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Europe’s Plan to Compete with Silicon Valley

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Re: Europe’s Plan to Compete with Silicon Valley

#31

Post by pjc50 »

guard-of-terra wrote: post #7
solve wrote: post #5

Misleading. This proposal decreases EU competitiveness by INCREASING the VAT taxes on digital goods. Until now, companies often haven't have to charge VAT for customers residing in a different country from the providing company. Now, they'll always have to charge VAT! > A single digital market could bring in €340 billion to European GDP Not trying to help startups, trying to get more money by taxation. Way to continu…

On the other hand, they are creating a largest uniform digital goods landscape in the world with wealthiest customers. It they are successful we are bound to see quite a few new spotifys. UPD: And VAT is smaller than e.g. 30% iTunes cut, which they can now regulate with a wave of hand.

VAT is on top of the iTunes cut, which they aren't going to regulate (and I don't believe they have the power to regulate sales commissions in that way either)

Re: Europe’s Plan to Compete with Silicon Valley

#32

Post by dataker »

Maybe, EU is coming to SV, not the other way around.

Although startups have a great culture, big tech companies are being filled with executives and acquiring any disruptive micro-startup.

Analogously, many employees often feel like 'factory workers'(sorry for overstatement) being pressured by employers to produce X as fast as possible.

Re: Europe’s Plan to Compete with Silicon Valley

#34

Post by fullwedgewhale »

bontoJR wrote: post #21

> Data by the commission shows that 41% of these EU enterprises don’t make use of any digital technology. Technologies for these industries are everywhere, if they don't want them, will a digital European market change this? I don't think so... > The first pillar of the plan: breaking down barriers in cross-border online activity. Differences between contract law, taxes, consumer protection and copyright laws among m…

I have to think one major issue for a German startup (for example) would be that their ideas might not work in France because of French laws which might prohibit some feature of that German service. So, the Market for a French firm is (at least initially) France. That's significantly smaller than the US. Coupled with the fact if feels like most US managers look at a laptop as a basic tool while many European managers seem to regard it as a tool for their subordinates.

Re: Europe’s Plan to Compete with Silicon Valley

#35

Post by Jacqued »

scrollaway wrote: post #6
guard-of-terra wrote: post #3

I hope they get something out of it, lots of tech jobs in a nice and accessible area is a good thing for the whole web ecosystem and me personally.

Question: What places in Europe would someone recommend an ambitious EU techie with no ties to move to (and possibly settle)? I figure the country needs to have fairly good internet and a decent political climate at the very least.

In the next few years I think Paris might become quite an interesting place. (disclaimer: I live there)

It's already booming compared to a few years ago, it is seeing some significant successful startups (Criteo, Blaclacar...), and the ecosystem is clearly growing at an accelerated pace, with new companies, new spaces, new schools, new events appearing all over the place.

In 2016-2017 a few really large incubators are to open. Like the one championed by Xavier Niel which will host 1000 startups in a gigantic railway warehouse converted to startup offices (I bet that neighborhood is going to feel that change!), or another one opened by the City that will host 300 startups.

All in all I expect a frantic activity in the next few years. Now with so many startups (and hopefully a few great ones in the lot!) the scramble for financing is bound to be pretty harsh.

Re: Europe’s Plan to Compete with Silicon Valley

#36

Post by madamepsychosis »

iagooar wrote: post #19
nakedrobot2 wrote: post #2

"Europe" competing with a small neighborhood on the west coast where the vast majority of the world's tech capital lives? Sorry I don't see it. Combined with the gloomy pessimism and fear of failure even in Europe's brightest areas (London and Berlin) and the absolute, spineless pathetic nature of European VC's (no not bitter at all ;) Europe will NEVER compete on any meaningful level with Silicon Valley. edit: spell…

Could you elaborate on the nature of European VC's (as compared to American ones)? I'm genuinely curious.

Here's a recent anecdote: A company in London had developed a seriously impressive, breakthrough technology. When they went to meet European VCs, they wanted a business plan, revenue graphs, etc., nothing about how the technology worked. They were mostly ex-McKinsey and ex-banking and probably would not have understood the mechanics anyway. They lowballed/ passed on this company, because they were raising > £10 million, which by EU standards is a massive amount, and the financials of this < 5 y/o company were too shaky. Then the founders went out to SF for a month, and pretty soon were practically drowning in termsheets.

Re: Europe’s Plan to Compete with Silicon Valley

#37

Post by pea »

nakedrobot2 wrote: post #2

"Europe" competing with a small neighborhood on the west coast where the vast majority of the world's tech capital lives? Sorry I don't see it. Combined with the gloomy pessimism and fear of failure even in Europe's brightest areas (London and Berlin) and the absolute, spineless pathetic nature of European VC's (no not bitter at all ;) Europe will NEVER compete on any meaningful level with Silicon Valley. edit: spell…

Never is a strong word. I agree with you on the VC front; but talent-front, I am so blown away w/ what London has to offer. Plus excellent schemes like Entrepreneur First are really changing stuff.

But the attitudes of investors is lacking massively: Aaron Harris tweeted that "When reading YC apps, the most important question isn't "Why could this fail?" but "How could this be incredible?"" -- this sentiment needs to seep into the minds here, who seem more focused on risk aversion than optimising for upside.

I hope this is the 'easy' bit to change (I'm not sure). My gut says it's an old guard that will eventually be replaced.

Re: Europe’s Plan to Compete with Silicon Valley

#38

Post by dageshi »

guard-of-terra wrote: post #12
solve wrote: post #9

Earlier quoted context omitted.

Just adding more taxes does nothing to create a more uniform landscape. For the Europeans, consider that Amazon & other US web companies got to charge 0% sales tax for almost their entire customer-base in the US, until they were far beyond the startup stage. For many of their US customers, they still get to charge 0%. That's what promoting small businesses looks like. VAT adds tons of problems, especially for service…

They're not "just adding taxes"; they enforce existing ones and also create a more uniform landscape. It's not so important to me whether they worship small or big companies, I prefer medium sized ones anyway :)

How do you get to become a medium and then large company? You are a small one first. American companies can grow in a place with very few restrictions and obstructions on them while they're young and then expand into europe when they are sufficiently big. All these changes are doing is making it easier for them to do this, they'll have an inherent advantage because they don't have to deal with crap like VAT.

Re: Europe’s Plan to Compete with Silicon Valley

#39

Post by _delirium »

kriro wrote: post #18
dagw wrote: post #8

Earlier quoted context omitted.

Berlin seems to be the most 'happening' place at the moment

I've always wondered why the Ruhr Valley isn't marketed/established as a techhub of sorts. Well connected infrastructure means it's essentially one big city and there are a few universities with decent tech departments. Berlin makes sense but come on...Valley in the title already ;P

As far as reputation among foreigners, some of it might be that Berlin is probably the easiest place to live in Germany without speaking German (or without speaking good German). Though, from what I gather, still not that easy, e.g. tech companies will hire you without German skills, and there is a considerable multilingual social/cultural scene, but the "official" side of daily life (civil service, doctors, utilities, etc.) will be challenging without German.
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