European VC returns are dead. Here's how we fix them
27 jan. 2026
11:24
European venture capital is in trouble, as hype-driven investing and old networks crowd out new founders and fund managers, writes Torsten Kolind, founding partner at Underground Ventures.
European venture capital is in a deep crisis. Total funds raised are down by roughly two-thirds from their 2021 peak, and first-time funds have fallen to less than half of previous levels, according to Preqin research. Returns are weak, exits are scarce, and LP appetite is drying up.
Here’s the not-so-great cycle Europe has locked itself into: