In the Nordic scaleup world, the consensus until recently has been the idea that setting up in the US is the default move. It's been widely considered the quickest way to grow and reach a unicorn status. This consensus is no longer there.

A growing number of Nordic companies are now talking about building in Europe instead. And it's not just talk: while the number of secondary growth offices Nordic companies have set up in the US has decreased by -8% YoY, there's been an +12% increase in office setups in the UK, and around +4% in France and Germany. Furthermore, 15% of companies have decided to stay in their home markets or in the Nordics.

More widely, according to the State of European Tech Report by Atomico, 51% of European founders say building in Europe is part of their mission. Further 34% would prefer to build in Europe but say they may need to scale somewhere else.

So, the question is, do they, or could they scale without leaving the continent?

Why Nordic Scaleups Should Scale in Europe

I'll start with a quote from Anton Osika,the CEO and co-founder of Lovable: "I believe Europe has lots to offer the world in terms of values and long-term thinking. These values propagate when Europe stays relevant by developing platforms the world relies on. If you help, you are significantly improving the chances that European-built platforms flourish, and become something that coming generations will use and talk about."

It's still hard to deny that the US market has a lot to offer to growth companies. There's purchasing power, there's capital, there's talent. Yet I'm refuting the idea that 'Global = US'. On the contrary, I'd claim that Europe is ideal for building a global company while the US is for building a US company.

The Cost Advantage: Talent and Salaries in Europe

And while the US can offer more capital, it's also much easier to burn it all quickly. While in Stockholm the average salary for a sales manager is €62k, in San Francisco it's more than double at €128k. In major European hubs salaries are higher than in the Nordics, but the gap isn't as wide as you might think: the average salary for a sales manager in London is €79k, in Berlin €78k and in Paris, €69k. (Figures from London & Partners benchmarking report.)

Retaining talent is also much easier in Europe: the annual churn rate of sales talent in the US is 25-30%, while in Europe it's 15-18%. For Sales Development Representatives the rate is 40%, while in Europe it's 22%. This means that statistically, you are likely to lose your entire SDR team every 23 months, which is both costly and breaks your institutional memory. By scaling in Europe, you protect your institutional knowledge during the volatile scaleup years. (Figures from Ravio 2026 Compensation Report and The Bridge Group 2025 SDR Metrics Report.)

Capital and Customers: Is There Enough in Europe?

You've probably heard the myth that you need to go to the US to find late-stage capital. However, according to Invest Europe (2025/26), European VC 10-year net returns reached 18.95%, significantly outperforming North American VC funds (~17.5%), which is drawing more institutional capital into the region's late-stage rounds. And on top of this, Atomico's 2025 State of European Tech confirms that the probability of a European startup reaching unicorn status is now 1.9%, compared to 2.1% in the US, shrinking the gap between markets further.

When it comes to purchasing power, it's useful to know that European enterprises are outspending their global counterparts in many of the categories where Nordic scaleups excel: Sovereign AI, Cybersecurity, and Infrastructure.

For a Nordic founder, this means the new money entering the market is more accessible in their home region than in the maturing US market.

Protecting Your IP With a Dual-Hub Strategy

Lastly, one of the most important reasons to stay in Europe is to prevent the IP drain. By staying close enough, founders can utilize the "Dual-Hub" model: keep the R&D in the Nordics, and place the commercial engine in one of the global Tier 1 Hubs in Europe. Or, hire engineering/research talent in both hubs and steer the ship from the Nordics.

But why not just stay in your home market, you may ask. Because the Nordics don't offer the scale you need to show investors you can make it in bigger markets, doesn't offer you the talent pool or access to customers bigger European markets do.

Therefore, the best way to stay competitive without leaving Europe is to set up another hub elsewhere. But where?

The Case for London

There are multiple global hubs in Europe. And yes, you are likely to find cases for other great hubs like Paris, Berlin, Dublin, or Amsterdam, and you may very well find they suit your purposes better. But for now, let's explore why London should probably at least be on your short list:

Cultural Fit and Shared Values

Firstly, London gives you the massive customer base and fast-moving investment we don't quite have in the Nordics yet, but without the extreme cultural and financial leap of moving to America. In fact, I believe London and the Nordics are in many ways a great cultural match: in both London and the Nordics we believe in equality and inclusivity (have you heard of London's Inclusive Talent Strategy?), sustainability (London wants to reach Net Zero by 2030), and purpose-driven innovation. We don't just build tech for the sake of it, we build to solve real-world problems.

London as a Global Springboard: Connectivity and Reach

Secondly, London is the most connected city in the world (TeleGeography Connectivity Score, Global Power City Index). For a Nordic founder, this makes London a global springboard that behaves differently than American hubs in four key ways:

1) Approximately 40% of the world's 250 largest companies run their global operations from London. You aren't just winning a UK contract, you're winning a HQ that controls budgets for dozens of countries.

2) Aviation: from London's six airports, you can reach a more unique global destination via a direct flight than from New York or San Francisco.

3) Time zone: London sits in the "Golden Time Zone", which means you can trade with Asia in the morning and North America in the afternoon.

4) Digital connectivity: London holds a market connectivity score of 60.7/100, the highest globally in 2026.

Access to Capital: More VC in London Than Paris, Berlin and Stockholm Combined

Thirdly, there's far more capital than anywhere else in Europe: in 2025, as in the years before, there was more VC money raised in London than in Paris, Berlin, and Stockholm combined. The UK also recorded 36 megarounds ($100M+), making it by far the best place in Europe for later rounds and bigger cheques. And, as of 2026, the UK's Mansion House Compact has begun unlocking billions in pension fund capital specifically for late-stage tech.

A Talent Pool Unlike Any Other in Europe

Lastly, as much as I admire the talent in the Nordics, London has more people than anywhere else who have experience growing companies from a small team to over 1,000 employees. There's also far more technical talent than anywhere else in Europe: there are more than 466,000 developers, for example. It is also the only region with three universities in the global Top 10 as of 2026.

You Can Become a Unicorn Without Leaving Europe

Ultimately, the choice to build in Europe is now a competitive strategy rather than a compromise. For a Nordic founder, a hub like London offers the massive customer base and funding you need to reach a billion-dollar valuation without losing the culture or the people that made your company successful in the first place. By keeping your research at home and building your commercial engine in a global city, you get the best of both worlds. You don't need to cross the Atlantic to build a world-leading company anymore. You can become a unicorn without leaving Europe.

Salla Hänninen, VP of Business Development (Nordics/Baltics), London & Partners

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