Contrary to popular narrative, Europe is not short of cash. In aggregate, European households save $1.4 trillion a year—substantially higher than the $800 billion figure for U.S. households. According to data platform Dealroom, European investors in 2025 were sitting on $31 billion of dry powder, waiting to be invested.
But where American capital is one of the U.S. economy’s great strengths, famously accelerating business growth there, Europe’s capital doesn’t deliver in nearly the same way.
