How to Move Your European Startup to Texas, United States: A Founder’s Guide

Why European Startups Are Choosing Texas Over California

(Action-oriented, focuses on practical advice)

In recent years, a significant shift has emerged in the global startup landscape: European founders and established unicorns are increasingly choosing Texas over California as their U.S. base of operations. This trend is reshaping the entrepreneurial ecosystem and offering new opportunities for both incoming innovators and local startups.

The Decline of the California Dream

For decades, California, particularly Silicon Valley, has been the gold standard for startups, attracting ambitious entrepreneurs worldwide. However, several factors have contributed to the waning allure of the Golden State for European founders:

• Escalating Costs: California’s high real estate prices and operational expenses make it challenging for startups to sustain and scale.
• Intense Competition: The dense concentration of startups in California leads to a saturated market, making it difficult for new entrants to gain visibility and secure funding.
• Quality of Life Considerations: European founders often seek a more balanced lifestyle. California’s fast-paced environment and high living costs can detract from personal well-being.

Texas: The Emerging Hub for Innovation

Texas, on the other hand, presents a compelling alternative, attracting European startups with its favorable conditions:

• Economic Advantages: Texas offers a lower cost of living and a business-friendly regulatory environment, enabling startups to allocate resources more efficiently.
• Robust Startup Ecosystem: Cities like Austin, Dallas, and Houston are experiencing rapid growth in venture capital funding, incubators, and accelerators. Austin, in particular, has become a leading tech hub with 16.3% of jobs in the tech industry, surpassing the national average of 9%.
• Access to Capital: In 2023, Texas startups raised $6.8 billion in venture capital, positioning the state as the fourth-largest in the U.S. for VC investment, following California, New York, and Massachusetts.
• Business-Friendly Policies: Texas is renowned for its pro-business stance, including no personal or corporate income tax, making it an attractive destination for entrepreneurs seeking a conducive environment for growth.

European Unicorns Making the Move

Several prominent European startups have recently relocated their headquarters to Texas, exemplifying this trend:

• IntraBio: Originally based in Oxford, UK, this biopharmaceutical company moved its headquarters to Austin in April 2024 and secured $40 million in funding, achieving unicorn status.
• Manna: An Irish drone delivery startup, Manna, launched its U.S. operations in the Dallas-Fort Worth area, leveraging Texas’s strategic location and supportive business climate.

Strategic Steps for European Founders in Texas

For European entrepreneurs considering Texas as their U.S. base, the following steps are crucial:

1. Engage with the Local Ecosystem: Participate in events, conferences, and networking opportunities to build relationships within the Texas startup community.
2. Understand Legal and Regulatory Frameworks: Consult with legal experts to navigate the specifics of establishing a business in Texas, ensuring compliance with state and federal laws.
3. Develop a Tailored Funding Strategy: Research local venture capital firms and angel investors to identify potential funding sources aligned with your business objectives.
4. Leverage Talent Resources: Tap into Texas’s educated workforce, bolstered by renowned universities and a growing influx of skilled professionals. The state has seen a significant increase in registered businesses, nearly doubling over the past decade.
5. Integrate into the Community: Active participation in local initiatives and collaborations can enhance your startup’s visibility and integration into the Texan market.

The Future Landscape: Texas as the New Global Startup Hub

The migration of European startups to Texas signifies a transformative period in the U.S. entrepreneurial ecosystem. This influx of international talent and innovation not only enriches the local economy but also fosters a diverse and dynamic business environment. As Texas continues to rise as a global startup hub, both new and established companies stand to benefit from the state’s unique blend of opportunity, resources, and quality of life.

Texas: Ranks Among the Top States for Entrepreneurs

The shift from Silicon Valley to Texas is part of a broader trend of European startups relocating to the U.S. This movement is driven by various factors, including access to a larger market, increased funding opportunities, and a more streamlined regulatory environment. Notable European startups that have made the move include:

• 11x (UK) – GenAI-powered sales technology, now operating in the U.S.
• Miro (Russia) – Collaboration software with a significant U.S. presence.
• Grammarly (Ukraine) – Digital writing assistant, expanding in the U.S.
• Talkdesk (Portugal) – AI-powered cloud customer service platform.
• Chainalysis (Denmark) – Cryptocurrency compliance services.
• Snyk (UK) – Cybersecurity for software developers.
• Collibra (Belgium) – Data intelligence platform with U.S. presence.
• Hugging Face (France) – AI machine learning platform with U.S. headquarters.

Why European Founders and Unicorns Are Ditching the California Dream for Texas

This shift in the startup landscape is more than just a relocation of businesses—it’s a signal that the entrepreneurial ecosystem is evolving. European founders are leaving the high costs and fierce competition of California for the lower operational costs, thriving startup ecosystem, and business-friendly policies of Texas. Key reasons include:

• Lower Costs: Affordable living and business operations in Texas.
• Thriving Ecosystem: Cities like Austin, Dallas, and Houston offer ample VC funding and accelerators.
• Business-Friendly Policies: Texas boasts no personal or corporate income tax, a key factor for entrepreneurs.
• Tech Hubs: Austin is a leader, with Dallas and Houston growing rapidly.

A Roadmap for European Founders in Texas

For European founders considering the move to Texas, the following roadmap can help ensure a smooth transition:

1. Networking: Engage with local startup communities to build relationships.
2. Legal Setup: Seek expert legal advice to ensure state and federal regulations compliance.
3. Funding: Connect with Texas-based venture capital firms and angel investors.
4. Talent Recruitment: Leverage local universities and the growing influx of skilled professionals.
5. Community Engagement: Get involved in local initiatives to enhance your startup’s visibility and integration.

Statistical Insights on Texas’s Growing Startup Scene

• 47% increase in foreign-led startups in Austin in 2023.
• $5 billion in venture capital funding raised by Texas startups last year.
• 12% of Texas startups are international, highlighting the state’s growing appeal to global entrepreneurs.

Conclusion: A Texas-Sized Opportunity for European Startups

The migration of European startups to Texas is a testament to the state’s burgeoning reputation as a global startup powerhouse. As Texas continues to attract innovation and talent from Europe and beyond, it is poised to become the next big startup hub, offering new opportunities for entrepreneurs and local businesses.