Why Is Europe Failing to Create More $1B Startups? • Hacker News Board

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

#291

Post by SilasX » Wed, Sep 16, 2015, 1:42 AM UTC

boreas wrote: post #287

rospaya wrote: post #269

Earlier quoted context omitted.

> Something like Uber could never have come out of Europe. https://en.wikipedia.org/wiki/BlaBlaCar

BlaBlaCar is actually owned by SNCF, the French state-owned railway company. So Blablacar is actually part of the government monopoly on all long-distance travel (even highways cost money to use). I don't think it's the best standard-bearer for the European startup scene.

Wait, what? The Wikipedia page says it's private. Even the French version makes no reference to SNCF. The closest I could find was SNCF being one of many investor-owners. [1]

Even if it were so owned, its entire history looks like a startup (lots of financing rounds, building out the product, about having to raise capital), so even if there was a buyout, it overcame whatever regulatory hurdles should have prevented this kind of thing in France.

Where are you getting this information?

[1] http://bfmbusiness.bfmtv.com/entreprise/la-sncf-investit-28-...

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

#292

Post by Silhouette » Wed, Sep 16, 2015, 1:46 AM UTC

t1lthesky wrote: post #256

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…

I dont know about this. I've used uber in multiple cities in the US and taken cabs in multiple cities across the EU, and the uber experience beats cabs hands down. Everything is more convenient - some cities you can only get cabs in certain areas, or its really hard to find a cab, or some cab drivers are very unfriendly, and if you dont know the city the ability to specify a destination on the map is great. Not to me…

I've used uber in multiple cities in the US and taken cabs in multiple cities across the EU, and the uber experience beats cabs hands down. Everything is more convenient

You didn't mention which cities you've experienced in the EU, and in any case I've no reason to doubt your experience, but all I can say is that some places with traditional/regulated taxis don't seem to have the same problems. I'm in the UK and I can't remember the last time I had trouble getting a taxi at quite short notice even at a busy time of day, booking in advance is pretty much 100% reliable around here these days, and I've never heard of someone finding they can't get a cab in their area (unless you mean somewhere rural where there isn't a local taxi firm, I suppose).

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

#293

Post by nandemo » Wed, Sep 16, 2015, 2:35 AM UTC

hkarthik wrote: post #229

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.

Indeed.com?

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

#294

Post by eli_gottlieb » Wed, Sep 16, 2015, 2:35 AM UTC

exelius wrote: post #204

chimeracoder wrote: post #174

Earlier quoted context omitted.

> They're only able to address the EU market because they have a large, profitable base in the US. Uber is only able to address any market because they have a ton of outside venture funding. Don't get me wrong - I agree that the EU is overly protective and that this harms their startup economy, but Uber is not a good example of that point.

That's true of any startup. But I guarantee you in one of those venture funding pitches someone asked them "So most cities have taxi regulations that make what you're trying to do illegal. How are you dealing with that?" Their answer was basically "Fuck 'em, we'll flood the market with cheap product, make consumers love it and the regulators will cave." That would not have worked in Europe if they hadn't already done…

If Uber is so great, when are they gonna make a profit?

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

#295

Post by crdb » Wed, Sep 16, 2015, 2:39 AM UTC

seibelj wrote: post #274

exelius wrote: post #178

Earlier quoted context omitted.

Boston is a second-tier startup city along with Pittsburgh, Chicago, Seattle, etc. It's too expensive, it's hard to recruit good talent (too cold, too far from everywhere, etc), and there's not a ton of VC. You can do it, but you'll have an easier time of it in NYC or Texas. Texas has a warm climate, cheap housing and low taxes, which draws a lot of startups there. Raising money can be a problem, but you also don't n…

It's cool that you like Texas and all but the stats speak for themselves. It's SV way ahead of Boston which is a little ahead of NYC. And Boston has tons of enterprise VC which is unique. I have no problem hiring talent in Boston, and the numbers I snag engineers for are high, but nothing like the "500k salary and 2 million in stock" articles I hear about happening in SV. Also, the whole argument that it's harder to…

> nothing like the "500k salary and 2 million in stock" articles I hear about happening in SV

Amusingly, the only American software engineer I know who is certifiably taking more than 500k USD a year in base (i.e. cash, pre-bonus) salary lives and works in Boston.

