Executive Summary
US investors continue to increase their allocation to European assets in 2026, driven by attractive valuations, world-class innovation ecosystems, and the growing maturity of European venture capital markets. This study, based on Crossover Consulting's proprietary transaction data and interviews with 120 institutional investors, examines the key trends shaping transatlantic capital flows and identifies the sectors and geographies attracting the most significant US investment.
Our analysis reveals that US venture capital investment in European startups reached $48 billion in 2025, a 28% increase over the prior year. More significantly, the composition of this investment is shifting: US investors are increasingly participating in later-stage rounds (Series C and beyond) and pursuing direct acquisitions of European technology companies, rather than limiting themselves to early-stage exploration.
Key Findings
The technology sector continues to dominate transatlantic investment flows, accounting for 42% of total US investment in Europe. Within technology, enterprise SaaS, artificial intelligence, and cybersecurity are the three subsectors attracting the most capital. Germany remains the largest recipient of US investment in continental Europe, followed by France and the Netherlands.
Healthcare and life sciences represent the second-largest sector, with US investors particularly attracted to European clinical trial infrastructure, the EMA's regulatory framework, and the strength of academic research institutions in Germany, Switzerland, and the UK. The sector saw $12.4 billion in US investment in 2025.
The clean energy and climate technology sector emerged as the fastest-growing category, with US investment increasing 56% year-over-year. The EU's ambitious Green Deal targets and associated subsidies are creating investment opportunities that complement US investors' existing clean energy portfolios.
Implications for European Companies
European companies seeking US investment should recognize that American investors increasingly expect US-style governance, reporting standards, and growth metrics. Companies that proactively adapt their financial reporting, board structures, and investor communication to align with US expectations significantly improve their chances of securing transatlantic capital.
The full study is available to clients and qualified institutional investors. Contact us for access.