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“Germans don’t do tech startups” is obviously clickbait but it’s equally obvious that Germany can’t compete with SF when it comes to startups. As a Dutch founde
by kvz 8y ago
“Germans don’t do tech startups” is obviously clickbait but it’s equally obvious that Germany can’t compete with SF when it comes to startups. As a Dutch founder of Germany based scaleup Transloadit.com I’d say taxes and workforce-legislation are more prohibitive than a lack of funding (tho it may also be a problem for others as clearly there’s less going around). I realize why taxes and protection of the workforce are necessary and am happy to live in a country that sands down some sharper edges of capitalism, but when you are just starting out, it’s overwhelming the amount of money you can’t allocate for more growth, and the commitment/risk that comes with having people on the payroll. Even though we have work, and money to spend on having that done, going that route is like the last resort because it’s so scary (maybe there isn’t money/work next year, what if they become sick, it could just ruin the company). Not even talking about resources needed to get acquainted and comply with the rules. So currently we try to work with freelance/invoicing as much as possible, but that comes with its own set of legal constraints and high costs. Feels a bit like driving with the emergency brake on. If somehow the government could have a special set of lightweight rules for folks just starting out, I think you’d see more startups flourish.