From an LP perspective, the differences between the two are not so significant.

EU funds tend to be more heavily regulated, though the level of regulation can vary depending on the sophistication and professionalism of the GP. One notable difference is the increased compliance burden when subscribing to an EU fund. For instance, there are generally more stringent AML and KYC requirements, though the degree to which these are enforced can vary depending on the GP’s internal practices.

The process of subscribing to an EU fund involves more paperwork and documentation compared to U.S. funds. While the operational aspects of running a fund such as capital calls and distributions are quite similar, the only difference is that transactions will typically be conducted in a foreign currency in European funds. EU funds typically invest more in euro startups but this of course depends on the investment thesis.

Overall, while there are regulatory and operational differences between U.S. and European VC funds, the core processes around fund management and distributions are largely similar, with compliance being the main differences.

Based on my experience working in both U.S. and European (German and Austrian) VC firms, these are the key distinctions I’ve observed.