Why are there so few billion-dollar startups in Europe? Especially compared to the United States, where so-called “unicorns” find more fertile ground
According to a recent report by consulting firm PwC, since 1995 at least 50 European startups that reached a valuation of at least one billion dollars — the so-called “unicorns” — have left the continent to relocate to the United States.
These companies often choose to continue their journey in the US to be closer to their investors, who are primarily American. North America, in fact, boasts a richer financial ecosystem and generally more favorable conditions for startup growth, particularly for those that achieve “unicorn” status.
The European startup ecosystem
@chrissy.vc 4 New Unicorns in Europe in 2026 already!! 1. Aikido Security 2. Osapiens 3. Harmattan AI 4. Faculty AI #unicorn#europe#2026#venturecapitaloriginal sound – Chrissy
The relocation of European companies to the United States has become an increasingly prominent topic in the continent’s political debate. In recent years, several startups have moved part of their operations across the Atlantic, taking with them capital, expertise and investment: among them are two French companies active in the field of artificial intelligence, Aircall and Dataiku, and Swedish aeronautics company Heart Aerospace.
According to the Wall Street Journal, in 2024 the European Union had just over 100 “unicorns,” compared to nearly 700 in the United States. This does not mean, however, that Europe lacks startups capable of achieving significant results: countries such as the United Kingdom, Sweden and the Netherlands have developed dynamic tech ecosystems capable of generating successful new businesses. Nevertheless, difficulties for European startups arise when they need to secure capital and talent to sustain their growth — resources that are often more accessible in the United States.
What’s holding back startups in Europe
According to several European entrepreneurs, what weighs on European startups is not only the lower availability of capital on the continent, but also the level of bureaucracy and regulation within the European Union, which is seen in certain circumstances as an obstacle to growth and to the development of the most innovative companies.
For European startups that choose to relocate to the United States, the preferred destination is Silicon Valley, in the San Francisco Bay Area: here a dense network of investment funds and financial operators specializing in supporting companies at various stages of their growth is concentrated.
When they do not relocate to the United States, many European startups that reach significant scale nonetheless opt to list outside the continent. This is the case, for example, with Spotify and Klarna, both Swedish and listed in New York, as Italian company Bending Spoons has more recently done. Among the factors that can drive this choice are the greater availability of capital and the ability to raise it more quickly, as well as access to a financial market that can enable higher valuations than a listing on a European stock exchange.
