and Series E+ rounds saw median pre-money valuations rise by more than four times and 171%, respectively, as investors continued to concentrate capital in perceived category leaders.
AI remained the dominant force behind much of this inflation, with companies based in the UK and the German-speaking DACH countries featuring heavily among the quarter’s most highly valued raises. At the same time, Europe’s down-round environment is easing. The share of down rounds fell to a record low of 11.1% from 14.7% in 2025, suggesting improving confidence across venture markets after several years of reset and recalibration.