Earlier quoted context omitted.
it would explain why Europe lags so far behind the US in tech startups The primary reason Europe lags behind is the substantial lack of investors & VC's. The case highlighted by the author is typical of large corporates but if you look at any decent tech company in London for example, this case would sound ridiculous and extreme.
It's not the lack of invetors and VCs in Europe - it is the lack of ability to invest in RISKY companies - the very definition of "startup". European investors are just bankers (with a few exceptions).
Also you might have heard of a little company kicking the shit out of Intel... ARM. Based in Cambridge UK, that is also where most tech investments in Europe are happening (not London or Berlin).
Also, Germany and Switzerland are much more quiet and private about investments. You won't hear about many of them.
These days you can invest in a UK startup, and have the government pick up 100% of the tab if it fails. Not to mention insane tax breaks (100%+) for r&d and for exploiting patents. The UK already has crowd equity.
If you get all your news from YC then you're probably stuck in the silly valley echo chamber.