Big US funds Sequoia and Microsoft's M12 are honing in on Europe but struggling to poach top investment talent
- Two major US startup investors, Sequoia Capital and Microsoft's M12, have struggled to recruit talent in London as each plots expansion to Europe.
- Around a fifth of investment in European startups comes from US investors, according to the latest report from European VC Atomico.
- According to three sources, Sequoia held talks with partners at VC firms Accel and Index Partners for its upcoming London office - but neither decided to join.
- One source told Business Insider that "all the good people have already been tapped up or locked in".
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Two big US venture capital firms looking to expand in Europe are struggling to recruit top talent in London to run their operations, industry sources told Business Insider.
Sequoia Capital and Microsoft's venture fund, M12, approached leading European venture capitalists in the hopes of luring them to their London offices.
According to European venture capital firm Atomico, US funds provide an increasing tranche of European startup funding with 19% of all European funding rounds in 2019 including a US backer. M12 opened a new office in the city in January, while Business Insider reported in November that Sequoia had hired a talent search firm ahead of a widely expected London launch.
According to three sources familiar with the matter, Sequoia approached Accel partner Luciana Lixandru to join its fund. Lixandru was an early investor in Deliveroo and a rising star at Accel's European arm. It also approached Index Ventures' Jan Hammer for a potential role at the firm. Ultimately, neither decided to jump ship.
"I think they're both happy where they are [and] they see themselves as future leaders at their own firms," one source told Business Insider. "When you're already here making deals, why would you want to be in a satellite office, jumping on Skype at midnight and having to fly out to California every other week?"
Meanwhile, M12 sought a replacement for Itxaso del Palacio, who was previously responsible for setting up its London office, following her departure in 2018.
M12 is said to have approached a number of leading European VCs, including Kindred Capital partner Chrysanthos Chrysanthou, all of whom declined the role.
According to one source, the failure to recruit a local figurehead resulted in Matthew Goldstein, a founding partner at M12, moving over from California to head up the London operation.
"They asked everyone but couldn't get the right person on board, so instead Matt relocated from the US," one source said.
Asked why top firms were struggling to poach talent, another added: "I'd say that there has been an explosion in VC funds [and] all the good people have already been tapped up or locked in."
A spokesman for Index Ventures said: "We believe our people are the best in the business, so it would be surprising to us if they had not been approached regularly by other firms.
"We are proud to count Jan among the talented team that is supporting the most ambitious entrepreneurs around the world."
When approached by Business Insider, Chrysanthos and representatives at Sequoia, M12, and Accel declined to comment.