EU report finds venture capital drives startup relocation abroad

A study by the European Commission has shown that a venture-capital (VC) backed startup is ten times more likely to leave its country of origin than its non-funded counterparts.

The Joint Research Centre (JRC) published on 07/04/2026 a study on the trend among European startups to relocate their headquarters abroad, noting that: "The relocation rate of European VC-backed startups is in the order of 3.3% - 4.3%. This number drops down to 0.3% - 0.5% for comparable non-VC backed startups." The JRC also said that the United States was the dominant destination for relocating startups.

The study showed that this significantly higher probability suggested a strong influence from investors, particularly American ones, who may demand a change of registered office to facilitate the management of their portfolios, gain access to their local networks or prepare for an initial public offering (IPO) on markets.

However, the document also showed that there were nuances to consider when it comes to the relocation of startups: "97% of the VC-backed companies that relocate are doing it only…