Cheap startup hubs probably don't exist. They are hubs because everybody moves there, which inevitably makes housing expensive. The trouble with London is that if your funding is in USD or EUR the exchange rate exacerbates the problem.
There are upsides too, however. Many european countries require entrepreneurs to make very high social security contributions regardless of earnings. In some cases as high as EUR 350 for earnings of 0, so that counts towards the burn rate as well. In the UK the basic rate of NI contributions for the self-employed is GBP 2 (USD 4) a week, which covers health insurance excluding dental.
There are upsides too, however. Many european countries require entrepreneurs to make very high social security contributions regardless of earnings. In some cases as high as EUR 350 for earnings of 0, so that counts towards the burn rate as well. In the UK the basic rate of NI contributions for the self-employed is GBP 2 (USD 4) a week, which covers health insurance excluding dental.
(currency symbols don't appear to work here...)