P101 founder predicts wave of VC mergers across Europe

Key Takeaways

• P101's acquisition of PranaVentures marks a rare VC-to-VC deal in Europe, signaling broader consolidation ahead
• Smaller European VC firms face mounting pressure from LPs who prefer larger, established fund managers
• Founders may see fewer but larger funds competing for deals in the next 12-18 months

Milan-based venture firm P101 has acquired Italian seed investor PranaVentures, and its founder Andrea Di Camillo expects this type of VC-to-VC deal to become common across Europe. The firm, which manages €633 million in assets, sees consolidation as inevitable for a market with too many undifferentiated small funds chasing limited LP capital.

Why are European VCs starting to merge?

Di Camillo frames the situation bluntly: European venture has matured, and maturity brings consolidation. Limited partners increasingly prefer writing larger checks to fewer managers with proven track records. That math punishes sub-scale funds.

"In the next decades, big actors will absorb smaller emerging and early managers at a sustainable price," Di Camillo told Sifted, adding that he expects this pattern to play out over the next 10-15 months. The reasoning is straightforward. LPs want simplicity. Managing relationships with dozens of small funds costs time and overhead. A handful of larger, diversified managers is easier.

P101 and PranaVentures had worked together for 10 years before the deal, sharing deal flow and co-investing. That history made integration smoother. The combined entity now operates a single platform with approximately €810 million in assets under management.

How does this differ from the US?

VC consolidation has happened before, primarily in the United States. Sequoia Capital's acquisition of Surveyor Capital in 2022 and various team absorptions by Insight Partners set precedents. But Europe has seen far fewer such deals. Di Camillo calls it a function of "lack of tradition" on the continent, where most venture funds remain young by global standards.

The European VC industry largely emerged after 2010. Many first-generation fund managers are still on their second or third fund. They haven't yet faced the succession and scale pressures that drove US consolidation in the 2010s. That's changing.

What does VC consolidation mean for founders?

Fewer funds sounds bad for founders seeking capital. But the picture is more nuanced. Di Camillo argues that M&A among VCs will create "stronger combinations with new capacity to invest." Merged entities can write larger checks, provide more resources, and maintain relationships across stages.

The downside: less diversity in investor perspectives. When ten seed funds become four, founders lose optionality. The remaining funds also gain leverage in negotiations. Expect tighter terms and higher bars for winning investment committee approval.

P101 backs companies in Italy and broader Europe, with LPs including CDP Venture Capital, BEI European Investment Bank, and Fondazione Cariplo. The firm closed a €451 million fund in April 2024, one of the largest raises by an Italian manager. That scale advantage is precisely what Di Camillo believes smaller peers cannot match.

Which funds are most vulnerable?

Di Camillo identifies a specific profile: emerging managers without differentiated strategies or strong LP relationships. Funds that raised once during the 2021 boom but struggle to return capital or raise a follow-on fund face hard choices. They can wind down, merge, or watch their partners leave for larger platforms.

PranaVentures fit a different category. It was "more focused on what it's good at," according to Di Camillo, with "very strong relationships, valuable assets, successful investments." The merger preserved that value rather than letting it dissipate through a slow wind-down.

VCs rarely discuss their own M&A publicly. The P101-PranaVentures deal is notable partly because Di Camillo chose to speak openly about the rationale and his expectations for the market. Most fund mergers happen quietly, often framed as "team expansions" rather than acquisitions.

What comes next for European VC structure?

Di Camillo predicts acceleration. The 10-15 month timeline he cites would put peak activity in late 2025 or early 2026. By then, fund managers who raised in 2021 will face deployment pressure, vintage concerns, and LP scrutiny. Some will merge. Others will simply stop.

For founders, the practical implication is clear: your investor base may look different by the time you raise your next round. The seed fund that led your A round might be part of a larger platform. Your board observer might report to a new partnership. Build relationships with individuals, not just firm brands.

Frequently Asked Questions

Why are VC firms merging in Europe?

Limited partners increasingly prefer larger fund managers with established track records. Smaller funds struggle to raise follow-on capital, making consolidation or wind-down their primary options.

How does VC consolidation affect startup fundraising?

Founders may face fewer potential investors but those remaining will have larger check sizes. Competition for deals remains, but founders lose some negotiating leverage when fewer funds exist.

What is P101's assets under management?

P101 manages approximately €633 million in assets. Combined with PranaVentures, the platform reaches roughly €810 million AUM.

Are VC mergers common in Europe?

No. VC-to-VC acquisitions remain rare in Europe compared to the US. P101's acquisition of PranaVentures is notable partly because few European precedents exist.

When will more VC mergers happen?

P101 founder Andrea Di Camillo expects significant consolidation activity over the next 10-15 months, with peak deals likely in late 2025 or early 2026.

Source: Sifted