In 2013, DeepMind—Europe’s leading AI company—initially rejected advice to “sell to Google” but was eventually acquired for $650 million, costing Europe a tech icon.
Europe leads the world in scientific research, boasting 9 of the top 25 AI research institutes and accounting for 14% of global “unicorns.” However, historical breakthroughs like DNA, the Web, and foundational AI have all been commercialized by US companies.
The main issue isn’t strict regulations like the EU’s AI Act, but a lack of venture capital funding at the growth stage. In 2022, Europe peaked at 22% of global VC funding but saw a sharp decline after the launch of ChatGPT, as the US poured hundreds of billions into AI infrastructure.
For example, Wayve (UK) raised $1 billion in 2024, mostly from SoftBank, Microsoft, and Nvidia—not from Europe.
While US pension funds invest an average of 2% of their assets in VC, European funds invest only 0.018%. This means for every $1 they invest, the US invests $100. If Europe increased its investment to 2%, it could inject an additional $236 billion into technology.
Some reforms are underway: Germany has raised its venture capital investment limit to 15%, the UK has committed to increasing it to 5% by 2030 (the Mansion House Compact), and Nordic countries—like Denmark, Sweden, and the Netherlands—are pioneering fund diversification.
Companies like Mistral AI (France, valued at $14 billion), Synthesia, Robin AI, and Lovable Labs are proving that Europe can lead if properly funded.
📌 Europe leads the world in scientific research, boasting 9 of the top 25 AI research institutes and accounting for 14% of global “unicorns.” The main issue isn’t strict regulations like the EU’s AI Act, but a lack of venture capital at the growth stage. While US pension funds invest an average of 2% of their assets in venture capital, European pension funds invest only 0.018%. If they increased this to 2% like the US, Europe could inject an additional $236 billion into technology. What Europe lacks isn’t talent—it’s financial courage.
