Stop telling European founders to move to the US

2026-05-29 · Source: Sifted · Field: Business & Management — Entrepreneurship & Start-ups, Corporate Strategy & Leadership · Depth: Fundamental Awareness, short

Summary

The article refutes the common advice given to European founders by US investors, which suggests relocating to the US is necessary for global success and significant fundraising. This narrative, often reinforced by media and online critics, is largely a "marketing campaign" against Europe's tech ecosystem, as US funds readily invest in European companies. According to the State of European Tech 2025 report, 85% of European founders prefer to remain in Europe, citing deep engineering talent, world-class research, and high quality of life. Companies like Wolt, Iceye, IQM, and Legora exemplify successful global scaling from Europe, raising hundreds of millions of euros. While Europe faces a "growth capital gap" for the largest rounds, initiatives such as the €5bn Scaleup Europe Fund, led by EQT, are addressing this. The continent saw 27 new unicorns in 2025, and the EU Inc initiative is progressing, indicating strong momentum despite the negative narrative.

Key takeaway

For European founders considering relocation to the US for fundraising or scaling, critically evaluate the narrative that Europe is structurally incapable. Your company's destiny hinges on execution, not geography, as many successful European-based unicorns demonstrate. Policymakers should prioritize creating incentives for domestic institutional investors to bridge the growth capital gap, ensuring Europe retains its talent and value creation. Utilize Europe's deep talent and quality of life, and challenge incomplete stories about the continent's tech ecosystem.

Key insights

The narrative that European founders must move to the US is largely false; global companies can thrive from Europe.

Principles

• Global companies can be built from Europe.
• Geography is not destiny for company success.
• A "growth capital gap" is a scaling problem, not a company-building one.

In practice

• Founders should evaluate relocation advice critically.
• Policymakers should incentivize local growth funds.
• Focus on execution over perceived geographic barriers.

Topics

• European Startup Ecosystem
• Venture Capital Funding
• Growth Stage Financing
• Founder Mobility
• Tech Policy
• Unicorn Startups

Best for: Entrepreneur, Investor, Policy Maker

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Editorial summary, takeaway, and curation by AIssential. Original article published by Sifted.