Insights from Scaling Stateside Episode #4 with Maria Palma, General Partner at Freestyle Capital
When should a European tech company expand to the US? It’s the question we hear constantly at USXP, and it’s one that Maria Palma, General Partner at Freestyle Capital, has a definitive answer for.
In our latest Scaling Stateside episode, Maria shared a striking observation from her decade in venture capital across New York, London, and San Francisco: “Every company that I’ve seen come from the US to Europe…that ultimately knew their market was in the US, every single one has told me we should have done that two years earlier.”
Every. Single. One.
The Information Gap European Founders Don’t Know They Have
Maria brings a unique perspective to the US expansion conversation. After five years in New York venture, three years in London, and nearly two years in San Francisco, she’s witnessed firsthand how information asymmetry affects European founders.
“When you’re a founder in SF right now, you see all the same content, but you kind of know the inside baseball,” Maria explains. “You’re like, ‘I hear that this company…’ and you’re like, ‘yeah, but that’s not really working.’ And we kind of know what’s happening there.”
European founders consume the same US content but lack the ecosystem density that provides crucial context. They don’t have the informal networks that tell them what’s actually working versus what’s just marketing. This creates unnecessary imposter syndrome.
“If it feels hard, it’s not you,” Maria emphasizes. “That is just what it always feels like.”
When US Expansion Actually Makes Sense
Not every European company needs to expand to the US. Maria offers a straightforward framework:
You probably should expand if:
- You’re selling SaaS to US enterprises
- Your primary customer base is in the US
- You’re building for a market that’s fundamentally US-centric
You probably don’t need to if:
- Your product is geography-specific (like Polish banking rails)
- Your market is primarily European
- Your business model doesn’t require US scale
But here’s the critical part: if you believe the US is your primary market, don’t overthink the timing.
The Cap Table Signal That Matters for US Hiring
One often-overlooked benefit of US fundraising? Talent acquisition.
“The hard thing if you start hiring in the US and you have no one US on the cap table, US talent is pretty sophisticated on that front and they will know if they recognize a US fund,” Maria notes. “It will just bring more legitimacy.”
This isn’t about vanity metrics. It’s about practical hiring advantages. When sophisticated US talent reviews your cap table and sees recognized US investors, it validates your commitment to the market. It signals that you’re not experimenting—you’re building here.
Building Relationships Before You Need Them
Maria’s advice on approaching US investors is refreshingly practical: get to know them when you’re not raising.
“The best time to get to know VC is when you’re not raising,” she says. “If you’re like, ‘hey, I’m an interesting founder. I’ll do my A in the US, but I’m here,’ just getting to know people like ‘I’m curious what metrics you look for, what you think is good.'”
This is especially important because Series A funds care deeply about metrics. Understanding what US investors look for—before you need the capital—gives you time to build toward those benchmarks.
The Advice European Founders Need to Hear
Perhaps the most valuable part of our conversation was Maria’s call for European founders to adopt more American optimism.
“Don’t listen too much to what VCs say,” she advises. “If you really believe in building this, just build it. You’ll be fine. You’ll figure it out. You really will.”
It’s not about ignoring feedback or being reckless. It’s about not letting VC opinions override your conviction when you’re building something you believe in.
“If you build a great product that your customers love and you find a way to grow it, you will find a way to get money. Traditional venture, not traditional venture or whatever,” Maria explains. “Build a great product that your customers love and you find a way to grow it.”
Why Maria’s Bullish on European Tech
Despite the challenges, Maria sees massive opportunity ahead for European tech ecosystems.
“The most important thing for European tech no one’s even talking about is that all the best talent is falling into tech,” she observes. “If you grew up in Germany and you have the Abitur and you’re going to marketing, good luck doing anything else. But if you go to a startup, you can do marketing, you can do customer success, you can keep growing. There is no better career path for anyone in Europe than a startup.”
This talent shift is fundamentally changing the European startup landscape. The best people are choosing startups over traditional corporate paths, and that’s creating a virtuous cycle of talent, experience, and innovation.
The Pattern That Keeps Repeating
Let’s return to Maria’s most important insight: companies that knew their market was in the US consistently wish they’d expanded earlier.
Two years earlier. Not six months. Two years.
What does this mean for your company?
If you’re a European founder building for the US market, the question isn’t whether to expand—it’s whether you can afford to wait. Every quarter you delay is a quarter your competitors are building relationships, understanding the market, and establishing presence.
The founders who’ve succeeded in the US don’t regret moving too early. They regret waiting too long.
Key Takeaways for European Founders
- Trust the pattern: If the US is your primary market, every successful company wishes they’d moved two years earlier. Don’t be the next one saying that.
- Understand the information gap: You’re consuming US content without the context. Find ways to access “inside baseball”—whether through advisors, investors, or networks like USXP.
- Cap table matters for hiring: US investors on your cap table provide legitimacy when recruiting US talent. It’s not vanity—it’s practical.
- Build relationships early: Connect with US investors before you need to raise. Understand their metrics and expectations while you have time to build toward them.
- Product trumps everything: If you build something customers love and find a way to grow it, funding will follow. Don’t let VC concerns override your conviction.
- Bring optimism: European founders could benefit from more American “can-do” attitude. If you believe in what you’re building, just build it.
Listen to the Full Episode
Want to hear more from Maria about her journey from manufacturing floors to venture capital, her investment philosophy at Freestyle, and her take on the future of European tech?
Listen to the full episode of Scaling Stateside wherever you get your podcasts:
And if you’re a European founder considering US expansion, we’d love to hear your story. Get in touch with the USXP team to explore how we can help you navigate the journey.
About Maria Palma: Maria is a General Partner at Freestyle Capital based in San Francisco. Originally from Wisconsin, she spent five years in New York venture, three years in London, and has been in San Francisco for nearly two years. Before venture, Maria was an operator at GE Healthcare and scaled a New York ad tech startup to $40 million in revenue. She earned her MBA from Harvard Business School.
About Scaling Stateside: A podcast helping UK and European venture-backed tech founders better understand the US expansion journey and US venture capital fundraising process. Hosted by David Rose and Matt Oxley of USXP.
This episode is powered by Wilson Sonsini, providing legal counsel for technology companies and growth enterprises. Learn more at wsgr.com.
Ready to scale stateside? USXP are the launch to revenue experts European tech scaleup companies count on for successful US expansion. Learn more about our services or schedule a consultation.
