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I agree and IMO a project like this would probably work better if the rules stipulated that it can only be used to fund startups. Eg: only companies younger tha

I agree and IMO a project like this would probably work better if the rules stipulated that it can only be used to fund startups. Eg: only companies younger than 3-5 years old, with fewer than 200 employees, and less than 100M in market cap. Such rules could help prevent established players from grabbing all the money.

rapsey 6y ago
So existing companies well versed in getting EU funds will make new companies and move some people over. They always have a way around and have enough influence to make sure there is anway around it. EU investments like these always go to the same pockets. It is a broken system but it makes the insiders lots of money. Lots of companies exist for the sole reason to get EU money and have absolutely zero interest in making any real products.
- tachyonbeam 6y ago
  There must be ways to specify that the companies cannot be subsidiaries, and that creating spinoffs for the purpose of collecting money will result in massive fines (eg. 100x what was collected). From what you're saying, the problem is not the fundamental idea of having the government fund tech companies, its political corruption inevitably preventing a sound execution of said idea.
  - rapsey 6y ago
    Political corruption is everywhere. A good idea in theory that is unimplementable in reality is not a good idea.
AdrianB1 6y ago
Tax system does not allow for that; employees need to be paid at least minimum wage per sector, not equity, otherwise tax people will shut them down and health insurance will not exist (it is paid as percentage of salary). Every year if you have equity you need to pay taxes on the appreciation of what you own, so if you have a small salary and some equity you have no money to pay the taxes on equity. Good developers will not work for small salaries and the startup will have no money to pay. And not the least, startups are shots to the Moon with the expectation that most will fail; you cannot do that in this case, if you guarantee the money there will be no motivation, if you don't guarantee any money there will be no funding. Investing is different in Europe, that's why there is no SV here.

rapsey 6y ago

So existing companies well versed in getting EU funds will make new companies and move some people over. They always have a way around and have enough influence to make sure there is anway around it. EU investments like these always go to the same pockets. It is a broken system but it makes the insiders lots of money. Lots of companies exist for the sole reason to get EU money and have absolutely zero interest in making any real products.

tachyonbeam 6y ago
There must be ways to specify that the companies cannot be subsidiaries, and that creating spinoffs for the purpose of collecting money will result in massive fines (eg. 100x what was collected). From what you're saying, the problem is not the fundamental idea of having the government fund tech companies, its political corruption inevitably preventing a sound execution of said idea.
- rapsey 6y ago
  Political corruption is everywhere. A good idea in theory that is unimplementable in reality is not a good idea.

AdrianB1 6y ago

Tax system does not allow for that; employees need to be paid at least minimum wage per sector, not equity, otherwise tax people will shut them down and health insurance will not exist (it is paid as percentage of salary). Every year if you have equity you need to pay taxes on the appreciation of what you own, so if you have a small salary and some equity you have no money to pay the taxes on equity. Good developers will not work for small salaries and the startup will have no money to pay. And not the least, startups are shots to the Moon with the expectation that most will fail; you cannot do that in this case, if you guarantee the money there will be no motivation, if you don't guarantee any money there will be no funding. Investing is different in Europe, that's why there is no SV here.