San Francisco is unquestionably the number one global hub of the current AI boom. It’s a continuation of a storied tech ecosystem that keeps drawing tech talent to the West Coast and fuels sky-high valuations.
But special things are happening on the East Coast, and they’re being overlooked. New York is emerging as a strategic hub for many enterprise companies to call home. Close proximity to enterprise customers (especially in finance, media and healthcare) is a key draw. So is the depth of diaspora networks in the city that America’s influential cohort of European founders tap into for knowledge and support when turning stateside to build a company.
The fruits of momentum
While second to San Francisco in terms of share of overall US VC funding, New York’s startup ecosystem is a growth story that’s remained true throughout AI’s domination of startup funding in recent years. NYC commanded $28.5 billion in US VC inflows, or 13.3% of the national total in 2024. That amount raised has more than doubled since 2015. Over 12,000 startups call the city home, with the ecosystem growing 25.5% in 2025 alone.
Major AI players, including Meta, OpenAI, Hugging Face, Alphasense and Runway, have a large presence in New York, which boosts the city’s overall attractiveness. Coming before them was the earlier generation of startups that took a risk in being HQ’d in New York back when the city’s tech ecosystem wasn’t as established. A standout example is Datadog, founded in New York in 2010, when building a SaaS company in the US outside of the Bay Area was a novelty. Founders Olivier Pomel and Alexis Lê-Quôc recognised the advantages of being NYC-based, from a less competitive talent pool to proximity to customers, and the company has since grown into a billion-dollar revenue business and a NASDAQ mainstay.
Oliver and Alexis are European, and a new generation of European founders is walking in their footsteps. Conduktor’s decision to move its HQ to New York from Europe, following a 2024 Series B, is a good example. The data management platform startup had 40% of its revenue coming from the US and over 65% of its market is based there. The East Coast is a fantastic base for young companies to seize the opportunity of building a larger total US market share.
The unique draw for European founders
New York’s draw for European founders is an amalgamation of factors. As mentioned, New York offers close proximity to enterprise buyers, and that’s particularly helpful for founders coming to the US from another country. Easier access to decision makers allows for a smoother entry into the market and speeds up the time to winning customer logos for a B2B software product.
But that only scratches the surface. In my experience, New York boasts a local tech talent pool with stronger retention than the Bay Area, where engineering churn is common. European founders pair this with the time zone advantage that New York offers. Put simply, being based in New York makes it easier for European founders to manage tech talent based in Europe, as time zones are more closely aligned. A strategy of maintaining tech talent in Europe, paired with NYC talent that’s cheaper and less likely to churn compared to the Bay Area, is an effective one for European founders who need all the advantages they can to succeed when building in the US.
Then there are the ‘softer’ aspects. European founders often find New York more familiar in its culture, walkability and diversity than the Bay Area’s suburban sprawl. No matter where in Europe founders come from, they’re guaranteed to find a network of fellow tech talent and entrepreneur diaspora in New York. Local networks serve as a welcome resource that make launching and scaling in an unfamiliar country that little bit easier.
Advice before making the jump
Despite its advantages, New York doesn’t hold guaranteed success for European founders. There are potential blind spots to be careful of, as unfamiliarity with the realities of the US market or misplaced priorities can derail company-building efforts. Here are tips for a successful New York move based on my experience helping countless startups navigate their transatlantic scaling journey:
Navigating a new hiring market: US candidates are fantastic at selling themselves, whether that’s on LinkedIn or in the interview room. Be conscious of this by looking past impressive-sounding job titles on a CV in favour of a laser focus on practical experience
Launch criteria: Don’t rush your US launch. Lay the groundwork by winning the business of recognisable American customers first and preparing a tailored US website for launch (simply adding a US office address to a website can do miracles)
Sales leadership is crucial: To make inroads, hiring a US sales leader with a strong network is non-negotiable. Candidates with a builder career profile (i.e., experience scaling a sales team from $1M to $10M revenue) should be the priority
…but get the timing right: A VP of Sales should only be brought on board once founders have defined a strong product-market fit with a repeatable sales process and a clear ICP. This means having a few US-based reps with a small pipeline up and running before making that senior sales hire to build on the momentum and put the US footprint into scale mode
Leading from the front: To drive this initial traction, founders need to be leading efforts from the US, versus overseeing the market launch from afar. Being on the ground means new US hires can be properly coached and infused with the founder’s energy
And underpinning all of this is support from investors. VC partners with strong local networks can make introductions to other US-based founders and decision makers at large enterprises. Such opportunities can open the door to million-dollar deals. Investors who can’t offer that level of access are basically redundant to European founders at the specific moment of building and scaling in the US.
Looking past the West Coast
San Francisco will continue to be a centre of innovation, but for European B2B startups entering the US, New York offers better access to enterprises, a strong tech talent market with less churn risk and time zone alignment that makes it simpler to straddle two continents.
In the incoming wave of AI-driven disruption to B2B software, New York is a great place to be. With the right steps and partners, European founders have every opportunity to build a Datadog-scale success of a company.
About the author
Thomas Cuvelier is a Partner at RTP Global, based in New York, investing in early-stage technology companies across the US and Europe. He focuses on Pre-Seed to Series A investments, with cheque sizes ranging from $1 million to $10 million.
He has a background in computer science and statistics and experience across early-stage, growth and buyout investing. He holds an MBA from the Wharton School at the University of Pennsylvania and degrees in computer science and probability.
