Europe to North America: how to succeed in the US market 

Julio Martínez at Abacum describes how European early-stage businesses can set up shop, scale, and and make real inroads into the US market

 

For many European founders, expanding into North America isn’t just another growth marker;  it’s a serious milestone that can shape the future trajectory of their business. 

 

The US is the world’s largest economy, a hub for innovation, and home to some of the most ambitious companies, customers, investors, and talent pools on the planet. However, it is also a market that can chew up early-stage businesses who underestimate its scale, pace, and nuanced cultural differences. 

 

Based on the lessons lived and learned here at Abacum, here’s my two cents for setting up shop and making real inroads in North America, as well as some cautionary tales for those on the cusp of making the leap. 

 

 

Think global from day one 

The most successful European startups don’t treat US expansion as a bolt-on for down the line. Instead, they bake international scalability into their DNA from the get-go. 

 

For us, our product addresses a universal need that is not restricted by geography. Some products are inevitably tied to local regulations, conventions, or customer behaviours. The key is to recognize those boundaries early and plan with adaptability in mind. 

 

Designing your product, onboarding process, and support systems that can scale across time zones and languages are essential. The same goes for the structure of your team. This enables you to target early customers in multiple regions, meaning global sales capabilities develop naturally and swiftly. 

 

This mindset prevents you from building a product or a team that’s overly reliant on a single market. If you know the US is on your roadmap, don’t wait until your Series B to think about it. You need to start laying the groundwork as early as possible. 

 

 

Avoid the “big splash” launch 

Many European startups make the mistake of announcing a dramatic US “launch” without having built a real presence or foothold in the market. Without tangible early customer traction, this is nothing more than meaningless noise. 

 

A smarter approach is to be incremental and systematic. Identify a narrow customer segment in the US where your product has a unique and strong value proposition. Win a handful of early adopters and become truly customer obsessed. Compile case studies of those early customers to build your credibility and win more. 

 

From there, gradually expand into adjacent sectors and geographies within the US. In other words, start small, iterate fast, and build momentum drop by drop. 

 

 

Acknowledge that the US really is different 

North America isn’t just a larger version of Spain or Europe without borders. It’s a different beast entirely. 

 

It has a faster decision-making culture, with US customers expecting quick turnaround times and high levels of responsiveness. Competition is also more aggressive and often armed with more capital. Communication norms also differ as people tend to be more direct and assertive. In practice, this means European founders often need to adapt and dial up their conviction and clarity in pitches to resonate with customers and investors.

 

The differences in business operations are also accompanied by an array of regulations, especially in sectors like healthcare, finance, and HR, where compliance can vary significantly from state to state. 

 

European founders who try to tackle North America like a single, uniform, one-size-fits-all market often get caught quite quickly. In reality, it’s multiple different markets under one flag. 

 

 

The ultimate signal of commitment: a founder on the ground 

One of the strongest indicators of whether a European startup is serious about success in the US is whether a founder relocates there. This isn’t just a symbolic move, it’s a practical one. 

 

Not only can a founder in-market build deep customer relationships that are hard to forge remotely, but they can also recruit US-based talent that may be wary of joining an overseas company without leadership on the ground. Being physically present means you can quickly react to opportunities and challenges, as well as navigate cultural nuances first-hand. 

 

Yes, it’s a big personal and professional commitment, but having leadership on the ground is often the difference between understanding cultural and customer nuances first-hand versus relying on second-hand signals. Without this level of presence, you’ll always struggle to get the same depth of insight as local competitors, attract the best talent and better serve your customers.

 

 

Prepare yourself for a higher burn rate 

Operating in the US is a lot more expensive. Salaries, insurance, legal fees, office space, marketing costs, the whole nine yards, can often give European founders sticker shock. 

 

Founders can underestimate just how much capital they’ll need to establish a foothold, which can lead to them running out of runway just as they start to gain traction. You need to model for higher costs than you think, and, if possible, engineer your growth with US expansion in mind. 

 

 

Settle in for the long game

Breaking into the US is rarely a quick win. It’s a multi-year commitment that requires capital, patience, and constant iteration. If you can nail it though, the rewards are enormous - a vast addressable market, access to top tier talent, plus marquee customer and investor names. 

 

If you’re a European founder eyeing up the US, you need to ask yourself whether you’re ready to commit fully, adapt your approach, and invest for the long term. If the answer is yes, then start laying the foundations today. The US may not just be yet another market for you. It might be the one that defines your company’s future.  

 

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Julio Martínez is Co-Founder and CEO at Abacum

 

Main image courtesy of iStockPhoto.com and cirano83