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33 sats \ 4 replies \ @Riberet 8h \ on: Davos hits ‘peak pessimism’ on Europe as US exuberance rises econ
So many years of doing things wrong have their consequences, innovation in Europe is 0, they focus more on regulating everything than on supporting innovation and production, the result is obvious.
I think it's a bit more nuanced.
I recently talked to 2 friends in Europe. One has joined a startup in Spain, focusing on AI stuff. The other one has started his own startup in Belgium, and they are thriving. It's a highly specialized material science company.
They both agree that it's nearly impossible to make a FAANG-style company in Europe these days. Indeed, due to regulations. However, both of them think that's a good thing. And I can follow them in that, as I don't think companies that are the size of Facebook, Google, Amazon, Apple, and Netflix (?) are a net positive to society. Not because the products they offer are useless (they aren't, most people use them daily), but because they are too big to fail, are walled gardens that kill any competition, and have too much influence in politics.
They told me both their companies benefit a lot from government programs to start a company without too much risk for the founders (one can argue that's a good thing because Silicon Valley hustle culture leads to many a burnout, one can also argue that's a bad thing as it puts less pressure to succeed), while at the same time, being forced to become profitable as, believe it or not, government funding is not infinite.
Not saying everything is rosy (it isn't, it's even pretty bad these days, as illustrated by the article I shared), but innovation and support for production are available. One just has to know the ropes on how to get it.
They are of course biased as they are in successful startups.
We should have an ~AMA with the guys from ACINQ, and ask them how they see the current environment in France to develop their LN company. Or maybe someone from Ledger?~~
Just putting this as a counterweight to the mostly negative sentiment one gets when reading Korean or US media reporting on Europe.
EDIT: your name sounds French... you might have boot-on-the-grounds insights to share. I'll be curious to hear them.
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Of course you can find narrow examples where you can milk the EU/local subsidies and it works out. If you know how to play the system and are willing to struggle through the endless paperwork and other nonsense.
But keep in mind that employment laws fuck you over, taxation fucks you over and regulation fucks you over. Employment laws are complicated and archaic, completely nonsensical for dynamic startups or small companies. Every jurisdiction has its own tricks so hiring people from 3 different countries is an endless nightmare of paperwork and legal advise.
I've had companies on 3 different continents and while they all suck EU is by far the most restrictive and makes the least sense.
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Thank you for your reflections, it is true that innovation is still possible, and there are people who achieve it, but others give up and go where they have more benefits in terms of regulation and taxation, in the end, a lot of talent is leaving Europe, and I think that is partly a big problem.
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For sure. I know of a few people who left Europe for the US looking for greener pastures. Mostly because of the freedom that comes from having very little regulations and not much taxation.
One of them did so, had some great experience there learning how the startup world works, and came back a few years back to Europe where he started a company that is sending satellites into space. They are also doing pretty well.
Finally, just remembered another guy who's a friend of some of my friends who started an IT company. I checked, and his net worth is now 2.8 billion USD according to Forbes.
Just triggers me when I see someone as useless as Lagarde pretending to represent the actual productive people I've met in Europe.
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