Silicon Valley’s New Playbook: American VCs Fan Out Across Europe

Andreessen Horowitz, one of America's most powerful venture capital firms, is no longer content to wait for European startups to mature before writing checks. The Silicon Valley giant is actively hunting across the continent for early-stage companies, competing directly with local investors who have traditionally held the advantage through proximity and market knowledge.

The strategy marks a significant departure for a16z. Rather than waiting for European founders to approach them or for companies to reach later funding stages, the firm is now planting scouts on the ground in key tech hubs from Stockholm to Berlin. Gabriel Vasquez, a partner at a16z, recently revealed he took nine flights from New York to Stockholm in a single year to find the next Swedish unicorn. This wasn't just about visiting existing portfolio companies—it was about identifying future winners before they become obvious to everyone else.

Background

For decades, European venture capitalists have argued that their local knowledge, founder networks, and understanding of regional regulations give them an edge that American money simply cannot replicate. They know the founders, understand the regulatory landscape, and have built relationships over years. When a startup needs advice on navigating European data protection laws or connecting with local customers, local VCs have traditionally been the natural choice.

But the venture capital landscape is shifting. Five European startups hit unicorn status in January 2026 alone, signaling renewed investor confidence in the region's startup ecosystem. Companies like Aikido Security from Belgium and Cast AI from Lithuania proved that Europe can produce top companies that compete globally. At the same time, a16z announced new funds totaling $15 billion across different investment strategies, giving the firm significant firepower to deploy globally.

This combination—strong European deal flow and massive capital available—created the perfect opportunity for a16z to rethink its European strategy.

Key Details

The Scout Network Approach

a16z isn't opening traditional offices across Europe. Instead, the firm has built what it calls a "scouting network" of local advisors and successful founders who serve as eyes and ears on the ground. In Sweden, for example, a16z partnered with Fredrik Hjelm, founder of Voi, and Johannes Schildt, founder of Kry, turning them into scouts who help identify promising local talent.

This approach gives a16z early access to deal flow. When a startup is just getting started, before it has even approached investors, the firm's scouts can spot it through their networks. They can identify companies coming out of top-tier accelerators like Stockholm's SSE Labs, the startup incubator of the Stockholm School of Economics, which has produced multiple successful companies.

The strategy is already producing results. In January 2026, a16z led a $2.3 million pre-seed round into Dentio, a Swedish startup using artificial intelligence to help dental practices manage administrative work. While a modest check for a firm of a16z's size, it demonstrates the firm is willing to invest early and small if it believes in the founder and market opportunity.

Why Stockholm?

Stockholm has quietly built one of Europe's most productive startup ecosystems. The Swedish capital has produced global hits like Klarna and Spotify, while maintaining a steady pipeline of early-stage companies. For a firm hunting the next European breakout company, it's a logical starting point. a16z has previous experience with Swedish founders, having backed Skype, which was cofounded by Swedish entrepreneur Niklas Zennström.

"We spend a lot of time developing a deep understanding of specific markets and knowing where innovation is emerging. In Sweden, that has meant closely tracking ecosystems like SSE Labs and the companies coming out of it," Vasquez said.

Stockholm also represents a broader pattern. a16z partner Vasquez pointed to examples like Black Forest Labs in Germany and Manus, a Singapore-based AI startup recently acquired by Meta, as evidence that "great global companies are being born abroad and scaling quickly."

The Challenge: Trust and Value

European founders have historically been wary of taking Silicon Valley money too early. They worry about losing control of their companies or being pressured to relocate to the United States. a16z faces the task of proving it can add value beyond simply writing a check.

Dentio's founder, who went from zero meetups and zero investor outreach to landing a16z backing, illustrates how the firm operates. Word of the startup spread through referrals and founder networks rather than traditional investor pitches. a16z's scouts identified the company and made the connection.

For a16z, success in Europe depends on offering more than capital. The firm needs to provide introductions to American customers, operational expertise, and help with international expansion. The firm's brand and deeper pockets can offset some of the home-field advantage that local VCs possess, but only if European founders believe a16z truly understands their markets and can help them scale globally.

What This Means

The a16z European expansion signals a broader shift in venture capital. As European startups mature and prove they can compete globally, American investors are no longer content to watch from across the Atlantic. The next wave of global tech leaders may very well come from Europe, and a16z wants to be there when they do.

For European venture capitalists, this represents increased competition at exactly the stage where they have traditionally dominated—the early seed and Series A rounds where local knowledge matters most. American firms with deeper pockets and global networks are now directly competing for the same deals.

For European founders, the expanded presence of a16z and other American VCs creates more funding options and potentially more pressure to scale quickly. European founders will need to decide whether the capital and global connections offered by Silicon Valley firms outweigh the advantages of working with local investors who understand their specific markets.