American tech startups looking to expand into the European market should do so quickly. In doing so, they should best locate in the UK, Ireland, Scandinavia or the Netherlands.
This is the estimation of Frontline Growth researchers. In the study, the investment firm looked at the experience of US startups when expanding into Europe. It shows that US startups must now expand into the European market.
The researchers write that because of the strong emergence of the European startup ecosystem, expansion into this market should be a top priority for US startups. This is especially important because the European market is attractive for growth. Meanwhile, the European market is already said to generate 40% of annual revenue for U.S. tech startups with a European presence.
On the other hand, the growing European startup ecosystem also offers more competition. US startups are said to suffer more from this by not having a presence in the European market. The right timing of an expansion into Europe is becoming increasingly important. In the latter case, however, many US tech startups do not often get that right, Frontline Growth says.
Netherlands among attractive business locations
The report further shows that the UK, Ireland, Scandinavian countries, and the Netherlands have the best business locations for US tech startups. The study indicates that both the market and employer climate in these countries are very suitable. Moreover, the use of English is commonplace and customer buying behaviour is much the same as in the US.
More specifically, American tech startups cross over to the UK and Ireland if they want to start in a large European market. When first moving into a small market, the Netherlands and Scandinavia often come to mind.