Why Is Europe Failing to Create More $1B Startups?

#1

Post by ThomPete » Tue, Sep 15, 2015, 1:33 PM UTC

Why Is Europe Failing to Create More $1B Startups?
000fff.org

Re: Why Is Europe Failing to Create More $1B Startups?

#2

Post by veb » Tue, Sep 15, 2015, 1:41 PM UTC

Awesome read, but you write that Europe has no SV or NYC. I'd say that it does have a NYC: London.

London is the centre of finance in Europe. It utterly dominates.

Re: Why Is Europe Failing to Create More $1B Startups?

#3

Post by atmosx » Tue, Sep 15, 2015, 1:42 PM UTC

Lack of investors. Simple as that. Companies that run on deficit for 5-10 years can not survive in Europe. Facebook, twitter, etc. Wouldn't be able to survive in Europe, simple as that.

ps. I hate the word 'unicorn'.

Re: Why Is Europe Failing to Create More $1B Startups?

#4

Post by afsina » Tue, Sep 15, 2015, 1:43 PM UTC

State intervention on innovation is considered harmful.

Re: Why Is Europe Failing to Create More $1B Startups?

#5

Post by ThomPete » Tue, Sep 15, 2015, 1:44 PM UTC

atmosx wrote: post #3

Lack of investors. Simple as that. Companies that run on deficit for 5-10 years can not survive in Europe. Facebook, twitter, etc. Wouldn't be able to survive in Europe, simple as that. ps. I hate the word 'unicorn'.

I hate the word unicorn too, but it's shorter than private market companies with a valuation of more than $1 billion :)

With regards to lack of investors I don't think it's as simple as that. If it was only a matter of investments then surely US investors or Asian investors could just come in with the money. There is something that makes European VCs risk averse and keep american investors out of Europe IMO.

Re: Why Is Europe Failing to Create More $1B Startups?

#6

Post by scrollaway » Tue, Sep 15, 2015, 1:44 PM UTC

Site is struggling.

Mirror: https://archive.is/qBEfh

Re: Why Is Europe Failing to Create More $1B Startups?

#7

Post by atmosx » Tue, Sep 15, 2015, 1:45 PM UTC

afsina wrote: post #4

State intervention on innovation is considered harmful.

What about gun control? Does that stop innovation too?

Re: Why Is Europe Failing to Create More $1B Startups?

#8

Post by rubidium » Tue, Sep 15, 2015, 1:45 PM UTC

first thought: not enough horns to go around and add to the horses. second thought: europe=continent. US = country. third thought: what good does this question do us?

Re: Why Is Europe Failing to Create More $1B Startups?

#9

Post by jleyank » Tue, Sep 15, 2015, 1:45 PM UTC

I would think that the (mandatory) benefits required for companies in Europe (or even outside the US) raise the bar for startups. More $$ is required, more paperwork to ensure compliance, ... On the good side, this might/should act as a filter. On the bad side, money flows along the path of least resistance.

I guess this is an argument for accepting remote work. There are lots of talented people in places where they like living. How (new) companies deal with this will determine how the talent pool is used. As everybody argues there's insufficient talent, by definition there's insufficient talent wherever you are.

Re: Why Is Europe Failing to Create More $1B Startups?

#10

Post by happyscrappy » Tue, Sep 15, 2015, 1:47 PM UTC

atmosx wrote: post #3

Lack of investors. Simple as that. Companies that run on deficit for 5-10 years can not survive in Europe. Facebook, twitter, etc. Wouldn't be able to survive in Europe, simple as that. ps. I hate the word 'unicorn'.

Unicorn does sound silly but probably accurately reflects your likelihood of creating such a company.