Comment by Workaccount2
5 days ago
Perhaps the same regulations that US companies keep running afoul of are the regulations that prevent European investors from putting money behind European startup competitors.
The EU has some extremely strong consumer protection laws, which is excellent for consumers, but it comes with downsides too.
> Perhaps the same regulations that US companies keep running afoul of are the regulations that prevent European investors from putting money behind European startup competitors.
Nah, it's all the capital which gets invested into the US caused by the dollar's role in international payments that drives the US exceptionalism is tech.
Like, 65% of world equity value relates to 4% of the world population. That's not sustainable long-term, and if something cannot go on forever, then one day it will stop (and we might be seeing that start to happen now).
Don't get me wrong, the US market has a bunch of advantages (large, one language, standard regulation) but it's mostly all the capital sloshing around that drives the outperformance of the US tech companies.
You simply cannot dismiss the omnipresent differences in American and EU mindset/culture as playing a role in each country's entrepreneurial success and ability to build and scale innovations.
There is a huge culture difference: Having spent time in both countries, an entrepreneurial spirit is valued far more in American culture and is far more present than in the EU.
I don't disagree (apart from the fact that the EU is 27 countries, not one).
Which countries did you spend time in?
I would still maintain that the reason the US is more entreprenuerial right now is because it's easier to get capital (particularly for tech focused businesses). Now, some of that is because of previous tech exits, some of it is culture but to maintain that the differences in capital don't have a large impact is also pretty reductionist.