Europe’s population grew by 1.6 million in 2023, beating predictions of an imminent demographic peak. The continent’s economy managed to defy expectations of a prolonged recession, as well, while posting softer-than-expected inflation data. Its tech sector has shown incredible dynamism since the onset of the COVID-19 pandemic, despite “lockdown” orders much stricter than in most parts of North America.
In short, for all its troubles, Europe remains a bright spot in an uncertain world, one that continues to attract founders seeking access to its dynamic home market.
“The European Union may have the most undervalued startup economy globally ,” says Shmuel Chafets, co-founder of London-based venture capital firm Target Global.
Is it worth uprooting your life and seeking your fortune here if you’re not already based in the E.U. or nearby? That’s a personal decision, of course, but there are certainly compelling reasons to do so.
1. It’s One of the World’s Biggest Economic Areas
The European Union has nearly 450 million inhabitants, up from about 350 million two generations ago. This multitude lives within a single currency zone that, with some important limitations, functions more or less as a unified national economy.
The United States, by comparison, has about 335 million people; Canada has about 40 million. And both countries’ growth, like Europe’s, is slowing.
2. It Offers (Nearly) Friction-Free Travel
Europe’s transportation system — especially the plentiful high-speed trains in its western and central regions — is the envy of the world.
“In Europe, getting from Point A to Point B is a snap,” says Rick Steves, a eurocentric American travel writer. “The train system shrinks what is already a small continent, making a whirlwind or far-reaching tour a reasonable possibility for anyone.”
Add in essentially border-free travel within the core of the European Union and you’ve got an entire continent at your (and your distributed workforce’s) fingertips.
3. It Has A Deeper Reserve of Human Capital With a Wider Range of Perspectives
Looks can be deceiving. Europe’s unified economic posture masks an incredible diversity of languages, nationalities, and perspectives. Although most members of its professional class speak fluent English and/or French and take a worldly, pragmatic approach to business affairs, they’re very much not a monolith.
That’s an undersold strength in comparison to more homogeneous developed economies like South Korea or Japan. Sometimes, all that’s required is a new way (or many ways) of looking at the same problem.
4. Its Living Costs Are Lower Than Many Other “Global North” Markets
With its well-preserved central cities and generous social safety net, it’s easy to assume life in Europe is as dear as in Australia or the United States. But for the most part, that’s not the case.
Take Berlin and San Francisco, the respective startup capitals of Europe and North America. The overall cost of living in Berlin is 52% lower than in San Francisco, which would be amazing in its own right. The “rent gap” is even more incredible: a whopping 162%.
5. Locals Have Deep Expertise in Key Growth Industries
Forget what you’ve heard about six-week summer vacations and 35-hour workweeks. Europeans work just as hard as their peers on other continents, and they’re quite good at their jobs too.
For growth founders, Europe’s talent pool is particularly enticing. Locals here have world-class expertise in a range of startup verticals, from business SaaS and industrial cleantech to consumer-facing sectors like fintech and next-generation mobility. And with continent-wide initiatives to address longer-term labor needs, the future looks bright.
Europe Is Waiting
We live in uncertain times. In North America, recent political upheavals portend a “choose-your-own-adventure” future. Emerging economies across Latin America and Africa struggle with their own democratic transitions, volatile natural resource prices (and weather patterns), and uncertainty over their demographic futures. China and its Asian neighbors are staring down what could be a prolonged period of economic malaise.
Europe, too, has its struggles. But contrary to the popular narrative, it’s in no worse shape than these other parts of the world. Indeed, as we’ve seen, there are compelling reasons to believe the opposite — that Europe is among the world’s very best places to do business in 2025.
If you’re a founder sold on the continent’s promise, Europe awaits. Here, you just might find what you seek.