Stride Ventures, a leading growth credit firm with a global footprint, in partnership with global management consultancy Kearney, today launched the Global Venture Debt Report 2025 at a London event co-hosted by both firms. The report presents the most comprehensive, data-driven analysis of the global Venture Debt (VD) and Growth Lending (GL) landscape across India, the GCC, Southeast Asia, and Europe.
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Global Venture Debt Report 2025 By Stride Ventures and Kearney
As venture capital funding becomes selective, alternative financing is gaining ground. The report reveals Europe's VD and GL market reached $19.78 billion in 2024, growing at a 21% CAGR since 2018. While deal volumes declined due to macroeconomic pressures, adoption of structured debt continues to deepen across the continent.
"The European growth lending ecosystem is at an inflection point-scaling fast, maturing steadily, and moving beyond traditional equity-first mindsets," said Ravneet Mann, Partner (UK), Stride Ventures. "The UK, in particular, is cementing its status as Europe's most active venture debt hub, underpinned by progressive reforms, late-stage startup activity, and strong institutional participation. This report aims to offer clarity, benchmarks, and foresight for founders, investors, and regulators navigating this evolving capital landscape."
Europe's VD landscape is transforming, with the UK emerging as the most active market, accounting for ~18% of all VD/GL deals in 2024. Late-stage companies drew 82% of total VD/GL value. In a survey of 200+ founders, VCs, and investors, 82% cited growth financing as the top use case for venture and growth lending. Fintech remained the leading sector for VD/GL deployment in FY26. The survey predicts fintech will attract the highest VD (47%) in FY26, followed by healthtech (28%) and cleantech (25%) reflecting a shift toward mission-driven, regulation-resilient sectors. Despite macroeconomic headwinds that cut European deal volume from 967 in 2023 to 589 in 2024, the venture debt-to-VC ratio rose from 16% in 2018 to 30% in 2024-highlighting momentum.
Europe has a fragmented regulatory landscape, with no unified definition of venture debt. Although "growth lending" is more commonly used to capture non-dilutive debt financing tailored for venture-backed and high-growth companies, typically at late stages of their scale-up journey, it includes the broader scope of structured debt instruments-ranging from term loans to asset-backed and warehouse financing.
In the UK, reforms through Mansion House and FCA regulations aim to unlock initiatives like £1B+ in pension fund capital and foster a transparent, innovation-friendly funding environment.
"Venture debt is increasingly establishing itself as a crucial financing tool in the global venture ecosystem. As this asset class expands, it plays a vital role in helping founders scale efficiently while preserving equity. Yet, it remains underutilized in many markets-offering untapped potential," said Sebastian Drescher, Partner, Kearney. "As a former founder, I understand the need for diverse financing avenues. The next phase of growth will depend on how well global ecosystems integrate venture debt as a mainstream instrument."
While Europe's market shows maturity and depth, it faces uneven adoption. By contrast, in the GCC VD surged at a 54% CAGR from 2018-2024. In India, the venture debt market reached $1.23 billion in 2024-just 10% of total VC flow-indicating significant room for growth.
Europe's strengths lie in deal value and institutional appetite. The absence of harmonised frameworks limits innovation and seamless cross-border capital flows. To unlock its full potential, the region can diversify its lender base-currently ~30 active VD players compared to 250+ in the US-and expand beyond the UK, Germany, France, and the Netherlands.
The Report Link:
https://www.strideventures.global/reports
Stride Ventures - https://www.strideventures.global/
Kearney https://www.kearney.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20250508997982/en/
Contacts:
Sammit Prabhakar; +91-9773755928
