At least 50 European startups valued above one billion dollars have packed up and moved to the United States since 1995, according to consulting giant PwC. The exodus strips Europe of capital, talent, and some of its most promising companies.
These so-called unicorns frequently relocate to get closer to their investors, who largely operate out of American financial hubs. North America offers a deeper funding pool and conditions generally more hospitable to high-growth technology firms.
The trend has become a flashpoint in European political circles. Recent departures include French artificial intelligence companies Aircall and Dataiku, plus Swedish aerospace startup Heart Aerospace.
The numbers paint a stark picture. In 2024, the European Union housed just over 100 unicorns, while the United States counted nearly 700, per the Wall Street Journal. Yet Europe does produce serious contenders. The United Kingdom, Sweden, and the Netherlands all maintain vibrant tech ecosystems capable of launching successful ventures.
The problem emerges when those ventures need serious money and specialized staff. Both resources prove far easier to access across the Atlantic.
European founders point to more than just scarce capital. Bureaucracy and EU regulations often function as growth blockers for innovative companies, they argue. Meanwhile, Silicon Valley remains the preferred destination for relocating firms, given its dense concentration of venture funds and financial specialists supporting companies at every growth stage.
Some startups skip relocation but still abandon European markets. Spotify and Klarna, both Swedish, chose to list in New York. Italian company Bending Spoons followed suit more recently. The draw includes faster capital raising, greater financial depth, and valuations that European exchanges struggle to match. As a result, Europe keeps producing billion-dollar startups while watching too many of them thrive elsewhere.
