US vs European valuations

It's well known in venture capital that US valuations are higher than European ones.

Why? The main reason is the US market is significantly bigger and therefore you can scale to a much larger size without thinking about what you need to change for other geographies.

Implications? UK and European startups that can as easily access the US market should have higher valuations.

This can be hard for European investors to get their heads around when they are used to what they are used to.

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