Startup investors are leaving Europe

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Why Index Ventures moved to San Francisco

Index Ventures, one of Europe’s leading venture capital firms, has significantly expanded its U.S. presence over the past decade. Originally founded in Geneva in 1996, the firm opened a San Francisco office in 2011 and later added a New York office to increase its access to American startups. Today, Index manages $15 billion in assets and has backed major U.S. companies, including Figma, Discord, Notion, and Roblox.

With higher startup valuations, more late-stage capital, and faster exits, the U.S. remains the most attractive market for venture capital. For Index Ventures, expanding in the U.S. is not about leaving Europe; it is about tapping into the world’s most developed startup ecosystem.

Why U.S. startups are getting priority

Index Ventures built its reputation by backing some of Europe’s top startups, but its move to the U.S. was a calculated expansion. The firm saw the need to support European founders scaling in the American market while also accessing high-growth U.S. startups with a more favorable environment for large investment rounds.

The firm’s investments in the U.S. have paid off. Its portfolio includes some of the fastest-growing tech startups, with billion-dollar valuations and significant market influence. By establishing a stronger foothold in the U.S., Index Ventures can bridge European and American startup ecosystems while securing high-value exits.

Why European VCs Look to the U.S.

Despite Europe’s growing startup scene, it is also a very challenging location for investors. Fragmented markets, slower exits, and smaller late-stage funding rounds make scaling more difficult. In contrast, the U.S. offers deeper capital markets, a risk-taking culture, and an established path from startup to IPO.

For European VCs, expanding into the U.S. is not just about diversifying portfolios—it is about maximizing returns. The biggest tech companies, the largest funding rounds, and the fastest-growing startups are still concentrated in the U.S.

Index Ventures’ success in the American market highlights a broader trend of why European VCs are leaving. European investors are following the talent, capital, and opportunity westward. While Europe’s startup ecosystem continues to mature, its top venture firms are proving that to compete globally, they need to also have a strong presence in the U.S. market.