Opinion: Europe’s VCs must embrace risk — or resign the AI era to US control

The article highlights the concerning trend of European AI startups losing ground to their American counterparts, and it attributes this issue to the risk-averse approach of European venture capitalists (VCs). According to the European Commission, only 5% of global venture capital is raised in the EU, while the US attracts more than half and China takes 40%. Despite Europe's substantial household savings of €1.4tn per year, nearly twice as much as in America, very little of this money is channeled into startups, even with various incentives in place, such as the UK's EIS tax relief for business angels. The article suggests that European VCs are too slow and cautious in their investment decisions, hindering the growth and competitiveness of European AI startups in the global arena. The article calls for European VCs to embrace a more risk-taking approach if they want to ensure that the AI era is not dominated by the US.