The European startup market is ready for the limelight | TechCrunch

"Founders, venture investors and government officials alike acknowledged the hurdles that have traditionally held Europe back from reaching its true scale and potential. For many years, European founders moved to the U.S. to start their companies or exited earlier than they needed to since they were operating in a market that lacked local customers and cash. Firms including OMERs Ventures and Coatue made concerted efforts to enter Europe by opening offices in London after the pandemic, but have since shuttered those shops."

"OMERs, for example, let much of its European team go. Meanwhile, Silicon Valley firms have claimed in the last few years that to focus on innovation, startups and investors need to retreat to San Francisco. Largely, people think the kinks have been worked out: Multiple venture investors told TechCrunch at Slush that the notion of the market being undercapitalized, or that deeper U.S. pockets aren't interested, is overblown."

"One investor specifically said there is absolutely more U.S. capital in the European market now than five years ago. Plus, some headlines draw more attention than others: When OMERs Ventures announced its retreat, IVP and Andreessen Horowitz both said they were opening offices in London. European companies are also starting to find success in resisting pressure from U.S. investors to move to the Valley to build their companies."

Helsinki's Slush conference indicated a European venture market poised for rapid transformation and capable of producing a trillion-dollar company. Founders, venture investors and government officials acknowledged historical hurdles that constrained scale and potential. For many years founders moved to the U.S. or exited early because local customers and capital were scarce. Some firms opened London offices after the pandemic and later closed them, while other U.S. investors increased their presence in Europe. Several investors argue the market is no longer undercapitalized and that deeper U.S. capital is now active. European companies are increasingly resisting pressure to relocate to Silicon Valley and are growing successfully while remaining local.

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