European tech valuations & M&A multiples — premium pockets vs PE compression
Key Questions
Where are premium valuations appearing in European tech?
Premiums are concentrated in cyber, cloud, AI, and deeptech sectors, including deals like SAP Prior, Cohere Aleph at $20B, and Vinted's €8B secondary. Broader EV/Sales multiples have stabilized at 4.2x as of May 2026.
What are current M&A multiples and unicorn activity in Europe?
EU M&A reached $350B with a 42% YoY increase, and multiples stand at 9.9x. Europe has produced 11 unicorns year-to-date amid these trends.
How are VCs adapting as IPO momentum slows?
VCs are shifting toward partial exits, M&A, secondaries, and recaps. This pivot responds to fading IPO activity and compressed PE multiples in software.
Premiums in cyber/cloud/AI/deeptech (SAP Prior, Cohere Aleph $20B, Vinted €8B secondary); EV/Sales multiples at 4.2x (May 2026 stabilization). Europe 11 unicorns YTD; EU M&A $350B +42%, multiples 9.9x. VCs pivoting to partial exits/M&A/secondaries/recaps as IPO momentum fades. Recent: Revolut $750M secondary reinforces secondary trend; AI panic freezes software buyouts ($50B vs $88B) adds valuation uncertainty for software targets.