Funding the AI Economy—a new report developed under the StepUp Startups project—shows AI has moved to the center of global VC, yet Europe still lacks late-stage scale. From 2020–2025, the EU deployed ~€252B in VC with 18% to AI, versus the US’s ~€1.33T with 34% to AI; in €25M+ rounds EU investors provide only ~26% of capital. The report outlines targeted fixes—an AI Scaleup Fund, mobilizing institutional capital, and stronger corporate VC—to keep Europe’s AI champions built and scaled at home.