Chapter I: Going Global from Day One - Why Start with the US?

A Strategic Guide for Emerging European Founders to Thrive in the US Market

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We believe wholeheartedly in founders who want to go global. But how do you actually make that happen? What paths can you take, and what challenges might you face along the way? Our goal is to walk you through these questions step by step.

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Over the course of several articles, we’ll explore the “how,” “when,” and “why” of going global from day one with the US. We’ll discuss hiring strategies that set you up for success, operational bottlenecks to consider, and real-world case studies that illustrate what works and what doesn’t. We’ll be diving into actionable insights and sharing lessons learned to make your path clearer.

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But before we do that, we need to start with the why.

Why?

The United States is the ultimate destination for tech founders, offering unmatched advantages like the world’s largest single market, home to over 700 unicorns, nearly half of global tech spending, and an ideal customer base for blue ocean technologies. The US leads in customer adoption and is home to pioneering tech talent, making it a powerful launchpad for startups. But is it right for every company?

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The insights here stem from our experiences with portfolio companies. While success takes many forms, these considerations reflect approaches that, in our experience, have proven effective.

There are 5 main factors that can significantly influence a startup’s readiness and success in starting in the US. Below, we’ll explore each of these points in detail, highlighting why each factor is critical and how it influences expansion strategies.

Let’s dive deeper into each of these.

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Assessing Market Maturity

Startups that gain the most from a US-first approach often operate in “blue ocean” markets—verticals with minimal competition and significant innovation potential. These startups can capitalize on early momentum by attracting top talent, conducting discovery with leading companies, and innovating in areas where competitors are still pivoting and searching for product-market fit.

Think of assessing the US market as deciding your rocket’s trajectory, whether you’re aiming for a ‘blue ocean’ or ‘red ocean’ market helps you determine the most effective path for reaching for the stars!

The real challenge lies in assessing red ocean markets which although are mature and competitive industries, new technology or market shifts may offer entry opportunities. Understanding market inflections, such as major technological shifts or emerging customer needs, becomes crucial. In these spaces, founders need a bullish stance and a compelling why now narrative to justify entering an established market with an innovative twist.

Founders looking to assess market maturity for US expansion should start by looking at direct and indirect competitors: how old are they, how much funding have they raised, and are there any notable exits in the market?

Ideally, US-first startups want to be slightly ahead of the curve. Checking the Gartner Hype Cycle,if your sector already has a dedicated section or if it’s frequently mentioned, it might be too late to position yourself as an early entrant in a blue ocean market. The optimal entry point is often before the sector appears on analysts’ radars, allowing you to establish early momentum without intense competition. Another indicator is the number of billion dollar IPOs and successful exits in your space. When a sector sees multiple IPOs and several unicorns emerging, it signals a more saturated market.

Product Positioning: Best-of-Breed vs. Best-of-Suite

Your US expansion strategy depends significantly on your product positioning, much like how the upper body shapes your rocket's structure—whether it’s best-of-breed or best-of-suite . If your product is best-of-breed, meaning it’s highly specialized and excels in a specific function, the US might make more sense. The US market has some of the most mature customers, especially in enterprise technology, who are open to unbundling and prioritizing specialized solutions.

For best-of-suite solutions, starting with regional or local expansion makes more strategic sense, allowing differentiation & scale before tackling a more crowded US market. Entering these segments means competing against established players with substantial sales and marketing power in a market where you have limited brand recognition. Here, the challenge shifts from technical differentiation to US-specific sales and marketing, requiring a deep understanding of the market and a network that’s not easy to build from scratch.

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Customer Profile: Building a Strategic US Customer Base

US early adopters are critical in blue ocean markets

Early adopters who provide valuable insights to validate product-market fit are crucial for accelerating initial growth and establishing a strong foundation. In a blue ocean market, where competition is low, and innovation potential is high, securing forward-thinking enterprise design partners who are eager to pilot new technologies and have the budgets to invest can be a game-changer. In the Bay Area, you’re more likely to find specialized teams within enterprises and R&D budgets that allow for the testing of cutting-edge solutions.

Leveraging the US for Easier Global Sales

Once you’ve gained traction with early adopters, customer adoption becomes the next focal point. By securing adoption in the US, startups can position themselves for easier expansion in other regions. In industries where recognition by prominent American corporations holds significant weight, having an initial base of US customers can make it much easier to approach new markets.

The advantage of US customer adoption extends beyond reputation, it also preserves the product’s core value. Building for the US allows you to stay focused on a best-of-breed approach, where the product addresses specific, high-value needs. In contrast, remaining in less mature markets can push a startup to generalize its solution into a best-of-suite model, designed to meet a broader range of needs with lower depth.

Securing both early adopters and customer adoption in the US, aligns your product’s trajectory with the high standards and rigorous demands of a mature, competitive market.

Financing: The US Advantage in Raising Capital

Financing is a key factor for founders aiming to accelerate at its core and become outlier successes. By raising capital, founders can achieve in a couple of years what might otherwise take two decades, making it essential for startups in fast-moving markets or those requiring rapid scale for market penetration or network effects. Just as fins stabilize a rocket, access to US capital keeps your startup grounded and on course for liftoff. With a steady flow of funding, your growth trajectory stays strong, propelling your rocket to reach new heights along the way.

In the US, funding is rarely a bottleneck for ambitious founders. Although venture financing in Europe has grown significantly in recent years, the US still dominates in terms of total capital availability, risk tolerance, and growth-focused funding options. US investors bring a unique appetite for risk, fueled by big success stories and exits. This difference in mindset and approach to risk makes the US a unique environment for financing, particularly for founders focused on exponential growth. Many promising European companies, can reach significant revenue milestones - i.e. $50-$100 million ARR - but ultimately find themselves becoming acquisition targets rather than IPO candidates.

However, raising capital in the US can be more challenging for non-native founders, as investors often favor warm connections and established networks. They are also generally more selective and look for truly exceptional companies. But while it may be easier to raise smaller, faster rounds in a local European market, substantial US rounds bring with them the expectations and pressures of competing in one of the world’s most competitive financing environments. For founders who aspire to be outliers, this is the trade-off: access to unparalleled funding opportunities, but with heightened competition and scrutiny.

For those willing to step up, however, the potential rewards are unmatched. Our message is clear: if you want to stand out and scale globally, the US is where you need to be.

Access to Talent: The Network Effect in the US

While tech talent is globally distributed, the US - especially the Bay Area -  holds a unique advantage with its high concentration of elite talent. The highest quality talent gravitates toward hubs with other high-caliber professionals, creating a network effect that’s challenging to replicate elsewhere.

This clustering effect creates a flywheel, where the top engineers, developers, and innovators continually push each other to reach new heights. For startups building products that require “10x engineers”—individuals who deliver exponentially greater impact—being in an environment with other high-performers becomes essential. In the Bay Area, the density of experienced engineers provides startups with a unique advantage in securing talent that is both skilled and networked in a way that fuels innovation and rapid scaling.

Bringing It All Together: Where Do You See Yourself?

When evaluating whether to move to the US, consider all of these factors—market maturity, product type, customer profile, financing, and talent. The US may not be the right fit for every startup, but for those aiming to scale globally and stand out as outliers, it offers unique advantages. Founders should assess their positioning and aspirations carefully: Do you need high-level talent clustering in the Bay Area? Do you see your business benefiting from the network effects and resources only the US can provide?

To help you make this decision, visit the framework at the top of the page. Our goal is to provide clarity on what it takes to thrive in the US market, so you can determine the best path forward.

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