Venture capital: investing in Europe’s innovation
Europe is a science superpower and venture capital turns ideas into innovations. European VCs are deeply connected to world-leading universities, research institutes, and entrepreneurs. They are powering breakthroughs in AI, life sciences, climate tech, defence, and consumer innovation.
As Europe scales its policy ambitions and invests in strategic fields, VC managers are there to back home-grown champions and unleash untapped potential.
A stellar decade
Over the last ten years, European VC has become a global force. It funds bold founders, fuels growth, and delivers returns that trump Silicon Valley.
€133bn
invested in 26,000+ companies (2016–2025)
16.59%
10-year net returns → ahead of North American VC funds (13.77%)
11.25%
net returns since inception ahead of MSCI Europe index
A truly European network
VC in Europe is not confined to London, Paris, or Berlin. With 600+ start-up hubs and 8 major regions, Europe’s ecosystem stretches from Lisbon to Tallinn, Budapest to Stockholm.
Between 2021–2025, VC managers mobilised:
€47.5bn
in domestic investment
€17.1bn
in cross-border deals
€8.8bn
from non-European investors
Top regions for VC investment (2021–2025):
€34.8bn
France & Benelux
€22.4bn
UK & Ireland
€18.2bn
DACH
Top sectors (2021–2025):
€61.7bn
ICT
€24.3bn
Biotech & Healthcare, 23% of all VC investment
€8.8bn
Consumer Goods & Services
Powered by research and talent
Europe’s VC edge rests on its world-class talent and research base.
4m
graduates annually across business, engineering, and science
18m
scientists & engineers (vs 17.5m in the US)
2.1m
researchers (vs 1.6m in the US)
424
unicorns in EU & UK (2024) → 4x growth in a decade
Private Equity at Work
VC-backed start-ups employ almost 1 million people, creating tens of thousands of highly skilled jobs each year, consistently outperforming Europe’s wider job market.
A pioneer in life sciences
From penicillin to mRNA vaccines, Europe has long been a life sciences powerhouse – and VC is accelerating the next wave of breakthroughs.
With EU funding set to make Europe the world’s most attractive life sciences region by 2030, VC is at the heart of this transformation.
€21bn
invested in biotech in 2021-2025
2,659
biotech & healthcare venture companies backed
VC Success in European Biotech & Healthcare
Life Sciences are not only critical for a healthier population, cutting-edge Biotech & Healthcare are also at the heart of a more innovative, competitive and stronger sovereign Europe. And that makes it a dynamic field for venture capital (VC) investment, and an unmissable sector for global investors looking for exposure to revolutionary European businesses and outstanding returns.
The European Life Sciences Coalition (ELSC)
Launched to strengthen Europe’s life sciences and biotechnology VC ecosystem by mobilising greater levels of private and public investment across the sector. Created in association with Invest Europe, the coalition brings together leading European life sciences venture capital firms, research institutions, and other stakeholders across the value chain.
Driving the green transition
Europe is outpacing the US in green venture capital:
18% of European VC funding in 2025 went into green start-ups → vs 6% in the US
Hundreds of climate-focused start-ups are scaling fast, from nuclear fusion and green hydrogen to carbon analytics and ecosystem monitoring.
European energy and industrial policy provides a strong tailwind, channelling billions into sustainable innovation.
Why it matters
• Europe’s venture ecosystem now delivers market-beating returns. • VC is the best way to access Europe’s start-ups early and at attractive valuations. • It drives deep tech, life sciences, and climate innovation on a global scale. • Backing VC means investing in the next generation of European champions. • More global investors will be needed to fully unlock Europe’s innovation power.
