Welcome to the June 2025 edition of the CEE SaaS Index, developed by Warsaw Equity Group and Vestbee to provide a clear, region-specific benchmark for valuing SaaS companies in Central and Eastern Europe. The following index aims to help founders, investors, and members of the local startup ecosystem track valuation trends, compare regional performance with global benchmarks, and better understand the forces shaping the future of SaaS in CEE.
Low deal activity in Europe
The second quarter of 2025 closed with around 2,500 venture deals across Europe, the second-lowest quarterly total since 2019, according to Pitchbook. Deal activity continued to decline since 2021, when Europe averaged 3,790 deals per quarter during the post-COVID tech boom. The drop has been especially pronounced at the seed and early-stage levels, as investors remain cautious in today’s uncertain economic environment.
SaaS still among top funded sectors
Despite the overall slowdown, SaaS remains one of Europe’s most active sectors. Of the €13.6 billion invested across Europe in Q2, €8.3 billion was allocated to software-as-a-service startups across 1,027 deals. SaaS was the second most-funded vertical, behind Artificial Intelligence & Machine Learning, which attracted 34.5% of total capital. Fintech came in third.
CEE SaaS Index continues to rise
The CEE SaaS Index ended Q2 2025 at a 3.99x annualized revenue, marking a 9.3% quarter-over-quarter increase, its third consecutive quarter of growth in revenue multiple. The gap between CEE and global benchmarks continues to narrow, especially relative to the US BVP Nasdaq Emerging Cloud Index, which closed June at 6.06x, down slightly from the previous quarter.
While US-based companies maintained strong median revenue growth at 16%, growth in the CEE region nearly halved, dropping to just 5.1% YoY. Even with this weaker performance, investor interest in the CEE SaaS market remains strong. The total market capitalization of companies tracked in the CEE SaaS Index reached a record high of €2.11 billion, despite the number of companies in the index having decreased from 12 to 10 since its beginning.
About CEE SaaS Index
CEE SaaS Index is a simple tool for startups and investors to value SaaS companies in Central & Eastern Europe based on revenue multiples from publicly traded SaaS companies from the CEE region, developed by Vestbee and Warsaw Equity Group.
While revenue multiples from publicly traded SaaS companies can provide a helpful starting point for valuation, currently available indexes are only based on US-listed SaaS companies, leaving the CEE region without relevant benchmarks, despite the region's thriving startup ecosystem and quadrupled VC funding over the last three years.
With projected growth and increased investment in CEE tech companies, a more appropriate valuation benchmark for regional startups and investors is required. To meet this need, Vestbee and the Warsaw Equity Group have collaborated to develop the CEE SaaS Index, providing a relevant benchmark for regional and international investors.
Key updates on CEE SaaS Index performance for June 2025:
- CEE SaaS Index reached an all-time high market cap of €2.11 billion.
- SaaS is still a top-funded sector in Europe, second only to AI/ML.
- CEE SaaS Index rose 9.3% QoQ, now to 3.99x revenue multiple.
- Revenue growth in CEE slowed to 5.1%, vs. 16% in the US.
- Overall deal activity remains low, especially at early stages.
