ABSTRACT
The findings from the study of the wider environmental aspects in which VC firms operate include the lower propensity for risk of European VCs and not “thinking big enough” with their investments. The difficulty in scaling up companies in Europe was viewed by several interviewees as perhaps the key difference between the UK and US environments. There is a greater willingness to share contacts, talents and information in the US, particularly in the unique environment of Silicon Valley, compared with a more proprietary system in Europe. The fragmented markets existing across Europe can be compared to the uniform federal structure in the US, which permits the more effective scaling of VC backed businesses. The US also benefits from a more open, sharing culture compared to a more proprietary culture in Europe. The relative lack of CEOs and serial entrepreneurs in Europe is compared to the more plentiful supply of experienced CEOs and serial entrepreneurs in the US to run innovative, VC backed high growth technology businesses. Luck may even play a role in VC investing with both European and US investments.
