The European venture capital landscape is undergoing a shift, with a latest firm, Operator Circle, launching to address a perceived gap in operational expertise among investors. Backed by a collective of seasoned executives from successful European tech scaleups, Operator Circle aims to identify and support the continent’s next generation of “decacorns” – companies valued at over $10 billion. This move comes as Europe continues to cultivate innovative companies, but faces challenges in securing sufficient late-stage funding to fuel sustained growth.
For years, critics have pointed to a structural imbalance in European venture capital, citing a shortage of large investment checks and a lack of investors with firsthand experience scaling high-growth businesses. Operator Circle directly tackles the latter issue, positioning itself as a venture firm built by operators – individuals who have navigated the complexities of building and scaling companies from Series B funding through to exit. The firm’s core thesis rests on the belief that this lived experience provides a unique advantage in identifying founders with the potential to achieve decacorn status.
The launch of Operator Circle reflects a growing trend of operators transitioning into the venture capital world, a model that has gained traction in the United States with firms like Andreessen Horowitz. However, this transition has been slower to develop in Europe, largely due to a less mature exit ecosystem and a relatively recent emergence of European decacorns. The firm’s founders believe that the current generation of experienced European tech executives is now substantial enough to significantly impact the investment landscape.
Addressing the European Scaleup Funding Gap
European tech companies are increasingly attracting attention from global investors seeking diversification beyond the United States, where valuations have reached all-time highs. According to Dealroom, capital flows from key Asian markets into Europe, the Middle East, and Africa (EMEA) are expected to remain strong, potentially matching the $3 billion invested in 2024 and the $2.9 billion invested in 2023. Phoenix Court, recognized as the #1 investor in EMEA at backing high-growth companies by Dealroom’s Investor Power Law Ranking, is championing this new class of European tech.
Despite this growing interest, a significant funding gap remains. Dealroom estimates a $57 billion scaleup funding gap in the EMEA region compared to the Bay Area. This disparity highlights the need for increased capital availability at later growth stages to support European companies as they scale. Operator Circle aims to fill this void by providing not only financial investment but also the operational guidance and support that founders need to navigate the challenges of rapid growth.
The “Thoroughbreds” and the Rise of Revenue-Focused Investing
The emergence of Operator Circle coincides with a broader shift in investor focus from speculative valuations to proven performance. A new metric, the “Thoroughbred,” has gained prominence, identifying fast-growing tech companies generating over $100 million in annual revenue. Dealroom’s Thoroughbreds 100 EMEA list, released in August 2025, collectively generated $168 billion in revenue over the past year and provides 367,000 jobs across the region. Fintech dominates this list, with 30 companies included, followed by Enterprise Software (25) and Health & Biotech (14).
This emphasis on revenue generation reflects a growing desire for sustainable growth and financial discipline among investors. As companies remain private for longer, the focus is shifting towards driving economic prosperity through improved productivity, job creation, and tax contributions. The Thoroughbreds 100 represent 27% of EMEA’s $5.6 trillion tech ecosystem, demonstrating the increasing importance of revenue as a key indicator of success.
Operator Circle’s Approach and Founding Team
Operator Circle’s strategy centers on leveraging the collective experience of its founding team and backers. The firm’s thesis is that individuals who have successfully scaled billion-dollar companies possess a unique understanding of the challenges and opportunities that founders face. This insight allows them to identify promising companies and provide targeted support to accelerate their growth.
Enzo Wälchli, former chief commercial officer at Swiss robotics scaleup ANYbotics, joins Operator Circle as a general partner. ANYbotics, known for its advanced robotic systems, has experienced significant growth in recent years, providing Wälchli with valuable experience in scaling a complex technology business. The firm’s backing also includes dozens of other senior executives from leading European tech companies, bringing a wealth of operational knowledge to the table.
While the exact fund size of Operator Circle remains undisclosed, the firm’s launch signals a growing recognition of the value of operational expertise in venture capital. The firm’s founders believe that their hands-on experience will enable them to identify and support the next wave of European decacorns, helping to drive innovation and economic growth across the continent.
Navigating Fragmented European Markets
The executives backing Operator Circle bring direct experience navigating the specific challenges of scaling in fragmented European markets. These challenges include multilingual sales, multi-regulatory compliance, and a talent ecosystem that, while improving, still lags behind Silicon Valley in certain sectors. The firm’s understanding of these nuances positions it to provide valuable guidance to founders as they expand their businesses across Europe.
The operator-to-VC model isn’t without its debate. While data doesn’t definitively prove operators are better investors than traditional analysts, the model offers a unique advantage: pattern recognition. Operators can identify organizational stress fractures that emerge at specific growth stages and recognize founders who have proactively addressed these potential issues. Operator Circle’s launch is a bet that the most effective guide for scaling a company is someone who has already successfully climbed the mountain.
The firm’s approach represents a departure from the traditional venture capital model, where partners often come from financial backgrounds. By prioritizing operational experience, Operator Circle aims to provide founders with a more valuable and relevant partnership, increasing their chances of success in the competitive European tech landscape.
As European tech continues to mature, the demand for experienced investors with operational expertise is likely to grow. Operator Circle’s launch is a significant step towards addressing this need, potentially unlocking new opportunities for innovation and growth across the continent. The firm’s success will depend on its ability to identify and support the next generation of European tech leaders, helping them to build and scale companies that can compete on a global stage.
The next key development will be observing Operator Circle’s investment strategy and the performance of its portfolio companies. Further details regarding the firm’s fund size and investment focus are expected to be released in the coming months. We will continue to follow this story as it unfolds, providing updates on the evolving European venture capital landscape.
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