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Y Combinator’s European founder intake continues to grow

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Re: Y Combinator’s European founder intake continues to grow

#181
I will list some problems / challenges Europe has:

- different languages: even with simple SaaS you might need to do a demo.

- different cultures: marketing in Spain is different than in Germany, different in Poland, etc. so market is very fragmented. Even Germany is much more diverse than people think (the joke is: Balkan starts just north of Munich)

- much more complex laws

- recruitment is harder: candidates are much more conservative.

- cultural similarities: entrepreneurs are considered as a failure

It is just harder. Not impossible but harder.

Re: Y Combinator’s European founder intake continues to grow

#182
Israel does extremely well with startups and exits notwithstanding cultural differences (e.g. weekends are not the same with the rest of the western world). What are the big differences between what Europe does vs. what Israel does? Risk-aversion may be one aspect but I doubt its the only one. There are probably a whole lot of factors.

Re: Y Combinator’s European founder intake continues to grow

#183

Earlier quoted context omitted.

Which European country are you referring to?

The 1 year parenting leave makes me think Norway? Or anything Scandinavian at least… here in the Netherlands it’s something like 16 weeks for women and 7 days for men? It was 2 days last year but it recently changed.

germany has the same (1 year) but doesnt have a 33 day PTO minimum.

Re: Y Combinator’s European founder intake continues to grow

#184

Earlier quoted context omitted.

Well the question that might be cynical is: do they actually mean it? Like saying, "oh at least you tried!"/"good for you!"/"you learning something right!"?, this is something I get. No one ever asked, "What went wrong, what went right?" / "What did you learn, what would you do differently?" / "Next time you'll try something hit me up!" / "I have something I'm working on, check this out, are you interested?" / "We sh…

+1. Having worked at both, the main difference between SV and Europe is "share your failures so that everybody can learn" vs "downplay your failures so that you look better".

Maybe related but as a contractor I've noticed that working with EU clients there's so much posturing, pretend professionalism, suit and tie kind of guys throwing around titles, red tape etc. US clients are way more casual and to the point.

Re: Y Combinator’s European founder intake continues to grow

#185

Earlier quoted context omitted.

If we’re talking Zurich specifically, the difference would probably only be 2-3X less than FANMAG/ETC. London salaries are high too (not Zurich levels from what I’ve seen), but that market is now separate from the EU. But most places in Europe with tech scenes and outsized VC investment, eg. helsinki, stockholm, berlin, amsterdam, etc you’re talking 5X less salary than in Silicon Valley. Given the tech talent in thos…

> helsinki, stockholm, berlin, amsterdam, etc you’re talking 5X less salary than in Silicon Valley. Certainly not for the same seniority level (and not considering stocks, which people in those places do get) Or you're telling me that someone making 60kEUR in Berlin could be transferred to SV and their salary would immediately flip to $300k on the payslip? (no promotions/stock/etc) Realistically, more like 2x, 2.5x,…

Yes, I have 10 years in SV and I if I moved back to Stockholm my compensation would be approx 1/5 of what I have now. It’s ridiculous.

Re: Y Combinator’s European founder intake continues to grow

#186
post #82

In my experience (Belgian guy that dabbled a bit with EU VCs for my SaaS) Europe is very risk-adverse, and you either have to give up ridiculous amounts of equity for a little amount (i.e. 50k€ for a 25% to +50% stake) when not established yet, or have a recurring revenue of at least 50k€/month to get reasonable propositions. Also, European culture is slightly different: most people consider a startup failure as some…

They also pay a fraction of US jobs so tech talent doesn’t hang around those areas

Re: Y Combinator’s European founder intake continues to grow

#187
post #154
post #116

I am an American founder that accidentally built a company in Europe. I hired my first person there, and through the path of least resistance, most of our 45 person team is based in Europe. I believe I am playing 'business' on easy mode compared to European founders. As an American founder it's pretty easy for my US company to pay my European team as contractors. European founders have to comply with European employm…

You're cheating the system, though. The system exists in order to support the way of life in these countries, by bringing your American employment attitudes to Europe you're not really building a company in Europe by any measure: you're building an American company. Your company is benefitting from the robust systems in Europe, without contributing. There are people you want to hire in Europe _because of people payin…

You have to admit though that maternity leave from day one which often comes with obligations like keeping the position open (so you have to fire someone who has already being doing the job for a year+ if the mother comes back) is a ridiculous requirement. Sure, it makes sense for a huge employer where those things are just cost of doing business and you can afford to hire enough people to cover for that. It absolutely kills small businesses though.

