Educational only — not investment, legal or tax advice.

Founders on both sides of the Atlantic ask the same question: should I raise where I am, or go where the money is? The answer depends on your stage, your market and your plans, but the two ecosystems really do work differently.

The size gap

Crunchbase reported $17.6 billion of European venture funding in Q1 2026, up nearly 30% year over year, with AI taking more than half of the total for the first time. Deal volume, though, fell about 40% year over year: more money into fewer companies. For comparison, Crunchbase counted $510 billion of global venture funding in the first half of 2026, with the US home to the largest rounds by far.

The practical meaning: US investors can usually write larger cheques at higher valuations, and there are more of them at every stage.

How the process differs (generalisations; every fund is different)

	Europe	US
Typical early instruments	Priced rounds and convertible loans are common; SAFE-style instruments vary by country	Post-money SAFEs dominate pre-seed and seed
Valuations	Generally lower at the same stage	Generally higher
Public co-funding	Large role: EU programs like the EIC Accelerator, plus national agencies	Smaller role outside SBIR/STTR and specific sectors
Legal setup	Varies by country; often notarised documents and local corporate law	Standardised documents, usually a Delaware corporation
Pace	Often slower, more diligence up front	Often faster at the top of the market

When to look at US investors

• Your customers or market are primarily in the US.
• You need a round size or valuation European investors can’t match.
• You plan to scale a US go-to-market team soon.

US investors may ask you to set up a US parent company, which costs time and legal fees. Do it when you have a real reason, not just to signal ambition.

When to stay local first

• Your early customers are in Europe.
• You can combine public funding (grants or the EIC) with a local lead to de-risk the business.
• You want investors who understand your regulatory environment.

Many companies do both in sequence: a European seed with public co-funding, then a US-led Series A once US traction exists.

From the investor’s side of the table

I have worked on transactions in Europe and Latin America and advised international founders setting up in Portugal, often with US investors in the mix. The founders who navigated it best decided where their main market was first, and let that decide where to raise.

The short version

The US has bigger cheques; Europe has public co-funding and lower competition for good deals. Raise where your customers are, and cross the Atlantic when your traction gives you a reason.

Sources

• Crunchbase News: AI drives Europe’s second straight quarter of funding gain (14 Apr 2026)
• Crunchbase News: Global startup investment hit record $510B in H1 2026 (2 Jul 2026)
• European Innovation Council: EIC Accelerator

Written by Fabian Cisneros. Educational only — not investment, legal or tax advice. See the full disclaimer.