How much can policymakers improve macroeconomic outcomes by encouraging the entry of high-performance startups? We construct a novel and comprehensive data set on startup ﬁrms in ten European countries and apply cluster analysis to identify distinct startup types and trace their development through early life. Three new stylized facts about entrepreneurial startup strategies transpire. First, we uncover ﬁve well-separated clusters of startups, which we label Basic, Large, Capital intensive, Cash intensive, and High leverage. Second, these ﬁve startup types are consistently present across countries, industries, and cohorts. Third, startup types are associated with speciﬁc life-cycle performance in terms of productivity, employment generation, and exit rates. Feeding these empirical results into an agnostic ﬁrm dynamics model, we quantify how much structural policy could improve macroeconomic performance by shifting the composition of startups towards high-performance types. We ﬁnd that substantial gains in aggregate employment and productivity may be reaped through policies that beneﬁt high-performance startups (such as large and capital intensive types) while discouraging the entry of underperforming startups (such as high-leverage ones).