Expanding to the US: what European founders should line up first
New research and industry advisers say European startup founders should sequence their US expansion carefully, tackling customers, immigration, funding and legal structure in the right order rather than all at once. Getting the order wrong, not the timing, is what typically drives up costs.
European founders often start discussing US expansion early, while their company is still raising seed funding. Research from Index Ventures, based on an analysis of over 500 VC-backed startups and a survey of 140 companies, found that 64% of companies now expand to the US at pre-seed or seed stage, up from 33% between 2015 and 2019. Notably, between 2008 and 2014 the figure was closer to 60%, suggesting the current trend is a return to earlier patterns rather than something new.
Sequencing matters more than speed
Advisers warn that expanding too early can drain a startup's runway and split founders' focus, while expanding too late can hand the market to competitors. The key signal to watch is repeatability of demand: several buyers with a similar problem and budget are a stronger signal than a single enthusiastic customer. It's recommended to gather a full quarter of pilot data before hiring a dedicated sales leader.
Founder presence and immigration
US expansion is typically founder-led at first, since investors and enterprise buyers want to engage directly with the founder. Experts recommend building a 90-day calendar of US activities and checking it against the founder's immigration status. Immigration, particularly the O-1A visa for individuals with extraordinary ability, requires significant lead time and documented evidence across multiple criteria. Other routes — L-1, E-2, EB-2 NIW, or the International Entrepreneur Rule — are not interchangeable and depend on specific eligibility factors, including nationality for E-2.
Structure, banking and sales adaptation
A Delaware C-corp is the default structure for VC-backed tech companies, though not necessarily the right fit for every foreign founder. Opening a US bank account and obtaining an EIN can take anywhere from days to several weeks, depending on the application method used. The US is also not a single market: founders are advised to narrow their sales focus to one buyer profile or region and localise contracts to meet state-specific requirements, rather than assuming a European template will transfer directly.
