European startups are raising the bar for American founders

I grew up in the Netherlands, so I know the upsides of living in Europe. I also know how hard it is to build a company here. The rules change across borders, funding is limited, and things move slower than they should.

When we started Remote, we knew we had to think globally but also anchor in the U.S. It’s the biggest tech market, and succeeding there gives you the best chance to scale everywhere else. That choice wasn’t unique to us. More and more European founders are making the same call.

What’s changed is the timing of the move. Expanding to the U.S. used to happen once companies were well-established in Europe. Now they’re showing up earlier and moving faster. Index Ventures found that 64% of startups expand to the U.S. at preseed or seed stage now, an increase from the 2015-2019 rate of 33%.

WHY IT MATTERS

This shift matters for American businesses. European startups are arriving with funding and moving in as both competitors and potential partners. That changes how U.S. companies compete for capital, customers, and talent.

Spotify did this early. They started in Sweden in 2006 and quickly expanded into the U.S. They opened offices, built partnerships, and kept much of their engineering base in Europe. U.S. investment anchored them in the American market. It gave them credibility with local customers, visibility with partners, and the resources to scale fast. By the time they raised their $1 billion Series F, led by a U.S. VC, they were ready to take on Apple. Today, they lead the streaming market.

So why is this happening now? On paper, Europe is a huge market. In reality, it’s fragmented. Tax, labor, and compliance rules differ from one country to the next. Expanding from France into Germany can be as complex as expanding from Europe into Asia. Late-stage capital is harder to find, which slows growth, and enterprise customers are slower to move on smaller deals.

That’s why European startups are looking to the U.S. earlier. American buyers move faster, spend more, and make decisions quickly. The U.S. is still the market that signals credibility, and winning there carries weight abroad. Enterprise buyers in other regions often want proof a product works there before they commit.

These moves benefit more than just the startups. They raise the bar for everyone by pushing U.S. companies to get leaner, scale faster, and think globally.

4 TAKEAWAYS

So what should U.S. founders take away from all this?

1. Don’t slow down

European founders are showing up with clear goals and aggressive timelines. If you’re in a crowded market, they’ll be chasing the same deals, talent, and capital. Use that pressure to improve your product and move faster.

2. Build with discipline

European founders often scale with fewer resources and smaller teams. They build distributed companies early, with strong culture and tight alignment. Instead of debating office models, they figure out how to work across borders and time zones. That discipline can give U.S. companies an edge on speed and cost.

3. Think global from day one

European startups don’t have a big home market. They build for multiple markets early, which means products that work across languages, currencies, and regulations. U.S. companies that do the same are better positioned to scale fast and win abroad.

4. Work with them, not against them

Working with these companies can give you access to new markets, talent, and expertise. Investors who back them get exposure to broader networks and operating models. Treat partnership as a growth strategy.

My advice to American founders: Don’t ignore this wave. The best European startups are already here. Competing with them or working alongside them will make your company better. Don’t see it as a threat. Learn from it.

Job van der Voort is CEO and cofounder of Remote.

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