Europe vs. US tech? Founders say the Future is Transatlantic
Transatlantic Tech 2025: Different Strengths, Shared Ambitions
For decades, the United States and Europe have been framed as two competing tech ecosystems: Silicon Valley with its relentless “go big or go home” ethos, and Europe with its reputation for measured growth, fragmented markets, and heavier regulation. In 2025, this narrative is shifting. According to the Sifted AVP Transatlantic Founder Index, based on surveys with more than 250 founders across both regions, the future is not about competition but complementarity. The data highlights clear differences in funding, talent, and culture—yet also a shared ambition to build globally significant companies.
Capital Is Still King—And the US Wears the Crown
Nothing illustrates the divide more starkly than capital. 53% of European founders cite access to funding as their top growth challenge, compared to just 30% in the US. The disparity is structural. In 2024, US startups raised €191bn across nearly 9,400 rounds, while Europe saw just €75.6bn across 4,719 rounds. The average American deal size was $20.4m—almost double Europe’s $11.8m.
This deep pool of capital enables the outsized bets the US is known for. OpenAI’s $40bn raise or Andreessen Horowitz’s $20bn fund-in-progress would be unthinkable in Europe’s ecosystem. Europe, however, makes a virtue of scarcity. Founders talk about being “forced” into leaner operations, greater discipline, and higher capital efficiency. Paris-based quantum startup Alice & Bob raised a €100m Series B this year—large by European standards—and credits its efficiency as part of its pitch to investors.
The lesson? Europe produces durable, efficient companies like ASML and Spotify, while the US produces trillion-dollar giants like Apple and Nvidia. The best founders increasingly try to blend both playbooks.
Talent: A Shared Struggle, but with Different Edges
Talent is another defining theme. Both sides agree it’s hard to hire, but the pain point is sharper in Europe. Founders rated talent access at 6/10 in Europe versus 8/10 in the US. The difference lies in speed and scale. In the US, despite high salaries and competition from Big Tech, the system allows companies to hire (and fire) rapidly. In Europe, regulatory hurdles and visa issues slow the process.
AI biotech founder Stef van Grieken recalls losing a top engineer because Europe’s visa process would have taken eight weeks—time he didn’t have. Yet Europe’s smaller number of mega-tech employers also means less competition for graduates. A startup in Berlin isn’t trying to outbid Apple for every hire, which can make recruiting easier for early-stage teams.
Regulation: Europe’s Drag vs. US Fluidity
No survey would be complete without touching on regulation. For founders, Europe’s bureaucracy is legendary. Stories of Austrian notaries reading contracts aloud over video calls, or weeks of delays for signatures, stand in stark contrast to the US, where capital can move with a click. 53% of European founders rank regulation as their biggest growth hurdle, versus 30% in the US.
But America isn’t entirely frictionless. Fifty states mean fifty tax regimes, labor laws, and compliance quirks. The difference is that the US has developed advanced infrastructure—legal, financial, and technological—that makes navigating these complexities easier. In Europe, momentum is building behind “EU Inc”, a push to standardize company law and streamline incorporation, stock options, and investment structures across the continent. If realized, it could remove one of Europe’s most persistent barriers.
Optimism vs. Realism
Perhaps the most striking difference is cultural. Asked to rate their ecosystems, US founders hand out perfect 10s far more often than Europeans, who cluster around 5s and 6s. Americans consistently score higher on optimism for capital, talent, and support. Europeans tend toward pragmatism—sometimes bordering on pessimism.
Is the US really that much better? Or is confidence itself a competitive advantage? Many argue the latter. American founders grow up in an ecosystem that celebrates risk-taking and reframes failure as a learning opportunity. European founders often hear caution first: “Have you thought this through?” The cultural gap helps explain why US founders are faster to expand, pursue IPOs, and think in global terms earlier.
AI: Both Sides Betting Big, but with Different Fears
AI is the common denominator shaping every founder’s strategy. US founders rated AI’s impact on their industries 8/10, while Europeans gave it 7/10. But the difference lies in mindset: Americans see AI as both opportunity and threat, scoring its potential risks at 6/10. Europeans are more sanguine, scoring risks at just 4/10.
This reflects ecosystem dynamics. In the US, where hyperscalers dominate, startups worry about being outpaced or locked out of critical infrastructure. In Europe, AI disruption is viewed as a chance to close the gap. Chinese startup DeepSeek proved that world-class reasoning models can be built at a fraction of Big Tech’s budgets, emboldening European founders. Companies like Mistral AI in Paris and Synthesia in London are now signing major deals and positioning themselves as credible global players.
The Trump Effect and Tech Sovereignty
Politics loom large. Donald Trump’s return to the White House has already disrupted transatlantic dynamics. His tariffs may reshape supply chains and threaten European startups exporting hardware. More broadly, they have injected urgency into Europe’s push for tech sovereignty—investing in chips, cloud, and defense tech to reduce reliance on US suppliers.
Yet even amid volatility, American optimism remains unshaken. Late-stage US founders are especially bullish, with 62% rating their future growth prospects as a 10/10, compared to much lower scores in Europe. For European founders, the challenge is to turn political disruption into acceleration, especially in sovereign tech sectors where demand is rising fast.
Toward Complementarity, Not Competition
The most revealing data point may be about collaboration. 69% of European founders are actively seeking cross-border partnerships, compared to 58% in the US. For European startups, international collaboration is almost a necessity—fragmented markets demand it. For American startups, domestic scale buys more time, but the frontier is increasingly global.
This is not a zero-sum game. Founders are crossing borders, seeking US capital, European talent, and global partnerships. The next generation of category-defining companies will not be “European” or “American” in identity—they will be transatlantic by design.
Conclusion: Bridging the Divide
The numbers and stories tell a simple truth:
The US excels in scale, speed, and capital depth.
Europe excels in efficiency, resilience, and sustainability.
Founders who combine both playbooks will define the next era.
The divide across the Atlantic is narrowing. In 2025, the strongest founders are no longer choosing between ecosystems—they’re building across them. Those who can blend American boldness with European pragmatism will not just survive the turbulence of this decade; they will set the pace for global tech innovation.
