The problem in Europe for start ups is rarely the supply side, it's the buy side; large EU companies don't buy start ups at the rate that large US companies do.

The problem in Europe for start ups is rarely the supply side, it's the buy side; large EU companies don't buy start ups at the rate that large US companies do. This restricts the volume of exits, and therefore restricts the available funding; organisations that fund VCs normally get their money back in 5 to 10 years, but with less exits that means that VCs don't raise as often (which over averages means collectively they don't raise as much) because they don't get back as often.