This week, the European Investment Fund (EIF) released its annual European VC Survey, the largest of its kind, gathering insights from 624 general partners. While current market conditions remain challenging, optimism is growing, with half of VC managers expecting a better fundraising environment in the next year. Key challenges include poor portfolio performance, equity financing, and recruitment. Structural weaknesses in the European VC market, such as a financing gap, impact growth and exit options. However, there’s emerging interest in sectors like AI and Cleantech, indicating potential recovery in the VC landscape and improved long-term confidence in the industry.