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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?

#221

Post by fsloth »

csomar wrote: post #116

The third reason I hear is that the US market is bigger and therefore it’s easier to get traction. Yet there are 503 million Europeans living inside the EU vs. 319 million US living in the US. If the size of the market was any indication of how many unicorns a market could create, Europe would be in the lead. So size of the market alone isn’t an explanation either at least not by comparing the numbers. I really don't…

Lots of the modern giants like Google are based on software and computers. Computing, electronics and semiconductors benefitted from being heavily invested in by the US government long before commodization of the technologies took place in the form of military applications and the like. Cultural and technological headstart in computing is one good explanation.

Most of Europe was in ruins after 1940:s, whereas the USA emerged from the war mostly unscathed and with a freshly mobilized manufacturing industry.

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

#222

Post by mapgrep »

I have trouble accepting any of the conclusions in this piece when it has significant factual errors or at least false implications.

Here are some of the EU rules listed in an apparent attempt to show Europe has more onerous regulations than the U.S.:

>There are rules for the curve of the cucumber to the bendiness of bananas.

This hasn't been the case since 2008. http://www.nytimes.com/2008/11/12/world/europe/12iht-food.4....

Also, according to the U.S. Congressional Research Service, "U.S. imports of some fresh fruits and vegetables also are subject to federal marketing orders that... create mandatory grade, size, quality and maturity requirements that apply to domestic and imported products." https://www.fas.org/sgp/crs/misc/RL34468.pdf

Just to take one example, here is one document where the USDA regulates potatoes for their air cracks, bruises, dirt, enlarged lenticels, external discoloration, flea beetle injury, sunburn, and growth cracks, among many other things. http://www.mipotato.com/CMDocs/MPIC/usda%20grade%20standards...

>Recently large vacuum cleaners and incandescent light bulbs were banned.

The EU has not banned incandescent light bulbs but is phasing out many types of incandescents. As it happens, so is the U.S. https://en.wikipedia.org/wiki/Phase-out_of_incandescent_ligh... https://en.wikipedia.org/wiki/U.S._Lighting_Energy_Policy#In... Here is a recent map of all the nations in the world phasing out such bulbs. Notice the U.S. and EU are listed at the same level of prohibition: http://blogs.scientificamerican.com/plugged-in/the-overly-dr...

>Recently the EU was looking into banning cinnamon used in cinnamon rolls because of a too high amount of coumarin, known to be causing liver damage if consumed too extensively.

Wildly incorrect, although there have been some misleading headlines so perhaps forgivable. What happened is that the Danish authorities ruled that a type of cinnamon swirl ("kanelsnegle") was not a specially exempt traditional or seasonal food. This meant it was subject to EU recommended daily limits on the ratio of coumarin per kg of dough. The Danish Food Administration had done a survey and found half of the nation's fine baked goods were probably over the line. Cue hysteria about the beloved rolls being banned (never mind that bakers could just cut back on coumarin, for example by changing quantity or type of cinnamon). Anyway what ended up happening is that the rolls were reclassified as a traditional national treat and thus exempt from the recommended limits.

http://www.npr.org/sections/thesalt/2013/12/25/256602581/whe... http://www.theguardian.com/world/2013/dec/20/cinnamon-intake... http://www.eubusiness.com/news-eu/denmark-food.wo7

FWIW the FDA regulates how much yeast, citric acid, Sarsaparilla, Sassafras, tallow, green walnuts, unmodified starch, and vanilla can go into foods, among many other ingredients. (see http://www.fda.gov/Food/IngredientsPackagingLabeling/FoodAdd...)

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

#223

Post by ThomPete »

petercooper wrote: post #216
ThomPete wrote: post #210

Earlier quoted context omitted.

Yes but historically Europe have had much more success with creating large companies so the question is what changed? Historically the EU used to be much more divided which is exactly why the harmonization process seems to have such a paradoxial result.

I might be wrong but I think it's because the sorts of companies that become "unicorns" nowadays are more dependent on cultural, language or social network aspects (Snapchat, Facebook, Airbnb, Pinterest) than manufacturing, drug, or oil companies ever were (all areas Europe has excelled in). If biotech or robotics ever take off in a huge bubbly way, I imagine we'll see a much larger of Europe unicorns coming to the t…

I think that is a great point. So is it that because of the market in the US it's easier to establish enough momentum what when you move into Europe you have the power to establish yourself there despite the different languages?

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

#224

Post by xacaxulu »

I think comparing cities against cities might be a more apt comparison, especially normalized for available investment amounts, population, etc. Remember that a number of US states rival single European nations in GDP, population, physical size, etc. I'd rather talk about Berlin vs Austin, London vs Manhattan, Paris vs Boston.

