The European private equity and venture capital scene is evolving rapidly, with a clear emphasis on sustainability, technology, diversification, and strategic positioning discussed at the Cyprus International Funds Summit.

Cyprus and the regional startup ecosystem are catalyzing value creation, with investors and startups forming synergies as the global VC market stabilizes and Europe eyes an upward trajectory beyond the $10 billion mark.

Greece-origin investors like VentureFriends.vc illustrate how European startups mature into international leaders, leveraging strategic support to compete on a global stage.

Sustainability and technology remain central, as ESG and impact investing drive portfolio performance in AI, clean energy, and healthcare, supported by policies like the European Capital Markets Union to steer capital toward sustainable growth.

A shift toward longer-term, strategic investing is notable, with investors engaging closely with startups through to exit, moving away from racing bets to more deliberate capital allocation.

European VC is historically capable of outperforming private equity over the long term and tracks US market performance, though it shows higher return dispersion and lower management fees than US funds, with fundraising normalizing and direct investment activity more subdued than in 2021–22.

Evergreen funds from majors like Schroders show direct investment exposure, strong growth potential, non-progressive capital calls, and liquidity features such as monthly subscriptions and quarterly redemptions up to 5% of NAV, with relatively low minimums.

Overall, the market is balancing opportunities and challenges as participants position themselves for sustainable growth in a shifting European and global VC landscape.