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

#296

Post by brc » Wed, Sep 16, 2015, 3:01 AM UTC

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…

+1 for mentioning the cold war spending which is what put the 'silicon' in silicon valley.

In many peoples minds, Silicon Valley sprung fully formed to it's current state sometime in the 70s, when that is far from the truth. And I don't mean that just in the tech sense, but also the VC & funding model sense.

Arthur Rock wasn't just some rich guy that dropped from the heavens when he invested in Apple - that money came from much, much earlier and was already following a specific way of investing.

Worthwhile reading :http://steveblank.com/category/secret-history-of-silicon-val...

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

#297

Post by brc » Wed, Sep 16, 2015, 3:11 AM UTC

andreamazz wrote: post #56

Unicorns? Ha! It's hard to survive, let alone be successful. No investors, convoluted laws, high taxes and complete lack of startup mentality. I'm a cofounder of an italian startup, and the road is on an unbearably steep slope. The bureaucracy is insane, the cost of running a small business is daunting. Other companies refuse to work with you because in their eyes you're a scrub (I heard so many times bullshit like "…

People sometimes fails to realise that sometimes little things stand in the way of big things.

A small startup has no momentum and little power.

The smallest obstacle can block progress.

Having to file endless forms and being unable to take on staff due to restrictive hiring regulations can stop a small company dead, unless they cheat at the regulations.

Most people don't understand that, and just say 'why can't they just submit the forms?'.

Sure, some companies have enough momentum and funding they roll right over those things. Those were always going to succeed.

What people don't see is all the promising ideas that stop dead at little blockages, and either die or go elsewhere. Maybe 1/10th of startups are destined for success, no matter what. Maybe 8/10ths are destined for failure, no matter what. The remaining 1/10th is a fragile new thing, and needs help to get rolling. Killing that 1/10th through bad regulation is enough.

Many people talk about the SV advantage being the networks of people and the can-do attitude towards building things. Just that little bit more fertile ground for startups has a big flow-on effect.

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

#298

Post by ithkuil » Wed, Sep 16, 2015, 3:16 AM UTC

mraison wrote: post #52

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…

Once again, state in the US != country in the EU, and Europe != China. Those are not "local" languages (or "minority" languages), they are "national" languages, no matter how ridiculously small you may think those nations are. There are "regional" (or "local") languages too, but they are rarely used in a professional environment, and thus more akin to dialects in China. This has strong cultural implications.

"a shprakh iz a dialekt mit an armey un flot"

(A language is a dialect with an army and a navy)

https://en.wikipedia.org/wiki/A_language_is_a_dialect_with_a...

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

#299

Post by dschiptsov » Wed, Sep 16, 2015, 4:10 AM UTC

The same reason as why almost all the activity is on the Everest and there are orders of magnitude less expeditions on K2 and almost 0 on Kanchendzunga.

Because it requires Silicon Valley (the Everest region) and US-style financial institutions (free money) and bankruptcy protection laws.

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

#300

Post by refurb » Wed, Sep 16, 2015, 4:26 AM UTC

adventured wrote: post #250

exelius wrote: post #178

Earlier quoted context omitted.

Boston is a second-tier startup city along with Pittsburgh, Chicago, Seattle, etc. It's too expensive, it's hard to recruit good talent (too cold, too far from everywhere, etc), and there's not a ton of VC. You can do it, but you'll have an easier time of it in NYC or Texas. Texas has a warm climate, cheap housing and low taxes, which draws a lot of startups there. Raising money can be a problem, but you also don't n…

Boston is a first tier startup city, clearly. It ranked above New York for total VC dollars raised in 2014, to go with its 371 deals, versus New York's 395. It's basically third in deal activity nationally. It's four times larger than Seattle, and perhaps ten times larger than Pittsburgh when you account for deals + money. http://nvca.org/pressreleases/u-s-venture-capital-investment...

Your source includes all VC funding, not just tech start-ups. Boston is #1 in biotech funding (SF is almost tied), so the numbers are skewed if you're just referring to tech funding.