Why European investors are increasingly funding American growth

The closing of LIQID’s third venture fund at more than €100 million could be seen as further evidence of the strength of European technology investment. The reality is more nuanced. Behind a German asset manager and predominantly European capital lies a very clear strategy: OpenAI, Anthropic, Stripe, SpaceX, Databricks and Anduril are among the companies to which its investors are seeking exposure.

At a time when the European Union is multiplying initiatives to support its technological sovereignty, a growing share of Europe’s private savings continues to seek value creation within US ecosystems. The question is no longer simply where innovation originates, but where returns are concentrated.

Capital follows value, not borders

Digital sovereignty has become a central theme in the European public debate. Capital flows, however, obey a different logic. Investors are primarily looking for companies capable of generating the greatest value over the course of a decade.

On this front, the United States retains a considerable lead. Within just a few years, OpenAI has become the most closely watched private company in the global technology industry. Anthropic has emerged as its main competitor in foundation models. SpaceX now dominates the commercial space economy. Databricks has established itself as one of the most important data infrastructure companies in the digital economy. Stripe remains one of the world’s most influential financial platforms.

Europe has produced champions of its own. Mistral AI, Helsing, Synthesia, DeepL and ElevenLabs demonstrate the continent’s ability to build leading technology companies. But a significant gap remains when it comes to reaching valuations of tens or even hundreds of billions of euros.

For investors, the question is straightforward: where are they most likely to capture the next wave of global value creation?

Artificial intelligence is reinforcing the US advantage

The current artificial intelligence revolution is accelerating this dynamic. Previous waves of technological innovation had already favoured the United States. The internet, cloud computing, social media and smartphones were largely structured around US companies.

AI is reproducing this pattern on an even greater scale. Developing foundation models now requires investments measured in billions of dollars, privileged access to the most advanced semiconductors, massive computing capacity and increasingly substantial energy infrastructure.

This reality favours companies capable of rapidly mobilising enormous amounts of capital.

OpenAI is backed by Microsoft. Anthropic has the support of Amazon and Google. xAI can draw on the financial and industrial resources of Elon Musk’s ecosystem. In just a few years, CoreWeave has become a strategic player in AI infrastructure.

In this environment, European investors are naturally seeking exposure to the companies occupying dominant positions across the value chain.

The real scarce asset is no longer the startup, but access

LIQID’s announcement also highlights another transformation taking place in the market.

“Thirty years of venture capital data point to a simple reality: most of the value is created by a small group of exceptional managers,” says Christian Schneider-Sickert, founder of LIQID.

Only a handful of investment firms consistently appear on the cap tables of each generation’s best-performing companies. Sequoia, Benchmark, Andreessen Horowitz, Thrive Capital, Accel and Lightspeed now enjoy a considerable cumulative advantage. Their reputations attract the best entrepreneurs, improving their performance and further strengthening their access to the most sought-after funding rounds.

The asset investors are seeking is therefore no longer simply access to a promising startup, but access to the funds that themselves enjoy privileged entry into the market’s most coveted companies. For a European investor, securing an allocation in certain US funds has become almost as difficult as investing directly in OpenAI or Anthropic.

European entrepreneurs are also looking towards America

The movement of capital is being accompanied by a gradual relocation of founders. For several years, investors have observed an increase in the number of European entrepreneurs incorporating their companies in the United States, joining accelerators such as Y Combinator or moving part of their operations to San Francisco and New York.

Y Combinator’s latest cohorts include a growing number of European founders launching their startups directly in the United States. This trend is particularly visible in sectors requiring substantial financing, including artificial intelligence, defence, software infrastructure and deeptech.

The reasons are primarily economic. US markets provide faster access to customers, investors and industrial partners. Funding rounds are often larger and, above all, exit opportunities are more numerous.

When founders follow these opportunities, capital generally follows them.

“In a market where capital is increasingly concentrated among a handful of leading companies, discipline and selectivity are becoming decisive,” explains Martin Meuter, head of portfolio management.

Europe produces startups; the United States produces global platforms

One of the most significant differences lies in the scale these companies achieve. While Europe has demonstrated its ability to create innovative businesses, it struggles to produce global platforms capable of dominating their markets over the long term.

The United States benefits from a large and homogeneous domestic market, exceptional financial depth and an investment ecosystem capable of supporting companies for decades without requiring them to go public immediately. This combination of factors encourages the emergence of private companies whose valuations can exceed those of long-established listed corporations.

The European paradox

This situation is creating an increasingly visible paradox. On one side, European institutions are mobilising tens of billions of euros to strengthen the continent’s technological sovereignty. On the other, European private investors are directing a growing share of their capital towards US leaders in those same strategic sectors.

This does not reflect a lack of European ambition. It primarily reveals where investors currently believe the largest returns of the coming decade will be concentrated.

A new geography of capital

LIQID’s announcement ultimately extends far beyond the closing of a single fund. It illustrates the emergence of a global geography of capital in which borders are becoming secondary to the dynamics of value creation.

European investors continue to finance local companies, but they also want to participate in the global technology platforms shaping the artificial intelligence economy.

The battle for technological sovereignty cannot be reduced to the location of companies. It also concerns the ownership of capital, access to returns and the ability to participate financially in the next waves of innovation.

On this front, the United States remains the primary centre of gravity in the global technology economy. Far from turning away from it, European investors are increasingly seeking a stake in its growth.