Analysis

December 19, 2025

The top VC predictions for Europe in 2026

Europe’s VCs expect an influx of Chinese tech into industrial segments in Europe, a defence bubble burst and opportunities for angel investors next year


Anne Sraders

5 min read

Sophia Bendz, partner at Cherry Ventures. Courtesy of Cherry Ventures

It’s been a year of contradictions for Europe’s VCs. On the one hand, buzzy sectors like AI and defence drew in massive amounts of money — including from big US investors competing with local VCs. On the other, many investors still struggled with a lack of liquidity which made LPs wary or unable to re-up — leading to a slump in new fundraises and the continued popularity of secondaries. 

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Anne Sraders

Anne Sraders is a senior reporter at Sifted, based in Berlin. She covers the venture capital industry and deeptech startups, including robotics, spacetech and defence tech. She also writes Sifted's weekly VC newsletter Up Round. Follow her on X and LinkedIn

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