From Utah to Europe: How Cross Creek Is Rethinking Venture Allocations and Eyeing Biotech's Quiet Boom
In an insightful conversation in Amsterdam, Karey Barker, Founder and Managing Director of Cross Creek, offered a candid perspective on how one of the U.S.'s most disciplined venture fund of funds is rethinking its global strategy — with growing interest in Europe.
Based in Salt Lake City, Utah, Cross Creek started nearly two decades ago with a unique blend of late-stage direct investments and public market heritage. Over the years, it evolved into a venture platform, combining direct investing with a robust fund of funds model that prioritizes visibility into the broader venture landscape.
"Our favorite funds could raise billions, but choose not to," said Barker, outlining Cross Creek's preference for core managers with consistent, long-term outperformance and fund size discipline. Most of their core GPs manage between $200M and $500M per fund, maintaining strategic focus and avoiding the dilution of returns seen in oversized vehicles.
A Growing Appetite for Europe
Although Cross Creek's mandate allows only up to 20% of its capital to be invested outside the U.S., the firm is increasingly drawn to Europe. Barker noted a noticeable uptick in on-the-ground activity across the continent, especially in sectors where Cross Creek sees opportunity: software, cybersecurity, deep tech, and healthcare.
"Europe’s deep tech talent is amazing," Barker shared. "And while the ecosystem hasn’t always been mature enough for funds like ours, that’s clearly changing."
Healthcare and biotech, in particular, are catching the firm’s attention. Although traditionally underweight in these sectors, Barker acknowledged that biotech has become one of the strongest sources of liquidity across their platform, delivering approximately 80% of their recent returns.
European VC's Unique Challenges
Despite the opportunity, Barker pointed out several structural hurdles for LPs evaluating European GPs:
Fragmentation: Unlike the U.S., Europe lacks uniformity in regulation, language, and legal frameworks. "Pan-European funds sound good in theory," Barker said, "but executing across such diverse markets requires true local depth."
Regulatory complexity: Government-backed capital, often constrained by local mandates, can limit the operational flexibility of VC funds.
Capital base: Europe still lacks a deep pool of institutional venture LPs. Corporate pensions and insurance firms, which were crucial to the U.S. venture ecosystem's growth, have historically faced regulatory limitations in Europe. Barker noted this is beginning to change, particularly in the UK and the Netherlands.
What Cross Creek Looks for in Managers
Cross Creek segments its GP relationships into two categories: core managers and focus managers. While the former are proven, long-standing managers with a history of strong performance, the latter are smaller, sector-specific spinouts with deep domain expertise.
"We don't usually call them 'emerging managers'," Barker said. "They're often veteran investors who’ve spun out to do something more focused — whether that’s cyber, fintech, or a specific region."
First-time funds are rare for Cross Creek, but they occasionally back them when the spinout comes from a team they already know and trust.
The Elusive IPO Window
Asked about the state of liquidity and potential for IPOs in 2025, Barker was cautious: "Every time we think it’s about to open, something geopolitical gets in the way."
She warned that many of the so-called unicorns from 2021-2022 are no longer high-growth, IPO-ready candidates. "A 15% growth, breakeven company isn’t going public anytime soon." However, Barker emphasized that biotech has been the quiet exception, with steady M&A and IPO activity continuing even amid wider tech volatility.
"Europe is a strong player in biotech, with great universities, talent, and big pharma activity," she added. "It’s one of the sectors we want more exposure to going forward."
Final Thoughts
Cross Creek's evolving view of European venture is pragmatic, not reactive. With a focus on strategic fund sizing, local access, sector expertise, and liquidity discipline, the firm is positioning itself to capture long-term value in a region many still underestimate.
For European GPs seeking capital from U.S. LPs, the message is clear: focus, depth, and consistency matter more than ever.
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