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

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

#81

Post by rjsw »

ThomPete wrote: post #80
adaml_623 wrote: post #78

Earlier quoted context omitted.

Ok you have a valid point but since the article is full of kind of wishy washy questions I didn't feel guilty about adding some more into the mix. The title 'Why is Europe Failing to Create More Unicorns?' has an implicit bias in it. The question is saying that Europeans should create more of these massive new companies. 10 smaller companies might be better than 1 big company. 100 companies worth $10 million dollars…

Thats not what I am saying at all though. In fact I am very open in the essay to the question as to whether it's even something you would want. But the fact is that they have an effect on the world outside the US. Perhaps you are fine with that, I would love to see some more Europeans get into the game if nothing else to boost morality and have more people try and create companies.

Your essay does suggest to me that you think that companies like Uber and AirBnb are a good thing though.

If a proportion of those europeans who could run startups hold back from following certain business models then you will get fewer startups overall.

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

#82

Post by robwilliams »

adaml_623 wrote: post #78
hodwik wrote: post #66

Earlier quoted context omitted.

Why is that the more interesting question? Is there anything you can add to the discussion of substance? Or, perhaps, is this drive-by FUD all you have in the content holster?

Ok you have a valid point but since the article is full of kind of wishy washy questions I didn't feel guilty about adding some more into the mix. The title 'Why is Europe Failing to Create More Unicorns?' has an implicit bias in it. The question is saying that Europeans should create more of these massive new companies. 10 smaller companies might be better than 1 big company. 100 companies worth $10 million dollars…

>10 smaller companies might be better than 1 big company. 100 companies worth $10 million dollars each might provide the same number of jobs and the same services to the economy.

I'm not sure what point you're trying to make.

It's beneficial that Airbnb is so big because I can plan a cross-continent vacation using one website instead of searching for each city's/country's version of it (which may have poor customer service or be ran by scammers).

It's beneficial that Uber is so big because I can use one app to summon a car anywhere around the world instead of having to install a new app in every city/state/country.

Just because 10 companies could provide the same amount of service and jobs doesn't mean that it's beneficial to customers.

The question the OP is addressing is about growth limits in Europe, not about the moral value of large companies.

EDIT: I am not arguing for monopolies. Multiple companies with service around the world can and do compete.

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

#83

Post by wpietri »

wildmusings wrote: post #58
wpietri wrote: post #34

Earlier quoted context omitted.

Yes, I'm so upset that the government funded all the initial development of the Internet, crushing things like Compuserve and AOL and AT&T's videotex offering. Who knows where we could be today if only those had been allowed to flower. (Well, I know the planet would be 3 inches deep in AOL promotional mailers. But besides that.)

One example of successful state investment doesn't really say anything about what the ideal level of overall state economic intervention is. Research spending like DARPA isn't even representative of how Western governments regulate and tax.

But one example does prove that a general rule like "state intervention on innovation is considered harmful" is too shallow to be useful.

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

#85

Post by nakedrobot2 »

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'.

Because investors in Europe are a bunch of pathetic spineless banker types.

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

#86

Post by throwaway1967 »

notNow wrote: post #64
atemerev wrote: post #17

Earlier quoted context omitted.

Sure. More gun control -> more police expenses -> more taxes -> less innovation. Try opening a company in, say, France. (This was a cruel joke. Please don't, for the sake of your sanity).

Actually More permissive & lax gun laws -> More police militarization to preserve the competitive advantage -> More govt spending local or federal -> Less spending on other sectors such as health and education BTW I'm centrist on the issue of gun ownership & carrying but I just wanted to point out the flaw in your deduction.

> Actually More permissive & lax gun laws -> More police militarization to preserve the competitive advantage

Are you sure your arrow there means causation?

Explain like I'm five, why do you think the police feels it needs to compete with law-abiding gun-carrying citizens?

I've never heard of this silly idea before, but maybe I'm silly and you have a great argument for that.

If you had said "the more guns in criminals' hands, the more police militarization to preserve advantage" then I'd agree with you but I'd ask to see how you know the number of guns in criminals' hands.

0.001% of law-abiding gun holders are a problem for the police. 100% of criminals are a problem for the police, whether they're carrying guns, knives, or a closed fist.

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

#88

Post by vonnik »

Not sure that the premise of this article is even correct.

I can think of a lot of successful European startups -- Minecraft, Spotify, Skype, DeepMind, the list goes on... -- and just as many startups led by Europeans that have succeeded in America (Lending Club, etc.).

But if Europe has trouble supporting "unicorns", there are probably a couple reasons: 1) Gaps in the funding ladder. 2) Talent flight. 3) A preference for regulation. 4) Countries, like France, that combine technological conservativism with social rigidity.

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

#89

Post by kragen »

robwilliams wrote: post #82
adaml_623 wrote: post #78

Earlier quoted context omitted.

Ok you have a valid point but since the article is full of kind of wishy washy questions I didn't feel guilty about adding some more into the mix. The title 'Why is Europe Failing to Create More Unicorns?' has an implicit bias in it. The question is saying that Europeans should create more of these massive new companies. 10 smaller companies might be better than 1 big company. 100 companies worth $10 million dollars…

>10 smaller companies might be better than 1 big company. 100 companies worth $10 million dollars each might provide the same number of jobs and the same services to the economy. I'm not sure what point you're trying to make. It's beneficial that Airbnb is so big because I can plan a cross-continent vacation using one website instead of searching for each city's/country's version of it (which may have poor customer s…

If the ten companies interoperated, you could plan a cross-continent vacation using one website instead of searching for each city's/country's version of it. (And then you wouldn't be vulnerable to Airbnb, for example, demanding access to your Google Docs metadata in order to allow you to continue using their service.) You're making the argument that people used to make about how it would be impractical to have multiple long-distance phone companies or multiple long-distance computer networking companies.

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

#90

Post by dublinben »

kuschku wrote: post #71
smcl wrote: post #44

Earlier quoted context omitted.

What part? Is the incorporation of a company complicated\bureacratic? I know here in Czech Rep you pretty much need to have a local Czech speaker setup\registered\licensed with a certain status before you can create a new company. Or is there some capital requirements ("you must have €x,000 in the company accts to operate"), or lawyers fees that make it either tough\impossible for the early "ramen" stage?

In Germany, only very few legal types of incorporation allow the owners to be free of risk. Usually they require a high amount of money to start such a limited (so, in case of bankruptcy, all debt can be paid). There is now a mini-GmbH, essentially a type of Ltd. that can only handle a limited (pun not intended) amount of assets, but does not require you to have enough assets to pay back the debts. Then there are GbR…

Unsurprisingly, Soundcloud is actually incorporated in the UK. They might be a "German" company, but they seem to not find German business law sufficient or favorable.
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