European tech continues to diversify geographically, driving cross-border investment activity

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For the past two years, European VCs have made around 1,000 investments per year in countries outside their home market

Number of non-domestic European investments by European VCs

There is a huge level of cross-border investment activity by European VCs

of investments made by European VCs are into companies based in countries outside of the VC's domestic market

We continue to see smaller ecosystems develop across Europe but there is certainly a long way to go -- which presents us with great untapped opportunity. While countries like Spain are on fire with multiple new startups, nice exits and ambitious teams, its neighbour Portugal is still coming up the curve and Italy, despite its $1.85T GDP, has not yet been able to generate a venture ecosystem commensurate to its potential. It is encouraging that more funds are willing to invest further from home so that founders in less well known tech scenes, who might have been overlooked a few years ago, can now access best-in-class expertise and the global capital necessary to scale.

Carolina Brochado

  • Atomico

This is unsurprising, as European VCs are increasingly seeing attractive opportunities outside their traditional footprint

As an investor, high-quality investment opportunities are increasingly opening up in European areas outside of our typical geographic focus