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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.

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 VC industry and deeptech startups. She also writes Sifted's weekly VC newsletter Up Round. Follow her on X and LinkedIn

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