European Expansion Guide
Europe is the most accessible region for expansion. Provided you don't underestimate it.
THE MISSION
KEY FIGURES
Find out in this guide
A neighbor is not a province
Belgium is the first instinct of almost every founder interviewed, and often a false good idea: a small, bilingual market with high labor costs. At Hiflow, it took 5 years to succeed there, versus 2 years in other markets.
One country at a time, with hard thresholds
Hiflow only opens a new market once the previous one reaches €1–2M in revenue: Belgium in 2020, Spain in 2022, Italy in 2024. The first country builds the playbook; the second replays it.
Centralize what scales, localize what blocks adoption
At Qonto, 80% of the product is identical across its 8 markets and 20% is adapted locally. Tech, product and finance stay at headquarters; B2B sales, partnerships and customer success are localized early.
A neighbor is not a province
Belgium is the first instinct of almost every founder interviewed, and often a false good idea: a small, bilingual market with high labor costs. At Hiflow, it took 5 years to succeed there, versus 2 years in other markets.
One country at a time, with hard thresholds
Hiflow only opens a new market once the previous one reaches €1–2M in revenue: Belgium in 2020, Spain in 2022, Italy in 2024. The first country builds the playbook; the second replays it.
Centralize what scales, localize what blocks adoption
At Qonto, 80% of the product is identical across its 8 markets and 20% is adapted locally. Tech, product and finance stay at headquarters; B2B sales, partnerships and customer success are localized early.
SUMMARY
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Nearly 80% of Galion members are already present in Europe or plan to expand there. And yet, many make the same discovery: European expansion seems closer, more accessible, and less risky than the United States, until it actually has to be executed.
European expansion seems more accessible than the United States. It's often this impression that leads to the first mistakes.
Borders seem permeable, customs sometimes similar, regulations partially harmonized. But on the ground, each country remains a market to conquer almost from scratch. Languages, business culture, sales cycles, payment methods, regulations: everything changes from one country to another. Europe looks less like a single market and more like a collection of interconnected mini-markets.
The stories of the 15 founders interviewed demonstrate this. Some expanded into too many countries too quickly and dispersed their resources. Others discovered that their French clients didn't open any doors abroad. Still others underestimated the real cost of a "nearby" market, like Belgium or Spain. All learned that European execution is a discipline, not a natural extension of the French model.
This guide is structured around three concrete questions:
- Should you really go to Europe, and why now? Understand the real reasons for opening a country, distinguish good signals from illusions, and avoid symbolic expansions that create complexity without creating value.
- Which countries to target, and in what order? Build your selection framework, sequence market entries, and assess the real maturity of a market for your product and sector.
- How to organize for sustained success? Balance centralization and localization, recruit the right profiles, and make dispersed teams work without diluting execution in the main market.
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“This guide doesn't offer a universal answer. It offers keys to understanding, built by those who have been there. European expansion is not a formality. It is a discipline.”
JB Rudelle, Co-founder and Chairman of The Galion Project
Frequently asked questions about European expansion
Which European country should a French startup start with?
There is no universal answer. The founders interviewed combine four criteria: market size and purchasing power, cultural proximity, maturity of the segment, and existing traction. Germany brings pan-European credibility in B2B; Spain and Italy respond quickly in B2C; Belgium, the natural reflex, is often too small to justify a dedicated team.
Should you open several European countries at the same time?
Not before proving you can open one. AB Tasty opened the UK, Germany and Spain in the same year, and the organization became scattered. The rule that emerges: the first country builds the playbook, the second replays it, and parallel launches become an option from the third. Before taking on any fixed costs locally, sign a few contracts from headquarters.
Do you need a country manager to open a new country?
Not a local “mini-CEO”, who often ends up rebuilding a parallel company. The founders of Phenix, Planity and Theodo recommend instead an experienced salesperson or Head of Sales reporting to the French leadership team, tasked with applying the existing playbook. The title can grow as the local team takes shape.
How much does it cost to open a European market?
From a few hundred thousand euros to one or two million per country, compared with the ten to twenty million often cited for the United States. Hiflow invested about €1M in Belgium and €2M in Spain. Add a fixed administrative cost per country (entity, accounting, lawyers), which quickly adds up across six or eight markets.
Can you grant BSPCE to employees based abroad?
No: BSPCE cannot be granted to employees based outside France. Animaj uses BSA warrants for its teams in the UK and Spain, without the same tax benefits, which creates differences in compensation packages between countries. To learn more, see the Galion BSPCE Kit.
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