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New research shows European startups are spending drastically less on a US launch, for the same gains

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It used to be the case that in order to scale glocally, European companies needed to spend big on launching in the US to achieve the kind of growth they wanted. That usually meant re-locating large swathes of the team to the San Francisco / Bay Area, or New York. New research suggests that is no longer the case, as the US has become more expensive, and as the opportunity in Europe has improved. This means European startups are committing much less of their team and resources to a US launch, but still getting decent results. That said, European startups will still look to the US for exits, as European corporates remain laggards in innovation.

New research by Index Ventures today reveals that less than 1 in 5 (50 out of 275) European tech firms are choosing to relocate their engineering base as they expand to the US, in stark contrast with the general strategy 10 years ago.
 Instead, says Index, Europe’s top tech start-ups are managing to get the growth gains they need about of the US with much smaller ‘on the ground’ footprint.

The survey of 275 European startups over the last decade (including an in-depth survey of over 100 firms) indicates that creating US-based engineering, tech and R&D teams has fallen out of favor, and they are staying in Europe for longer, taking advantage of Europe’s much-improved availability of talent and funding. 

Between 2008-2014 almost two thirds (59%) of European start-ups expanded, or moved entirely, to the US ahead of  Series A funding rounds. However, between 2015-2019 this number decreased to a third (33%). 

This chimes with research from StackOverflow which has found that the European tech scene has lifted, with more than 6 million professional developers residing in Europe, compared to just 4.3 million in the US. Tightened US immigration rules, and demand outstripping supply have inflated US tech salaries, which are 42% higher in San Francisco compared to London, making it more expensive and less cost efficient for European startups to double down in the US. Especially when they can achieve similar growth from home.

European founders are also now raising more, with rounds growing from $15.3bn to $34.3bn over the past four years.

Danny Rimer, Partner at Index Ventures said in a statement: “While for some founders, and certainly once a business reaches certain milestones, establishing a US base is a good decision, it is becoming increasingly costly and challenging.”

At the same time, however, Index found that European corporates invest three quarters (76%) less than their US counterparts on software, and this is normally on compliance rather than innovation. This means European startups are likely to continue to look to the US for exits to corporates.

The research findings are revealed in ‘Expanding to the US’, Index Ventures’ third handbook for tech founders seeking domestic and international growth.

As well as analysis of 353 European (275) and Israeli (78) VC-backed startups that have expanded into the US over the last 10 years it includes US expansion strategies and interviews with founders who’ve done it.

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Charge Your Phone Wirelessly With 50% off a Multifunctional LED Lamp

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Best Tech DealsBest Tech DealsThe best tech deals from around the web, updated daily.

White Wireless Charge Lamp | $18 | Amazon | Clip coupon + code ABC88699
Black Wireless Charger Lamp | $20 | Amazon | Promo code ABC88699

When you’re ready to turn in for the night, you don’t want to forget to charge your phone— especially if your mobile device doubles as your alarm clock.

With this wireless charger lamp, you can make this crucial step of your nightly routine even easier by just setting your phone on the wireless charging pad and… well, that’s all there is to it!

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Other functions include multiple lighting modes as well as a sleep timer option for auto shut-off of the light after 30 or 60 minutes.

This lamp can be yours in white for $18 if you clip the coupon on Amazon (it’s below the original $40 price) and add promo code ABC88699 at checkout.

You can snag the black version for $20 using the same code—no coupon though, sorry.

Don’t sleep on this deal! Who knows how long stock or the coupon code will last?

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Keep That Hotdish Hot With 65% Off a Luncia Casserole Carrier, Only $11 With Promo Code

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Best Home DealsBest Home DealsThe best home, kitchen, smart home, and automotive deals from around the web, updated daily.

Luncia Double-Decker Dish Carrier | $11 | Amazon | Promo code SDDU9S7F

It has been a long time since the days we could safely have a potluck or other gatherings, but we have a fantastic deal perfect for once those times return. These double-decker Luncia dish carriers can be had for 65% off when you add promo code SDDU9S7F at checkout and clip the coupon on the site (it’s just below the price). These holders fit 9″x 13″ sized baking dishes.

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That means you can insulate and keep two dishes of food warm for only $11 instead of $30. What’s more, your Luncia carrier will arrive by Christmas if you order today as a Prime member.

Just add promo code SDDU9S7F and clip the 5% off coupon to bring the price down to $11 for the blue or the grey option.

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Grab this offer while it’s still around!


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Conquer Your Pup’s Dander and Fur With $700 Off a Cobalt or Charcoal Bobsweep PetHair Plus Robot Vacuum

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Best Home DealsBest Home DealsThe best home, kitchen, smart home, and automotive deals from around the web, updated daily.

Bobsweep PetHair Plus Robot Vacuum & Mop (Cobalt) | $200 | Best Buy

Bobsweep PetHair Plus Robot Vacuum & Mop (Charcoal) | $200 | Best Buy

Allergies can be bad enough as the seasons change. Don’t let pet hair and dander add to that by vacuuming it up early and often. That chore is easier said than done— unless you have a robot vacuum to do the work for you. This lovely bright cobalt Bobsweep PetHair Plus robot vacuum and mop, only $200 today at Best Buy seems like an ideal option. That’s a whopping $700 off, by the way.

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You can get the same deal for the charcoal version of the robot vac, too. This model is not only specially made for picking up pet hair, it self docks and charges when it’s finished with the work.

It also comes with a mop attachment, so it can take care of those kitchen floors for you as well. Grab it while it’s still available for this fantastic price!

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