Europe VC funds jump ahead of US counterparts

Published 21 December 2023


A new PitchBook analysis on VC performance has been published. Key takeaways include:

  • The historical outperformance of US venture funds over European counterparts has reversed in the recent downturn, with European funds reporting a slightly better one-year IRR of -14.2% compared to -16.5% for US funds.
  • Challenges in the global VC fundraising environment impact both US and European funds, but higher valuations in the US may lead to more significant portfolio markdowns during downturns.
  • Despite the recent trend reversal, US venture funds maintain advantages due to the larger size and maturity of the market, providing access to a wider pool of startups, more developed infrastructure, and a broader base of LPs, including pension funds.

Read the full article here.