A startup founder today faces a bold new question: where, exactly, should I launch my company? For years, the instinct was to flock to established tech capitals – Paris, London, Berlin – drawn by their bustling ecosystems packed with investors and talent. But now, a powerful shift is unfolding across Europe. Founders are stepping off the beaten path, embracing emerging cities that offer fresh promise and new playing fields.

Big tech capitals vs. emerging cities

The major hubs still hold undeniable appeal. They boast vast networks of investors and specialised professionals, iconic industry events, and faster access to corporate representatives. “Being in a big city means you’re at the pulse of opportunity,” one fintech founder reflected. Yet, the very scale that fuels their power often doubles as a hurdle – sky-high costs and fierce competition.

Enter the emerging cities – places such as Barcelona, Porto, or Manchester – that pulse with a different energy. Here, founders find fertile ground for growth at a fraction of the cost. They become central actors, crucial architects of their local ecosystems rather than one of many players lost in the crowd. At a recent innovation summit organised by HearstLab in Barcelona, founders described how these communities foster agility and close-knit support – qualities that can be rare in larger cities.

The ‘Barcelona Effect’ exemplifies this trend. Barcelona stands out not just for its vibrant culture but also for the rising startup scene powered by lower overheads and collaborative spirit. Entrepreneurs there speak of becoming ecosystem leaders, sparking innovation in ways that ripple far beyond their home base.

Navigating a hybrid path

For many, the answer lies in combining worlds. The hybrid model – splitting time and operations between established tech hubs and emerging centres – offers the best of both. It balances access to resources and high-level connections with cost efficiency and community immersion, creating a resilient blueprint for growth.

Take Manchester as a good illustration. This city is fast becoming a vibrant tech hotspot, particularly in e-commerce and health tech. Some startups have leveraged Manchester’s expanding support infrastructure and local talent pool while maintaining connections to London’s financial and investor scene. This hybrid presence enables them to scale rapidly, control costs, and stay plugged into industry channels.

No one-size-fits-all

There is no universal ‘best’ place to launch a startup. It hinges on your product, your goals, and where your team thrives. What’s clear is that the innovation map of Europe is expanding, growing richer and more diverse every day. Traditional urban powerhouses remain relevant, but alongside them, a new generation of cities is defining what it means to build a startup in Europe today.

If you’re ready to rethink where your company’s journey begins, look beyond the headlines. The future is being shaped in unexpected places – and maybe, just maybe, that’s where you belong.