American investors poured into Europe in the early 2020s, but sentiment has shifted. Today, many U.S.-based VCs believe San Francisco is where AI innovation thrives. However, FirstMark, an American venture capital firm, argues that Europe remains underrated.

Speaking with Sifted, a partner at FirstMark noted that while some investors have pulled back, others are beginning to recognize European opportunities again. The firm has been active in European markets and continues to see potential. "Europe is underrated right now among American investors," said the FirstMark representative. They added that despite the prevailing narrative around Silicon Valley, European startups and ecosystems offer compelling prospects.

FirstMark has backed several European companies and remains engaged with local founders. The shift in perception reflects broader trends in global venture capital, where geographic diversification is gaining traction. As AI and other technologies mature, investors are reevaluating regional strengths.

FirstMark believes Europe's talent pool and innovation capacity make it a strong contender for future growth.