Sequoia Capital may have packed up its London office, but American money keeps pouring into Europe’s AI startups at a pace that could end 2026 as a near record year.
Venture capital deals across the continent have already reached $58.7 billion this year, according to PitchBook data. U.S. firms account for 70 percent of that total. Meanwhile, AI companies claim 68 percent of all European investment, far outpacing the 50 percent share analysts originally projected.
The flood of capital arrives even as global equities shuddered this week. The Nasdaq plunged more than 5 percent Thursday, triggering fresh anxiety that AI valuations have climbed too high. Yet investors still see long-term potential in a technology poised to reshape entire industries.
Several American funds have planted deeper roots in Europe. Brighton Park Capital opened its London office last year. Sixth Street Partners, FTV Capital, and Lead Edge Capital have also expanded there. Riverside Acceleration Capital runs its European operations from Cologne, while General Catalyst merged with Berlin-based La Famiglia in 2023.
Tom Hussey, a partner at Brighton Park’s London office, said his firm crossed the Atlantic after losing European deals because no one was on the ground. “We were seeing great deal flow in Europe,” he told Newsweek. “The U.S. has been further ahead for a long time, but Europe is heading on the same trajectory of entrepreneurial innovation.”
Brighton Park’s recent bets include a joint $60 million investment in Orbital, a British AI startup automating real estate due diligence, and Person Centered Software, a care management provider for UK care homes.
For European founders, American investors offer more than capital. They bring operational playbooks from similar trends that played out earlier in the U.S. and can guide startups eyeing American expansion.
Rory Blundell, CEO of Gravitee, which helps companies manage and secure AI agents, raised $60 million last year from Riverside Acceleration Capital and Sixth Street Partners. He now plans to seek another $150 million. Blundell said European capital pools exist but remain hard to reach for companies like his. “We’re looking for investors that are excited by that ambition,” he said, noting that American investors often “swing for the fences.”
PitchBook analyst Navina Rajan said lower valuations in Europe, especially among AI firms, keep drawing U.S. money. American AI investment sits around 83 percent of total venture dollars there.
As AI tools spread deeper into specific industries, the opportunity keeps widening. Hussey called that application layer “a rich vein” that could drive investment for the next decade.
