American investors often underestimate the need for a physical management presence in Italy. Successful integration requires local leaders who can liaise with suppliers, customers, and authorities. Attempting to manage an Italian acquisition remotely from the US or another European hub is a common point of failure.

Rather than choosing a headquarters based on financial hubs like London, Pacific Avenue based its main European office in Paris. This decision was driven entirely by the location of the specific, highly sought-after individual they hired to lead their European efforts after an 18-month search, prioritizing key talent over geography.

When scaling, the firm chose Europe as its first growth vector because it allowed them to replicate their exact strategy in the same industries and check sizes. This approach minimizes strategic variables, viewing geography as the most "close in adjacent" move before tackling different deal sizes or verticals, ensuring operational consistency.

To ensure cultural consistency during its European expansion, the firm implements a structured program, including mid-level staff rotations, US leadership actively supporting the new team, and mandatory in-person meetings every other month. This treats culture as a tangible asset that must be actively managed and transferred.

Instead of concentrating its sales force in one region, Deel hired individual salespeople in various countries early in its journey. This counterintuitive move, often criticized as defocusing, allowed the company to quickly test and understand multiple markets in parallel. This strategy was key to rapidly ramping up a global go-to-market motion with localized insights.

Unlike US startups serving one large market, Legora's Swedish origins necessitated immediate expansion into different countries with unique languages and laws. This built a core competency in multi-market operations, making global expansion a natural next step.

The CEO of Korean startup Apollon, who moved his family to Cambridge, argues that sending a representative is insufficient for US expansion. He advises that the CEO must be physically present "on the ground" to build trust, navigate the ecosystem, and demonstrate commitment—a crucial lesson for any international startup targeting the US.

When entering challenging markets, large Western companies often operate in proximity. This creates a de facto ecosystem where participants share similar operational norms and contractual expectations, reducing friction and risk for all involved.

European firm Permira successfully entered the US not by just opening an office, but by relocating its top talent, empowering local decision-making, and accepting years of minimal activity to build relationships and market knowledge before scaling.