Venture capital investment in European businesses decreased last year, with a drop in the number of deals despite an increase in deal value. The overall mood was one of cautious optimism, as market conditions showed signs of improvement. AI investments surged, particularly in the UK, while other sectors like cleantech and fintech saw declines. Fundraising remained stable, but future capital raises are expected to be lacklustre. Analysts noted a positive trend in exits, indicating increased confidence in the market. Venture debt also rose significantly, although a muted outlook is anticipated for 2025.