That's not the case for the EU. Money gets reasonable returns in energy sector, industry, any investment in Eastern Europe, tourism, PPP infrastructure projects, etc.
You are literally describing the opposite of the truth.
Nothing, not even the Londongrad bubble, is as excessive as the US housing crisis.
In any case at least YC does invest into European companies [1] - the key thing is you have to get far enough to have a meaningful product that VC funds can invest in, and unlike the US we don't have a lot of billionaire former founders who go around throwing a couple thousand dollars left and right for promising ideas they hear in an elevator.
Not "miss out" per se, rather a "prioritize companies in close proximity". There's a reason why a lot of the former startup turned unicorns are all concentrated around the Silicon Valley.
