3 ms·

Europe is not less competitive. US companies/startups just happen to have more capital and also network effects (lots of tech companies are already there).

by csomar 3y ago

avmich 3y ago
I've heard some opinions about technicalities for small young companies which are easier in California than in Europe. Capital and networking are important, but it's something which changes slower, and some efforts could be put towards improving the regulatory environment.
nxm 3y ago
But it is - a few examples: - bankruptcy laws in the US encourage more risk taking by not financially punishing founders/investors in case of failure - more dynamic labor market… hire fast but also fire fast if required - less of a work/life balance culture - fewer government regulations
- NoZZz 3y ago
  This. Many banks as a condition of giving out a loan require a house as collateral. A house that's underwater also tacks a debt to your personal name for instance.
  - jjeaff 3y ago
    Very few tech startups are working with bank loans. Banks in the US will almost never loan to a new business without a personal guarantee and collateral.
- csomar 3y ago
  Most of the tech is concentrated in California. If this was about regulation/labor market, it would have happened some place else in the US. That was not the case. Regarding taxes/gov. regulations, the US also has its own share of crazy. I don't think all of these elements matter much (otherwise Estonia and Malta would be the tech hubs of Europe).
  - pfannkuchen 3y ago
    I believe California was much less regulated as you go back in time. Once a hotspot has started it might persist even into conditions that would have choked it early on.
847448rr 3y ago
Investors don't care where you are as long as they're confident you match a certain risk/reward profile. If they're piling money into US and US-acquired companies it implies expectations are lower for the European counterparts. The most emblematic trend in recent times to signal this is how Europe has had to focus on legislating ai to seem remotely relevant while the US and China dominate actual innovation in the field. If that's not admittance that the industry is uncompetitive I don't know what is.

Europe is not less competitive. US companies/startups just happen to have more capital and also network effects (lots of tech companies are already there).

by csomar 3y ago

Europe is not less competitive. US companies/startups just happen to have more capital and also network effects (lots of tech companies are already there).

avmich 3y ago

I've heard some opinions about technicalities for small young companies which are easier in California than in Europe. Capital and networking are important, but it's something which changes slower, and some efforts could be put towards improving the regulatory environment.

nxm 3y ago

But it is - a few examples: - bankruptcy laws in the US encourage more risk taking by not financially punishing founders/investors in case of failure - more dynamic labor market… hire fast but also fire fast if required - less of a work/life balance culture - fewer government regulations

NoZZz 3y ago
This. Many banks as a condition of giving out a loan require a house as collateral. A house that's underwater also tacks a debt to your personal name for instance.
- jjeaff 3y ago
  Very few tech startups are working with bank loans. Banks in the US will almost never loan to a new business without a personal guarantee and collateral.
csomar 3y ago
Most of the tech is concentrated in California. If this was about regulation/labor market, it would have happened some place else in the US. That was not the case. Regarding taxes/gov. regulations, the US also has its own share of crazy. I don't think all of these elements matter much (otherwise Estonia and Malta would be the tech hubs of Europe).
- pfannkuchen 3y ago
  I believe California was much less regulated as you go back in time. Once a hotspot has started it might persist even into conditions that would have choked it early on.

847448rr 3y ago

Investors don't care where you are as long as they're confident you match a certain risk/reward profile. If they're piling money into US and US-acquired companies it implies expectations are lower for the European counterparts. The most emblematic trend in recent times to signal this is how Europe has had to focus on legislating ai to seem remotely relevant while the US and China dominate actual innovation in the field. If that's not admittance that the industry is uncompetitive I don't know what is.