" less of the wild valuation-speculation. I'm not sure that's a bad thing."
This is one of the classic misunderstandings of European entrepreneurs and investors.
In finance - things with low risk, tend to produce low yield. This is generally well established because there are a lot of 'eyes on the info'. For example, we can calculate how much it costs to extract a new shallow water Oil find. Most of the variables are known.
Though it's not so clear in early-stage, the rule will still apply because the easy hanging fruit generally will be culled when there are intelligent actors.
So - you need to take on risk. Otherwise, you're probably not attacking a big opportunity.
European VC's usually come out of the world of finance - in fact, VC is considered a part of 'Private Equity'. In PE or big funds, they invest in one or many companies, and expect x% return. Some more, some less.
In PE, if a company were to go bankrupt, it would wipe out the portfolio profits. Imagine if Warren Buffet put money in CN Rail and it turfed.Bad.
But in VC - you get 9 fails and 1 home run. The fails are hard to swallow but they are an inherent part of the system.
Culturally, Europeans especially Germans are not good with that kind of failure. It can be seen as a permanent mark on one's competency and status. In Austria, up until recently, a CEO who put his company bankrupt could face criminal charges.
All of this makes sense in a culture of high standards and expectations, coupled with social solidarity of workers (i.e. you but us out of jobs, you pay!).
European LP's are not used to losing their money. European workers are not used to equity, to losing their jobs, to total instability.
European BigCo's often do not recognize value in startups. The culture in Europe is very protocol and status oriented - you're 'value' is a function of the prestige and power of the entity you represent. Ramshackle, scruffy coders showing you 'you can do something amazing' is just less potent an opportunity than it is in the US.
And of course, the exit opportunities are not there.
And then so many other systematic issues like the fact almost nobody will learn to speak German, immigration etc. etc.. - all of this makes it that much harder.
Much of what I am saying is stereotypical of course, but it's real enough.
I think Europe should take their disadvantages and turn them into advantages and use their 'longer scope of vision' to do value creating things.
Europe is good at getting people together and going 'big projects' that have a long term view. Like CERN. And EU treaties.
I can see some very powerful things concerning money - European countries are smaller and more nimble. Sweden does some cool stuff. What if a Swedish Crown corporation enabled a digital currency that could be used globally? Because of the integrity of the institution, and the fact that it's backed possibly by a 'real economy' - it could be a very powerful export. Much in the same way if you make 'jet fighters' you don't just go and sell them you need your countries diplomatic corps to work with you.
EDF in France (Energy) is tied closely to government, and that kind of stuff - i.e. nuclear, generally needs some hefty scale.
But also expect that many of the gains in such situations will be socialized, and maybe not come in the form of crazy billionaire status for founders.