Proskauer Research Highlights Channel Islands’ Pivotal Role In European Venture Capital

New research from global law firm Proskauer Rose LLP provides a timely snapshot of the European venture capital (VC) landscape, examining how and where managers continue to structure funds amid evolving regulatory and market conditions. 

The report analyses 32 European VC funds raised between Q4 2024 and Q1 2026, representing €8.1 billion in target commitments across strategies and fund sizes ranging from €50 million to €775 million. Of the funds analysed, approximately 39% were domiciled in the Channel Islands. The findings strengthen Guernsey’s position as a jurisdiction of choice for VC managers seeking flexible, efficient and internationally recognised fund structures.

While the research focuses on a defined cohort of larger funds, its findings are particularly striking given the scope of the sample. Many European VC funds, including a significant number established in Guernsey, operate below the €50 million threshold applied in the research. As a result, the figures are likely to understate the jurisdiction’s broader footprint within the VC ecosystem. 

Importantly, the data also indicates that, unlike other private markets asset classes, venture capital has not meaningfully gravitated towards alternative European domiciles. This consistency highlights the continued appeal of jurisdictions such as Guernsey for VC managers navigating fundraising, structuring and investor access across multiple jurisdictions. 

Managers continue to favour jurisdictions that are familiar, cost‑effective and less administratively burdensome, enabling them to focus resources on deployment and portfolio support rather than regulatory complexity. The Channel Islands’ strong showing in the report reflects how these practical factors continue to influence structuring decisions across Europe. 

Guernsey’s flexible funds regime remains a key part of that appeal, offering a range of structures with different levels of regulatory oversight. This allows managers to align fund structures with strategy, investor base and scale, whilst maintaining appropriate governance standards. 

Crucially for European-focused funds, Guernsey also continues to provide clear and established routes to market through National Private Placement Regimes (NPPR). Against the backdrop of ongoing regulatory evolution following AIFMD II, the research illustrates that NPPR remains a viable and widely used mechanism. 

Combined with recognised speed to market and access to an experienced ecosystem of legal, administrative and advisory expertise, this flexibility continues to resonate with VC sponsors operating across borders. 

As European venture capital continues to adapt to changing market and regulatory conditions, Proskauer’s research demonstrates that the Channel Islands – and Guernsey in particular – remain firmly embedded in the sector’s fund structuring landscape. Guernsey’s ability to provide efficient, flexible fund structures, proportional regulation and international connectivity continues to be a defining factor—and one that the jurisdiction consistently delivers. 

For more information about Guernsey's finance industry please visit www.weareguernsey.com.