Second, is '# of $1B startups' even an important metric? Just like some employees prefer Europe for worker protections, smaller work weeks, paid maternity leave, healthcare unattached to employment status, etc, so some startups might find that their success has more to do with the markets they find themselves operating in and serving, rather than total income.

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

#225

Post by aianus »

briandear wrote: post #126
stretchwithme wrote: post #91

Earlier quoted context omitted.

Its number two, the ability to move to somewhere where you can keep more of what you create.

Why is this downvoted? It is exceptionally valid. Starting a company in France subjects you to almost punitive labor laws, horrible taxes and regulation about almost very aspect of your business. Even doing something as simple as buying a rental property and leasing it out in France is loaded with difficulty. For example, an eviction can take years. Leases are standard for three years with the tenant being able to ex…

> If if you were to build a unicorn you wouldn't be able to do anything with it except maybe cut it up and cook it in a sous vide: provided it wasn't imported from Spain or Poland in which case the farmers would drive tractors into Paris and set piles of shit on fire in protest.

I died.

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

#226

Post by pluma »

mamon wrote: post #140
cronjobber wrote: post #79

Earlier quoted context omitted.

Addendum: Note that I honestly think that it is basically true: Europe's capitalists will not only profit from the refugee crisis, but they will do so for precisely the same reasons US capitalists profited from diversity. I'm deeply sorry I can't discuss mechanism on this forum; it takes too much hard boiled cynicism to fully grok. Yet I'm serious: The refugee immigration will ultimately boost Europe's tech competiti…

"The refugee immigration will ultimately boost Europe's tech competitiveness" I don't think so. Most of the immigrants are uneducated people, with no willingnes of finding a job. They want to go to Germany because that's the country with highest benefits for unemployed. How would we benefit from THAT ?

Here's a thought: these people went through hell in order to get out of the misery they lived in. That's not exactly what I have in mind when I think of underachievers with no work ethos.

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

#227

Post by ex3ndr »

andreamazz wrote: post #172
npizzolato wrote: post #159

Earlier quoted context omitted.

> I heard so many times bullshit like "I don't know if you'll be alive in a year or two, so I can't adopt your technology" I'm not sure why you think this is bullshit. Most startups fail. It seems like good sense to be wary of taking a dependency on another business that might not be around in the near future instead of an alternative that has already proven itself in the market.

Yeah, the problem is that with this line of reasoning a startup is destined to fail. If I don't get clients, I can't keep my business open. That's what irks me. How can I prove myself in the market if I don't get a chance?

You know, i am from russia and thought the same way. At some point of our startup journey i met some US startups. I know that they have no customers, but instead of writing noting about customers, they create solid page that describes in details how they help people. And this is game changer - you will never think that this is bullshit and company is weak.

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

#228

Post by walshemj »

exelius wrote: post #214
Silhouette wrote: post #193

Earlier quoted context omitted.

Something like Uber could never have come out of Europe. A large company that is breaking the law while competing with regulated taxis and remaining unregulated themselves? That would never fly in the EU, This is a feature, not a bug. We do tend to regulate some areas more in Europe than the US, but from various on-line discussions about Uber in recent months, I have come to the conclusion that the original problem t…

> This is a feature, not a bug. I actually don't disagree with you; but my original point is that the US actively prioritizes giving companies space to operate without government intervention over protecting the rights of its citizens. It generally makes the US a worse place to live, but a better place to start a business. > Also, I don't know where you got the idea that in the EU you need to prove what you're doing…

I think those working in online poker etc would disagree - the local monopoly was protected very strongly.

And there are the non tariff barriers look how hard it is to import eu cars

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

#229

Post by hkarthik »

e5india wrote: post #145

There are a couple things missing from this article that really need to be fleshed out: 1. You're comparing the unicorns which is like comparing the top of the pyramid without measuring the base. In other words, where are the figures for seed-round startups? What is the amount of capital available to startups at the different stages in the business life cycle? Without those numbers we can't really tell if this is a m…

Curious which Texas startups are considered unicorns? Last article I read didn't mention any.

Google only pulled up this recent article: http://www.bizjournals.com/austin/blog/techflash/2015/09/sor...

Are there unicorns coming out of Dallas and Houston, but not Austin? I find that hard to believe.

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

#230

Post by pluma »

donkeyd wrote: post #20
Asbostos wrote: post #16

He mentions the multiple languages. I don't understand why Europeans stick to their local languages when they all know English anyway. Are they trying to keep foreigners out? Surely they realize there's a huge social cost of having your own minority language. This problem exists in China too but most people recognize the need to learn the standard Mandarin so they're largely bilingual. Dialect at home and Mandarin ta…

> they all know English anyway Not all of us speak English.

I haven't seen any serious tech companies in Germany that don't require at least basic English skills.
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