In 2023, governments emerged as the largest investors in European venture capital (VC) funds, with their contribution more than doubling compared to the previous year. This trend highlights a significant governmental push for technological sovereignty amidst a general pullback from other types of investors in the VC sector.
This shift occurred despite an overall decline in investment into European VC. According to a report by Sifted, total funding for VC firms dropped by 42%, amounting to nearly half of the €24.5 billion raised in 2022. This sector-wide reduction underscores the growing importance of government involvement in supporting the tech industry in Europe during periods of reduced private investment.
Governments Were the Biggest Investor into European VC Funds in 2023
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Governments Were the Biggest Investor into European VC Funds in 2023
In 2023, governments became the largest investors in European VC funds, doubling their contributions compared to the previous year.