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U.S. and European venture capital firm Index Ventures announced a €350 million fund for primarily early-stage European investments late Sunday. The firm said it’s impressed by the innovation it’s seeing in Europe despite economics issues that have plagued the area for several years. Some of the fund will go towards U.S.-based startups as well.

This sixth-generation fund for the firm will focus on consumer technology, with some enterprise investments. The firm has done well investing in marketplaces, payments, gaming, mobile, and social startups, Index Ventures partner Mike Volpi told VentureBeat in an interview. Index Ventures’ past investments in these areas include Flipboard, Etsy, Path, and Moo.

“There are more companies started by more people in Europe. Right now, there are more people disillusioned by their big company jobs,” said Volpi.

Venture capital firms do well in Europe, according to Volpi. Large companies are hesitant to invest, so VC firms have an advantage. They also act as a support system, because European startups often don’t have access to lawyers and financial advisors that specialize in startups. Because the entrepreneurs have less experience, VCs take on a mentorship role.

Index’s sixth fund will primarily go towards startups in Berlin, London, Stockholm, and Tel Aviv, with some investments made in the U.S. in New York City and San Francisco. The early-stage fund has dedicated $20 million to seed financing.

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