Invest Europe

You Ask, We Answer #18: How Are PE & VC Powering European Innovation?

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28 Aug 2026

PE and VC provide essential funding for early-stage companies, helping breakthrough ideas grow into robust businesses. Investors also bring mentorship, strategy and experience from proven entrepreneurs. From fintech and ICT to biotech, energy and environmental technologies, start-up hubs across the continent are creating a dynamic, responsible and forward-looking innovation ecosystem.

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You Ask, We Answer Videos

💻 50% of VC investment in Europe is in the ICT sector

🧬 €21 billion invested by VC in biotech and healthcare between 2021 and 2025

European VC delivered 16.59% net IRR over 10 years – outperforming the US at 13.77% and demonstrating the strength of Europe’s innovation ecosystem.

And that investment is supporting employment and growth across the continent:

✅ VC-backed companies added 6% more jobs in 2023–2024

✅ 641,028 people work in 14,051 venture-stage companies

Creating the right environment for founders to grow can help Europe build on that success – and keep world-class innovation rooted here.

Disclaimer: The content is for informational and research purposes only. It does not constitute financial advice, investment guidance, or a solicitation to buy or sell any financial products or services. Invest Europe is a non-profit organisation dedicated to research, policy insights and reputation management. Any references to investment, finance, or related topics are based on specific and verifiable data and presented strictly within a research and educational context.

Read Transcript

0:00 You ask, we answer. Private equity and venture capital from startup to scale up. [music] Powering European innovation.

0:10 Vital funding for early stage companies.

0:13 PE and VC provide essential funding for early stage companies. Helping breakthrough ideas grow into robust companies. Startups become [music]

0:22 scaleups and scaleups become Europe's next global leaders.

0:26 Sharing business expertise, investors offer more than capital, mentorship, [music] strategy, and experience from proven entrepreneurs.

0:35 Their guidance helps innovators hire talent, refine products, expand [music] internationally, and turn great ideas into real world impact.

0:44 Europe [music] leads the world in innovation and responsible investment.

0:48 Europe is a global leader in fintech, ICT, biotech, energy, and environmental [music] technologies.

0:55 Startup hubs across the continent create one of the world's most dynamic, responsible, and forward-looking innovation ecosystems.

1:04 Performance and social impact. [music] European VC returns 16.59% net IRS over 10 years, outperforming the

1:12 13.77% and proving Europe's innovation strength. VC backed companies grow

1:19 rapidly, adding 6% more jobs in 2023 to 2024.

1:25 Creating conditions to thrive. Europe must support [music] innovation with better talent mobility, stronger scaleup pathways, and incentives for equity

1:33 ownership. The right environment helps founders [music] grow faster and keeps world-class innovation rooted in Europe.