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King Digital Entertainment, maker of “Candy Crush Saga,” is one of Europe’s more successful recent venture exits. Bloomberg News/Simon Dawson

U.S. venture-capital investment in Europe is increasing steadily, a new report by Germany’s Earlybird Venture Capital has found.

“The U.S. is slowly realizing the huge potential of European startups,” said Dörte Höppner, chief executive of the EVCA Venture Capital Forum in Berlin.

Europeans’ VC investments dropped to €3.2 billion ($4 billion) in 2012 from €3.8 billion in 2009, ticking up to €3.4 billion in 2013. Earlybird says U.S. VCs are stepping in and chasing European companies, steadily increasing their share of funding for early-stage startups

Image: King Digital Entertainment, maker of “Candy Crush Saga,” is one of Europe’s more successful recent venture exits. Bloomberg News/Simon Dawson