The study reveals a number of differences in the operational characteristics of US VCs compared with their European counterparts. US VCs have a higher risk approach to investing which can lead to outlier returns for VC funds as a whole. US VCs, particularly the West Coast-based VCs, have entrepreneurially friendly terms in their term sheets as opposed to the investor friendly terms found with European VCs and with some East Coast-based VCs. This demonstrates US VCs’ focus on the upside of investment growth and the European focus on downside protection. US VCs put considerable resource into researching and developing innovative new areas for investment. With their greater resources, US VCs are able to carry out most of their due diligence in house, which is also a reflection of the greater knowledge of technical and market aspects of deals by US VCs due to their backgrounds and their networks. US VCs exhibited a more collaborative approach to syndication than European VCs. US VCs adopted a metrics-based approach to monitoring their portfolio companies’ performance and waited for the best exits, whereas European VCs tend to exit early, possibly on account of fundraising pressures.