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Pretty much yes, that's why all EU funded tech projects are half-assed. As soon as the EU public money dries up, all investors pull out as well because they kno
by ChuckNorris89 3y ago
Pretty much yes, that's why all EU funded tech projects are half-assed. As soon as the EU public money dries up, all investors pull out as well because they know nothing they do is meant to be competitive on the free market, they're just there to suck on the teat of easy EU money and take off when it's dry.
The sad part is, without EU money, nothing in tech would happen in the EU. We have no VC investors willing to put their money in something as risky as tech when they can put their money in much safer places with surer returns like real estate which sacred in the EU compared to let's say the US.
The EU start-up I was working for was looking for VC investors and we found some German guy who was like "yeah I can invest 100k in your company" at which point our boss was like "bruh, that will barely cover scientist, dev wages and infra for 3-5 months". Then came and American guy with an initial investment of 2 million. Nuff said.
- nprateem 3y agoHow would an investor pull out prior to an exit? Since they can't why would they invest in something they don't expect to be competitive. How could they suck on the EU teat? This makes no sense. As you point out, the real issue appears to be a lack of VC risk appetite for investing in early-stage startups in the EU vs the US.
- ChuckNorris89 3y agoYou misunderstood. As soon as the EU pulls out, so do the private investors. They're only along for the ride as long as the EU puts in most of the money and the risk.
- nprateem 3y agoWe must know different investors. What ride would they be on except to bankruptcy if they can't profit from their investment?