Shamillah Bankiya on the Growth and Challenges of Europe’s Venture Ecosystem
Shamillah Bankiya, partner at UK-based Dawn Capital, recently shared insights into the European venture capital landscape and addressed common misconceptions held by American investors. Dawn Capital, a prominent firm with over $2 billion in assets under management, has backed 11 unicorns and 34 successful exits, focusing on early-stage companies from seed to Series C, currently deploying capital from its $620 million Fund V.
Bankiya, one of the few Black women venture partners in Europe, has invested in AI company Qogita and marketplace Fonoa. She credits her entrepreneurial family background and eagerness to learn as key motivators for her career in venture capital.
“Venture lends itself to that extremely well,” she said. “So in some ways, yes, like for the last 20 years, I wanted to be an investor of some sort.”
Shifting Dynamics and Increasing US Interest
Bankiya notes that Europe has long fostered exciting innovation, particularly in AI and fintech, citing companies like Collibra, Dataiku, Lovable, and Klarna—the latter having recently completed a high-profile IPO in New York. What has notably changed, she explained, is the surge in American investor interest in European startups, a trend accelerated by the COVID-19 pandemic.
Despite this momentum, she acknowledges structural challenges within Europe’s capital markets. “Europe is a bunch of large disaggregated exchanges,” Bankiya said, highlighting how fragmented stock exchanges across countries create an imbalance that complicates IPO processes for European founders.
Regulatory hurdles remain another significant barrier. Europe’s stringent regulatory environment can delay or deter local public listings, prompting some companies to pursue IPOs abroad.
Debunking Stereotypes and Looking Ahead
Addressing the stereotype that European investors take lengthy summer breaks, Bankiya emphasized the misconception. “It’s a little noise around that, but again, we will see the outcome proof from themselves,” she said. “We’re going to see this interesting pattern of amazing European companies coming out and winning globally, as they’ve always won.”
Bankiya’s comments reflect a broader confidence in Europe’s startup ecosystem, underscoring ongoing innovation and increased international engagement despite regulatory and market fragmentation challenges.
Dominic-Madori Davis is a senior venture capital and startup reporter at TechCrunch, based in New York City.
FinOracleAI — Market View
The increasing attention from US investors toward European startups, especially in AI and fintech, is a positive signal for the European venture ecosystem. Dawn Capital’s strong track record and Fund V deployment indicate continued capital flow into early-stage innovation. However, persistent fragmentation of European stock exchanges and regulatory complexity pose risks to IPO activity and local capital market development. Market participants should monitor regulatory reforms and potential efforts to unify or streamline European exchanges, as these could significantly impact exit opportunities and valuations.
Impact: positive
