But it is really simple. In US they have a higher appetite for gambling.
And money in Europe is old, and hard fought for. We still have rich people who's families made their fortune in the 11th Century.
Money in the US is new. And easily lost. The whole show is less than 250 years old. And that star is already on the wane.
Having been on this merry-go-round in Europe, I can tell you that focusing on downside protection frequently results in poor decision making that activity prevents upside growth. In other words, worrying about the downside so much, makes it a self-fulfilling prophesy.
I’ve always thought it was stupid for VCs to worry about downside protection. Either you’re playing the VC game, and having companies go to zero is just part of the plan, or you’re not. Not being able to stomach the worst case scenario when you invest, just means you waste time that would be better spent trying to achieve the rocketship outcome everyone is looking for.
The US is just far wealthier than Europe.