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> At this points it looks like Germany is almost allergic to innovation. > Their government introduces more bureaucracy for companies, discouraging investments
by mdekkers 3y ago
> At this points it looks like Germany is almost allergic to innovation.
> Their government introduces more bureaucracy for companies, discouraging investments there.
I made the mistake of trying to build a startup in Germany. Not only is the overall total level of taxation absolutely killing us, not to mention the absolute lack of R&D support that is available almost everywhere else in the EU, the local tax authority just handed me an assessment for 2024 and pls pay up in 6 weeks time.
I’m writing them a “no, thank you” note because I’m shutting up shop. We are self funded, were about to reach MVP and look for some seed funding, and the German taxation essentially killed us at short notice.
There are two types of businesses that can work in Germany: small businesses and massive enterprises. Everyone else is forced to stay in their place.
- diarrhea 3y agoThat is at odds with the observation that the German Mittelstand arguably carries the country’s economy in large parts. There are many world leaders there, hiding in niche markets. For how that lasts remains to be seen.
- mdekkers 3y agoThe German Mittelstand model is indeed successful for those organisations that fit that model. Very often, many of the properties that make the Mittelstand work are not that successful for startups. My personal story is just anecdata, but the German (and European, in general) startup stories are relatively few and far between, so I know I am part of a wider pattern. It is clear that the EU Regulates (and taxes!) whilst the USA innovates. Once I dig myself out of this taxation hole I’m trying again in the USA.