Debt Market Update – Q2 2025
As we review the overall numbers for Q2 ’25, we see the continuation of a growing trend in both the technology and healthcare venture debt markets – stable deal value represented across fewer deals.
Naturally this means average deal size is increasing, with some large outliers skewing the numbers even higher.
Tech market deal value of $18.4 billion actually notches a new quarterly high point for the sector, but volume remains historically low at just over 200 deals. For context, this represents a 30% drop in deal volume from the same period last year, and if we look over the first halves year-over-year, tech sector deal volume is down more than 45%.
For regular readers of this newsletter, many are aware that the healthcare sector is faring even worse. These numbers are worth repeating throughout this newsletter – deal volume in the healthcare sector was more than 60% lower over the first half of 2025 than over the same period in 2024. At the same time, overall deal value has remained relatively steady over the same period.
As we have mentioned in the past, we attribute these trends to a continuation of lenders moving toward larger, later-stage growth investments. Across all sectors, late-stage venture and venture growth rounds have increased dramatically in average size and markedly so over the past two years.
To gain more insights into the venture debt market in Q2 2025, download the full report and read Capital Advisors Group’s Quarterly Debt Market Update.
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