Winning in the US: how European startups can scale across the Atlantic

rs1499
Jul 24
3 min read

Updated: Aug 5

A founder’s guide to successful US expansion, based on Index Ventures’ playbook

For ambitious European founders, expanding into the US can be the gateway to global scale, but it’s also one of the most challenging transitions a startup can make.

Winning in the US, the latest guide from Index Ventures, offers a clear, strategic framework to navigate this leap.

Based on deep research, founder interviews, and hard-won lessons from 500+ venture-backed companies, the guide presents five proven archetypes for US expansion and shows how to choose the right one for your startup.

Here’s what founders need to know.

Why European startups are expanding earlier

A key trend highlighted in the guide is how expansion timelines have changed. Five years ago, just a third of European startups targeted the US at the pre-seed or seed stage. Today, that number has nearly doubled. As the startup ecosystem matures, founders are thinking globally from day one, recognising that the fragmented nature of European markets makes early international scale a competitive necessity.

The US still reigns as the global growth engine

Despite rising innovation hubs across Europe and Asia, the US remains the world’s most dynamic tech market. It accounts for twice the enterprise software spending of Europe ($195B vs. $90B), with faster sales cycles, higher risk tolerance, and customers more open to adopting new technologies. For many categories, particularly in SaaS, fintech, and healthtech, winning in the US means winning the category.

The five expansion archetypes: one size doesn’t fit all

Rather than offering a one-track approach, Winning in the US outlines five distinct expansion models (accessed here!) or “archetypes”, based on data, founder interviews, and case studies:

1. The Magnet

Founders relocate to the US early, shifting the commercial HQ stateside while keeping engineering in Europe. Common in B2B SaaS, where proximity to US customers, investors, and GTM teams is key.

2. The Pendulum

Founders split their time between Europe and the US, maintaining dual centers of gravity. Local commercial leadership is hired early, but HQ often remains in Europe.

3. The Anchor

Startups stay HQed in Europe but build a focused US beachhead. Founders don’t relocate, but hire strong US leadership to build sales, marketing, or BD.

4. The Telescope

Ideal for self-serve SaaS and API-driven products, the Telescope model keeps the company lean with minimal US presence, just enough to serve and support the customer base effectively.

5. The Transplant

Less common, this involves founding the company directly in the US, usually by repeat founders with existing networks. It’s not the guide’s primary focus but illustrates another viable route.

Each archetype comes with detailed playbooks covering hiring, funding strategy, leadership structure, timing of launch, and even board design.

Founder leadership: relocate or delegate?

One of the guide’s most important themes is the role of the founder in US expansion. For Magnet-style companies, relocation is often essential to gain traction, credibility, and cultural alignment. In Pendulum or Anchor models, founders may stay in Europe but must still commit meaningful time to the US, ideally 1–2 weeks per month to lead from the front.

What’s non-negotiable? Trustworthy local leadership. US expansion fails when founders delegate too much, too soon, to misaligned hires without embedding deeply in the culture and market first.

When (and how) to raise US capital

Timing is everything when it comes to US venture funding. Magnet startups often raise from US investors as early as the Seed or Series A stage, bringing credibility, talent access, and strategic advice. Others, like Anchor or Telescope companies, may delay until traction is proven in Europe.

Either way, the guide recommends targeting transatlantic investors with global experience, strong networks, and an understanding of the founder’s home market.

Designing a cross-Atlantic organisation

Expanding to the US doesn’t mean uprooting everything. Many companies maintain R&D hubs in Europe, where talent is more affordable and often more loyal. But it does mean creating systems that work across time zones: async communication, clear decision rights, and bi-continental leadership rhythms.

To thrive, distributed companies need more than tools—they need trust, discipline, and intentional culture-building.

Lessons from companies that got it right

Throughout the guide, Index Ventures highlights real-world examples of successful US expansion:

Spotify grew in concentric circles, from Stockholm to London to New York—while maintaining a European tech base and global cultural footprint.
Sword Health scaled to a $3B valuation while keeping its founders in Portugal and building a lean, high-impact US GTM team.
Personio followed a measured path, expanding into the US only after strong category leadership in Europe, demonstrating patience can pay off.

Each case underscores a central point: the how matters as much as the when.