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carlosjobim 7 hours ago

There is nothing hindering European startups to raise money from all over Europe. Except that Europeans hate to invest in real businesses and love investing in real estate.

American startups and businesses get investor money from all over the world, including from Europe. Willingness to invest in startups depends on the downstream of willingness to invest in business in general. If venture capital investors know that there's a lot of money willing to invest after the startup phase, then they are willing to take more risks. And so on for every phase of investors, until you reach big institutional investors like retirement funds.

It looks like the proponents here have fallen into the classic European thinking: "Let's talk and make papers to make our wishes become true". Instead of trying to understand reality and why things are the way they are.

They should ask themselves why any European investor would want to invest in a European startup instead of in an American startup. They should ask themselves why European entrepreneurs should create their startup in Europe instead of in America. When they have the answers to those questions they know what solutions to propose.

My experience doing business in and with America has been nothing but fantastic. They have all the infrastructure and all the culture to help entrepreneurs and anybody who wants to do business. They want to do business as well. Need a credit card processor? Need an LLC? Need a bank account? Need a business loan? It's easy, the USA is fucking open for business.

In Europe it is hostility mostly all the way, from banks to regulators to governments, and so on. The easy part is registering a company, which is just as swift in Europe as it is in the USA. But apart from that you won't find any friends in the process. Even if you're European. Even in the country and the city you were born in.

Americans love new things and new ideas and see them as opportunities. Europeans see them as threats. And that is mirrored everywhere you turn. You might agree with the European perspective in a society-wide perspective, but for startup businesses the American mindset fits much better.

vladms 7 hours ago | parent | next [-]

> In Europe it is hostility mostly all the way, from banks to regulators to governments, and so on

I have various experience with opening businesses and my impression is that the quality of service is the same as for personal matters, not worse nor better. My complaint (for both personal and as business) is that you stumble upon low qualified people that just do not care. If you know what to ask and how things work, it's mostly ok. If you need to discover by yourself (and nobody helps you) you will have headaches.

> Americans love new things and new ideas and see them as opportunities. Europeans see them as threats.

That's definitely true, and a big frustration for the entrepreneurial type. But, think like an American - see it as an opportunity! Once European are convinced things are not "a threat/evil" they will work more steady with you, for the longer term. I worked at a number of projects with US that changed direction so often that nothing was ever finished - because they always went for the newest idea. Not ideal either.

pjc50 7 hours ago | parent | prev | next [-]

> They should ask themselves why European entrepreneurs should create their startup in Europe instead of in America.

What if the founders can't get a visa?

The assumption that the world is flat, trade is free, and people can just be anywhere - globalization - may not hold true for much longer.

thinkindie 7 hours ago | parent | prev | next [-]

There might be a cultural component, but as a matter of fact if you want to expand to other countries within Europe you will have to create a local entity or hire through an EOR. EU-inc will solve this.

troupo 7 hours ago | parent | prev [-]

> American startups and businesses get investor money from all over the world, including from Europe.

Ah yes, the "real business" of American startups: losing billions of dollars a year with not even a business plan to turn a profit, in hopes of being acquired by a larger entity.