There's a recent article that appears on SFGate "Venture Capital Growing in Europe" that discusses the recent growth of venture capital investing in Europe.  Some take-aways:

• European venture fund raising is on the rise.
• Valuations are rising for seed and late-stage investments in popular venture capital hubs such as Berlin.
• While London, Berlin and Stockholm are centers for technology and venture capital, opportunities are being found in more remote places such as Kiev, Tallin and Istanbul, as well as Latvia, Poland and Lithuania.
• Eastern European entrepreneurs have strong engineering backgrounds.
• Venture investors in more remote countries face challenges, such as "unfamiliar local laws, stock exchanges with little experience in technology listings, varying accounting standards - plus different negotiating styles."

It's an interesting read.  Here's the link:  http://www.sfgate.com/technology/article/Venture-capital-growing-in-Europe-4048845.php

The recent DealBook article "Companies Born in Europe, but Based on the Planet" provides an interesting look at how many European start-ups are making an international expansion strategy a focus early on.  The article highlights the experience of SoundCloud, the web-based audio sharing service, and discusses how London, Paris and Berlin are attracting technology start-ups and investors.  Here's the link:  http://dealbook.nytimes.com/2012/06/11/companies-born-in-europe-but-based-on-the-planet/