Not debating that it would be good to see more tech start-ups succeed in Europe. But there are a couple clear differences between Europe and the US. 1. Europe

Not debating that it would be good to see more tech start-ups succeed in Europe. But there are a couple clear differences between Europe and the US. 1. Europe is more linguistically fragmented than the US. For example, the EU has 24 official languages while the US effectively has two. Because of this, in Europe network effects and economies of scale are more difficult to achieve with products that could compete with YouTube, Instagram, and so on. Instead, many European products that are popular are those that don't rely on network effects: cars, appliances, clothing, and food. Meanwhile, because of its more cohesive market, the US has seen higher returns to investment in movies, music, and social networks. Thanks to having more resources, many of those products become enormously successful domestically and end up being exported. 2. The stock market generally plays a smaller role in financing companies in Europe than in the US. For example, the Czech JetBrains is not traded in the stock market at all, and the Swedish Spotify's debt-to-equity ratio is 47% while Meta's is 8%.[1] Two companies with equal future EBITDA streams have different valuations for their stocks if one of them is primarily debt financed and the other is primarily financed through the stock market. [1] https://ycharts.com/companies/SPOT/debt_equity_ratio https://ycharts.com/companies/SPOT/debt_equity_ratio https://ycharts.com/companies/META/debt_equity_ratio https://ycharts.com/companies/META/debt_equity_ratio Although admittedly this is an imperfect comparison.