Fortunately people find ways around those laws and governments in developing countries don't care much but it puts you in position to fight the law from day one. The culture in Europe needs to change if we want people trying their hands on small businesses more.

I own a small successful business. I will never hire any employees. That's why I avoid working with anyone in my country and will not open an office. Frankly I would prefer to close shop and enjoy the rest of my life in an unproductive way than to deal with the burden of government regulations when it comes to employing people.

Hiring someone just for them to go on maternity leave after 2 months and then coming back (or not, not allowed to ask when) in 1/1.5/2 years and me being forced to find replacement while keeping the position open? Seriously, for a company which would have at most several employees and where everyone has their distinct role?

Re: Y Combinator’s European founder intake continues to grow

#188
post #154
post #116

I am an American founder that accidentally built a company in Europe. I hired my first person there, and through the path of least resistance, most of our 45 person team is based in Europe. I believe I am playing 'business' on easy mode compared to European founders. As an American founder it's pretty easy for my US company to pay my European team as contractors. European founders have to comply with European employm…

You're cheating the system, though. The system exists in order to support the way of life in these countries, by bringing your American employment attitudes to Europe you're not really building a company in Europe by any measure: you're building an American company. Your company is benefitting from the robust systems in Europe, without contributing. There are people you want to hire in Europe _because of people payin…

Since when is "the system" the thing that is supposed to win? To me, it seems more like the system is cheating the startup.

There's validity in working around or gaming systems so that a company has a chance of growing and thriving. The tactics used (contractors instead of employees, etc.) are perfectly legal. People are getting paid per an agreement, and they spend their income in their country/society, which disperses the benefits. A startup saddled with year (or two) long maternity leave and other such extreme requirements would make the risk too high.

These regulations create a regulatory capture situation where only large, established, or very well financed businesses can survive. Kudos to the agile and clever startups that find ways to make it, regardless. One should be on the side of the people, not the system.

Re: Y Combinator’s European founder intake continues to grow

#189
post #93

Earlier quoted context omitted.

The root of the problem is that the EU funding system is just a bad way of going about funding innovation. The US private VC model is superior in every way.

How is it superior? I linked to a description of YC's top companies: they lose hundreds of millions of dollars a year . Aren't successful companies supposed to, you know, earn money and turn a profit? Or is superiority is strictly in the amount of money thrown at unbelievably unprofitable companies?

As long as there are a few companies producing billions, the system can sustain hundreds of companies soling millions and still come out ahead.

Re: Y Combinator’s European founder intake continues to grow

#190

Earlier quoted context omitted.

The challenge with any argument about SV vs Europe is that SV is so sui generis that it's actually SV vs more or less everywhere else including the rest of the US. Really, including the rest of California. What's the startup ecosystem look like in Fresno? SV is so atypical that it's almost impossible to draw any kind of conclusions from particular factors and anyway is now probably self sustaining - VCs go there beca…

> and anyway is now probably self sustaining As a German this is an interesting point. While I'm no big fan of the big cities (Berlin, Munich, Hamburg) we see lots of successful* startups happening and gaining track there and in smaller towns. University cities are often doing fine, too and are slowly but surely developing startup structures and everything else. To me this looks more promising than concentrating all…

I've also heard that the German banking system is much more geographically diverse, with many smaller banks giving business loans to businesses in their immediate geographic area. If that's still the case, it would make sense that there would be less concentration of capital and therefore entrepreneurship.
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