Comment by jacquesm
2 years ago
There is a big reason why the USA outside of Silicon Valley and Seattle has so few successful big tech companies: because success begets success and capital breeds more capital. If it was just European regulation you'd expect SV equivalents everywhere except for Europe. That didn't happen.
And the last thing we need is more competition in ad tech.
Given the size and abuses by the existing ad tech giants, why do you say they last thing we need is more competition. wouldn't more competition mean they have less money and get away with less and have to behave better?
No, we need them to go away. Like the dinosaurs or the Dodo. Because competition between ad tech giants means the public is collateral damage in the ensuing war. That's because the advertiser money flows to the ad tech company that is most efficient at extracting dollars from their audience. Even a .1% increase is enough to swing the battle, and that arms race has been running since 1994 or so, the results are there for all to see.
As much as we would like them to magically disappear and get uninvented, like NFTs, there doesn't seem to be any mechanism by which that realistically happens. So then, like harm reduction, isn't more competition better than less? It means less money goes to the existing giants, which may not totally starve them, but will put them on a diet.
Silicon Valley equivalents are brimming up in other parts of the world, Taiwan is very much known for its hardware technology. There are documentaries about Shenzhen becoming a tech hub too. Even here in Bangalore (India), there are many tech companies doing massive amount of good work.
But they're also right in the sense that regulation acts like a barrier in many parts of the world. I had often wondered why did Linus Torvalds and other Engineers travelled to Silicon Valley to found Linux, etc? Did they not find opportunity in Finland or any other nearby European countries?
That's because once you have a runaway success the US will tax you lower and your quality of life will be higher than what you can achieve in Europe. The USA is a great country if you're on to a winner. So the vacuum cleaner in SV tends to suck the air out of a lot of EU successful start-ups and engineering efforts simply because that's where the money is. Typical start-up valuations in the USA dwarf those in Europe, access to a single unified and mostly mono-lingual market are far more of a factor than any EU regulations, that's just a dumb meme that gets tossed around by the clueless. Yes, taxes are higher. But so is average quality of life, as opposed to average GDP, which relies on outliers.
Despite being less wealthy and diverse in both language and culture, China and India produce more tech unicorns than the EU. Several smaller countries, like Singapore and Israel also do far better than the EU on a per-capita basis.
I'd attribute most of the gap to regulatory and cultural difference.
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> Yes, taxes are higher. But so is average quality of life, as opposed to average GDP
What does the second part of the sentence have anything to do with creating tech companies?
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Seattle, Boston, New York, and Austin have joined the room.
I think I covered Seattle.
And so have Eindhoven (ASML), London (Revolut, Monzo, Wise and Deliveroo), Paris (DailyMotion, AppGratis), Berlin (Soundcloud, Mister Spex, Zalando, Helpling, Delivery Hero, Home24 and HelloFresh) and Amsterdam (Sonos (ok, technically Hilversum), Booking.com, TomTom) etc, etc. So what?
Tech companies exist the world over. The specific kind of tech company that requires a mountain of free cash and that can monopolize a whole segment is a SV anomaly and Microsoft is the exception simply because of when it started.
Yeah, these kneejerk Europe comments are just bad. Amsterdam alone has some huge tech companies (Booking, Adyen).
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