U.S. investors keep backing Europe despite Sequoia’s London exit

Sequoia Capital’s departure from London does not signal a broader retreat by U.S. investors from European startups. The firm says it can maintain its European focus from the Bay Area, while Brighton Park Capital, Sixth Street Partners and other American investors have opened or expanded London offices. Andreessen Horowitz also remains engaged in Europe after closing its London office last year.

European startups have attracted $58.7 billion in venture capital so far this year, with U.S. firms supplying 70 percent, according to PitchBook. AI companies account for 68 percent of investment, exceeding an initial forecast of 50 percent. Sustained funding could push investment beyond the records set in 2021-22, despite market volatility and concerns about technology valuations.

Lower valuations, particularly among AI businesses, and opportunities in less saturated markets are helping attract American investors. European founders also seek U.S. funds for their greater appetite for risk, operational experience and guidance on entering the American market. Brighton Park participated in a joint $60 million investment in Orbital, a British startup automating real estate due diligence. Gravitee, which helps businesses manage and secure AI agents, plans to raise a further $150 million after securing $60 million last year.