European Venture Capital: An Overview Europe currently trails the blistering pace set by US-based venture capitalists. However, European venture activity has recently experienced significant growth, and several elements of the current market suggest a potential that well exceeds its present state. For instance, the legal and fiscal environment for venture capital investment is improving in a number of European countries, and exit opportunities are becoming more abundant with the development of secondary stock markets. The cross-fertilization of US and European venture activity also suggests future growth. US pension funds are now major contributors to European venture capital funds, and US venture capital firms are establishing offices in Europe and backing European entrepreneurs. US entrepreneurs are seeking European financing and alliances, and the European venture capital and entrepreneurial communities are responding in kind.