Despite a gloomy backdrop for global venture capital, U.S. investor Adams Street Partners has made a bold move with its first dedicated European venture fund, raising over €270 million — well above its original €200 million target.
The Chicago-based fund of funds, which manages $62 billion in assets, is turning its long-running confidence in Europe into a focused commitment. While the firm has quietly invested $2 billion into more than 70 European VC funds since 2000, this marks its first formal push with a Europe-only fund.
According to Ross Morrison, a Europe-focused partner at the firm, the fund will primarily invest in new VC funds, with up to 30% earmarked for secondaries and direct startup co-investments. Speaking to Sifted, Morrison said the firm has already committed to five funds this year, and once a few closing deals are finalized, over half of the fund will be deployed.
A Vote of Confidence in Europe’s Startup Scene
Morrison is bullish on Europe’s potential. He believes the continent is now a top-tier startup ecosystem, rivaling the U.S. and Asia. “Europe is on the medal panel at the Olympics alongside the best ecosystems,” he said.
This optimism seems to be shared by limited partners. The fund saw strong support from a mix of LPs including British Business Investments, other UK and European backers, and investors from Asia. That cross-border interest reflects growing belief in Europe’s startup growth story — even amid macroeconomic tension and global uncertainty.
The plan is ambitious. Adams Street aims to back 10 to 20 general partners over the next decade, potentially supporting multiple funds from the same firms. Its broader goal? Build a portfolio with exposure to around 400 early-stage startups across Europe over the next few years.
Not Just Big Names — It’s About Backing the Right Managers
Although Adams Street has a history of supporting major players like Accel, Balderton Capital, and Index Ventures (where Morrison sits on the advisory board), the new fund isn’t limited to big names.
In fact, the firm says it’s open to emerging managers and smaller funds — as long as they come with strong pedigrees. “We’re backing individuals who’ve worked with world-class companies and have deep operational experience,” Morrison explained.
The size of a fund doesn’t matter as much as the strategy and execution. Whether it’s a full-stack VC platform or a solo GP fund, Adams Street looks for managers who understand “venture math,” especially around ownership, entry timing, and focus.
While the firm leans toward generalist investors for flexibility, it doesn’t shy away from VCs with domain expertise — such as in consumer or enterprise. Still, Morrison cautions against overly narrow strategies like being “just an AI fund,” saying it could limit access to great founders and unexpected breakout opportunities.
Secondaries — where existing fund stakes or startup shares are sold — are becoming more common. Morrison notes that while there’s a lot of current chatter, this trend has actually been building for years. Adams Street plans to allocate up to 30% of the fund to these types of deals, including continuation vehicles or GP-led secondaries.
That strategy may prove especially valuable in the current market, where IPOs are delayed and liquidity is scarce. For LPs, secondaries can provide shorter-term returns in a longer-duration asset class.
Market Headlines Don’t Tell the Full Story
With European startups delaying exits and VCs under pressure to return capital, headlines often paint a bleak picture. But Morrison sees a very different narrative behind the scenes.
From his weekly calls with GPs, he hears stories of startups quietly delivering strong growth. These companies are thriving with impressive product-market fit, fast execution, and global reach. “The operating performance at the top end of the private markets is nowhere near as bad as the public sentiment,” he said.
In short, while macro uncertainty persists, Adams Street sees long-term opportunity — and is betting big that the European venture fund ecosystem will keep maturing and delivering.
