Is Y Combinator worth it from Europe? 4 European founders answer

If you have any level of ambition, better move to the U.S. before you make the mistake of getting started in Europe. That’s the impression you’ll get if you spend time on tech social media, where EU regulation, taxes and fragmentation are frequently pilloried.

‍

I’m a European living in Europe. And let’s face it: Those accusations aren’t baseless. I can have a Delaware LLC in a few hours, while a German GmbH can take months and requires multiple in-person appointments. 

‍

But Europe shouldn’t keep gaslighting itself into lowering its ambitions and playing second fiddle to the U.S. As the world order is shifting, Europe is starting to realize that startups do matter. 

‍

This is both at the levels of government (The EU is committed to enabling an EU Inc., which would make it easy to incorporate anywhere in Europe) and of individuals: 150+ founders and investors recently unveiled Project Europe to support the next generation of European founders with a YC-like concept. Founders get 200k for 6.66% equity and mentorship from experienced founders. 

‍

I love the idea of Project Europe, so I decided to sit down with European founders who did something similar: Y Combinator. I chatted about 5 European YC founders about their experience and how it impacts their businesses today.

‍

1. The Network and the YC stamp of approval

‍

The network is one of the biggest advantages of YC. Whether for intros to investors or just to ask for advice from people who “get it”, knowing the right people accelerates your startup.

‍

Benjamin Netter, founder of Riot (YC W20), an employee security posture management platform, emphasized this point: “I raised my Series A and Series B with US VC firms. I don’t think I could have done that without the YC stamp.” He told me that YC’s prestige lasts beyond the three-month accelerator program. “You will always be a YC company, and that makes fundraising and hiring much easier, especially as a European founder.”

‍

Anne-Sybille Pradelles, co-founder of Formance (YC S21) agreed. While Benjamin mentioned investors, she focused on access to experienced founders. “One of the main reasons to do YC is to be surrounded by people who have built big companies before.” She mentioned that office hours with people like Nicolas Dessaigne from Algolia were especially useful when it came to international expansion. 

‍

Both Benjamin and Anne-Sybille are French. While Benjamin and Riot remain in Paris, Anne-Sybille moved herself and Formance to New York.

‍

2. Mindset differences

The way you get funded in Europe is an obvious business model and clear, sustainable growth. Europeans value stability more than Silicon Valley. 

‍

YC’s Silicon Valley mindset is the opposite. If the business model doesn’t work, let’s figure out a new one. Move fast, break things. 

‍

To some founders we spoke to, this mindset was one of the key differences between their European and U.S.-based founders.

‍

Hanna Marie Asmussen, founder of Localyze (YC S19), noticed clear differences between US batchmates and European founders like herself. “Many US startups in our batch hadn’t even started building their products, while we had already been operating for months. At the same time, those other companies were way faster and had a much leaner way of operating, so for us a lot of the experience was around “building the American way”. This was even stronger for us as we hadn’t worked in tech prior to Localyze, so I almost feel like we took away much more.”

‍

I can confirm this anecdotally. Anyone who hasn’t been to the Bay Area can’t possibly understand the difference between the speed and ambition there and anywhere else. That’s also what Robert, founder of Wordware (YC S24) found.

‍

He initially believed London had a strong AI community. That’s until he spent time in San Francisco. “This is where everything’s happening… If you’re not here, you’re playing on hard mode.” He described the density of talent and the sheer number of hackathons as a game-changer for their company’s trajectory. If there was an AI event in London every month, there’s one in San Francisco every day. 

‍

Robert and Wordware (which is hiring) have since moved to the Bay Area. Benjamin Netter, who stayed in Paris, mentioned another benefit: “YC teaches you where to set your expectations and your standards as a founder. That’s not something you learn in school or at most European accelerators.” 

3. Should You Move to the US?

‍

A major decision for European founders is whether to relocate to the US permanently. Many startups move as they get initial traction, both to sell to the bigger US market and for a more startup-friendly environment.

‍

The list of European startups that moved to the US is long. Startups who made the reverse move are few. But there’s no universal answer. It depends on the business itself and the founder’s long-term vision.

‍

Anne-Sybille said that for SaaS startups with global ambitions, moving to the US is an often necessary step. “Companies like Criteo and Dataiku all moved to the US around their Series A. It’s a pattern.” She did say that if you’re focused on European markets, relocating might not make sense.

‍

Benjamin Netter had a different perspective. Due to COVID-19, he had to return to France just before Demo Day (which was cancelled), and kept Riot based in Paris. “Creating a startup in Paris is much easier than in the US. I have the network here, I can recruit talent easily, and we were still able to onboard US customers from Paris.” 

‍

This is an important part of the decision: Where do you have your network? Where can you access the people you need? It might not make sense to throw away something you’ve built for years.

‍

4. Should you apply to YC from Europe?

‍

The YC application process is scary because it’s not a test you can study for. Even more so because it basically looks like a Google Form. It asks simple, open-ended questions that don’t have a single correct answer (but lots of wrong answers).

‍

But everyone I spoke with considers the effort worth it—even if you don’t get in.

‍

Localyze’s Hanna Marie advised founders to apply without overthinking: “I would say just do it, if you get accepted you can still see if you want to move forward but you meet the partners on the way and it’s not too much effort. Also, the questions they ask for the application are actually a great help in shaping your thinking about your company.”

‍

Whether you get in or not, filling out the application asks you hard questions you probably should be asking anyway. Besides, getting into YC can validate your business and thinking—even if you don’t take them up on it.

‍

5. The Lasting Impact of YC

‍

YC doesn’t end with Demo Day. You’ll always be a YC founder running a YC-backed company. All of the founders we interviewed still benefit from the experience years later. 

‍

Benjamin pointed out that “Even five years later, I can still book office hours with YC partners. When I was raising my Series A, they spent hours reviewing my deck. That level of support is rare.” He also described YC as a way to bridge the gap between European founders and the Silicon Valley bubble. “San Francisco works like an Indian tribe’—new startup learnings don’t leave SF. YC helps open that tribe to its founders, even those outside the US.”

‍

Anne-Sybille echoed this sentiment, emphasizing the strength of the YC alumni network: “Four out of my five closest founder friends are from YC. The network is invaluable, and beyond business, we’ve become real friends.”

‍

Conclusion

‍

As Europe is waking up to the need to innovate, improve startup culture and accelerate its growth, European YC founders are part of the “future that’s already here, but not evenly distributed”, that Europe desperately needs. 

‍

I’ve learned a lot from them about what Europe can learn from the Bay Area and YC specifically—and I hope the learnings translate into a more vibrant startup culture in Europe.

‍