The Great Shift: How Europe's Venture Capitalists are Exchanging Suits for Hoodies

There’s a palpable shift happening in the European venture capital world. Once known for its opulent boardrooms, slick power-suits, and aggressive deal-making tactics, many VCs are trading in their boardroom seats for a closer look at startup operations. It’s an intriguing transition that comes at a time when many of these investors are looking to inject a serious dose of experiential learning into their careers. For many, the move represents their first foray into startup life. As opposed to their US counterparts, the number of European VCs with tangible operational experience is notably low, said to be around a mere 1.8%. This lack of operational insight means that many investors struggle to provide accurate and beneficial tips on startup growth. It’s this unsettling conundrum that has sparked an exodus of VCs from the boardroom to the startup world. As this trend gathers pace, it’s clear that the early-career investors are eager to connect more closely with the startup ecosystem, seeking the hands-on experience that sitting behind a mahogany table simply can’t provide. There’s an undeniable sense of urgencywoven into this shift, and it’s driven by the dwindling status of the VC landscape in Europe. The number of active VC firms has plunged 30% since 2022, while fundraising figures retreated from €34bn in 2022 to just €21bn in 2024. This tectonic shift has not just seen VCs relishing in the pull of the startup world, but also startup entrepreneurs preferring to work with executives who have seen their fair share of the ‘hustle and grind’, those who have truly been in the trenches. The transition from VC to operator is an incredible journey. As VCs-turned-operators put it, taking action has a very different meaning in the startup world. If something doesn’t pan out as expected, it’s your responsibility to iterate, experiment, and try again. This shift towards operational roles among VCs seems to be not just a career choice but a generational shift, a new orientation towards a more action-oriented, hands-on approach to startup growth. As startups continue to redefine the business world, it seems there’s no better time to roll up your sleeves and dive deep into the operation of businesses. The drive, the urgency, and the action - that’s what today’s VCs-turned-operator’s days are made of. The boardrooms might be quieter, but the startup world has never been livelier.