Klarna and Improbable: Europe's top startup founder factories

Key Takeaways

• Klarna leads Europe with 14 alumni founders reaching Series A; Improbable follows with 8
• Founders who worked at startups scaling from seed to Series C are nearly twice as likely to hit Series A themselves
• Investors should focus less on unicorn experience and more on hands-on scaling experience at earlier-stage startups

Klarna and Improbable are producing more successful startup founders than any other company in Europe, according to new research from VC firm Antler. The Swedish fintech and UK deeptech company have become talent factories whose alumni go on to build startups that attract serious funding.

Antler's report tracked which companies' former employees founded startups that reached Series A. Klarna leads Europe with 14 such founders. Improbable follows with eight. Most of the top global names are American, including Riot Games and LiveRamp, but these two European companies stand out on the continent.

Why scaling experience beats big-name credentials

The headline numbers are interesting, but the more important finding is about why certain companies work so well as training grounds. Antler analyzed 51,722 startups across the UK, Germany, France and Sweden that raised seed rounds between 2010 and 2021. The data revealed a clear pattern.

Employees who worked at a startup as it scaled from seed to Series C are nearly twice as likely to build startups that reach Series A themselves. On average, about 23% of European startups secure Series A funding. But founders with direct experience at a company during that critical scaling phase hit 45.6%.

"No other previous employment or experience comes close," the report states. This finding should change how investors evaluate founder backgrounds.

What makes Klarna and Improbable different?

Both companies share characteristics that explain their outsized influence on European startup talent. Klarna, with over 5,000 employees at its peak and 150 million global users, forced employees to operate at massive scale while maintaining startup speed. The company's aggressive international expansion exposed staff to the operational complexity of building across markets.

Improbable tackled deep technical challenges in distributed computing and spatial simulation. Its employees worked on problems most developers never encounter, building infrastructure that could handle millions of concurrent users. That kind of experience teaches systems thinking at a level that translates directly to founding companies.

The findings echo earlier analysis from VC firm Accel, which identified Klarna, Spotify and Deliveroo as the unicorns producing the most second-generation startups in Europe. A consistent pattern is emerging: the best founder training comes from high-growth environments where employees face existential challenges.

Investors are looking at the wrong signals

Christoph Klink, a partner at Antler, says the research shows investors are overrating big names. "They should actually be paying more attention to the time a founder spent at a Series B logistics startup that's far less mainstream," he says. "We had this feeling for a long time and we're a little surprised to see it confirmed so heavily in the data."

The report makes a counterintuitive point: working at a unicorn just before its IPO is less valuable to a future founder than fighting through a tricky Series A round. Late-stage companies have professionalized operations. The chaos and problem-solving of earlier stages teaches more applicable skills.

“The task for Europe's investors is to update their filters to find these founders and back them early.”

— Christoph Klink, Partner at Antler

This has practical implications for both founders and investors. Founders considering their next role should prioritize companies in active scaling mode over prestigious names. Investors should dig into which stage a founder experienced at their previous company, not just the logo on their resume.

What this means for European tech

Europe's startup ecosystem is still maturing compared to Silicon Valley. The continent has fewer companies that have completed the full journey from founding to IPO. But that's changing. As more European startups scale successfully, they create a talent flywheel: experienced operators who understand growth leave to start their own companies.

Klarna's role here is particularly significant. Despite its valuation dropping from $45.6 billion in 2021 to roughly $6.7 billion in 2022, the company trained thousands of people who now understand fintech operations at scale. That knowledge disperses into the ecosystem regardless of the parent company's stock price.

The same dynamic applies to Improbable. The company has raised over $3 billion, including a $500 million round from SoftBank in 2017. Even if its metaverse ambitions haven't fully materialized, the technical talent it developed now seeds new ventures across European deeptech.

Frequently Asked Questions

Which European companies produce the most startup founders?

According to Antler's research, Klarna leads Europe with 14 alumni founders who reached Series A, followed by Improbable with 8. Accel's analysis also identified Spotify and Deliveroo as major talent sources.

Does working at a unicorn make you more likely to succeed as a founder?

Not necessarily. The research shows that experience at a company during its scaling phase (seed to Series C) matters more than working at a late-stage unicorn near IPO. The challenges of early growth teach more applicable founding skills.

What percentage of European startups reach Series A?

On average, about 23% of European startups secure Series A funding. Founders with scaling experience at earlier-stage companies achieve a 45.6% success rate.

Why does scaling experience improve founder success rates?

Employees at rapidly growing startups face problems that translate directly to founding: hiring quickly, managing limited capital, making product decisions under uncertainty, and building systems that scale. Late-stage companies have professionalized these functions, offering less hands-on learning.

Source: Sifted