We need more VCs to lead investment rounds in Europe and the UK

Copyright Illai Gescheit

We need many more VCs to become lead investors in Europe and the UK.

If there is one thing that I hear over and over from startup founders in Europe, with great frustration, is that almost all the investors they talk with are happy to join their round, only if they get a lead investor to invest in them first.

In other words, most European VCs would not take the risk and leap first, but wait for someone else to do the due diligence, the hard work and take the risk and only then they will join - risk capital with minimal risk.

Sometimes I feel that the European ecosystem is like a land where founders walk like zombies mumbling "we need lead investors.... we need lead investors...".

We have amazing founders in Europe and the UK, we have enough capital, policies to incentivize startups and VCs, and we have great investors and corporate partners.

I think that we need to LEAD.

Being able to lead investment rounds is a mindset in my view. It's a mindset that you wish to lead in the ecosystem, take risks and bets on markets, on amazing founders and promising technologies - you wish to be first, ahead of everyone else.

The total number of VCs recorded in Europe in 2024 was approximately 4,044 VCS. Out of those, only 906 led more than two investment rounds, which means 22% of European funds are able to lead rounds. (would love for someone from Dealroom or Pitchbook to confirm and validate this).

We can do better than that. If we become leader in rounds, we will become leaders in venture.