Comment by fakedang
14 hours ago
Or maybe they leave voluntarily, because the EU is simply not a place to do business? Because the EU has been regulatory-captured by aging tech entities such as Siemens, IBM and SAP?
Mistral, Zendesk, Basecamp, etc. left Europe for the US early on. If we take into account European founders who started their companies in the US right away, the list is even longer.
The EU and Europe are different. 27/50ish (depending on who you ask) countries in Europe are EU member states and they collectively have about 3/5 of the European population.
My own country - the UK - is (in)famously not a part of the EU and I don't think anyone would seriously claim that we have no technological innovation or successful tech businesses here in Cambridge. The city is practically overflowing with tech startups either spun out directly from university research or keen to employ people from the local tech community.
But what tends to happen is that when one of those companies reaches a certain stage the founders will cash out. Not everyone needs to be the next Bezos or Musk. Not everyone needs to see their company of 20 or 50 or 100 people grow to 5000 with international divisions set up before an eventual IPO. Not everyone wants to go through multiple rounds of VC funding and then have to run their company under the influence of the VC's people on the board. There are a lot of founders who would be very happy to take an eight figure payday after 10 or 20 years of working on the business and then have no need to work any longer if they don't want to and the freedom to do almost anything they want for the rest of their lives. I've personally known a few of them. Some did effectively retire. Others later started something new. But one thing I don't recall a single one of them ever expressing is regret over the timing of their exit.
If anything I'd say what is missing here is a culture where people feel the need to carry on past that stage in their startup's growth. And so instead of that successful business continuing - perhaps after some other form of exit for the founders - as a local company that might eventually become big enough to buy up other successful startups we instead see them get taken over by companies ultimately run from the USA because they're the ones with enough resources for an acquisition at that scale. Of course there have been a few that did become much bigger before an eventual exit - ARM is probably the most obvious one locally and for all the tragedies in the Autonomy story it was another - but they are the exception and not the rule here.
To come back to the car business we were originally discussing today - I doubt very much that we will build the next Tesla or BYD or even Polestar here in Cambridge - but I could easily imagine a startup here developing the next generation of car control system and then selling the IP to one of those companies as the exit strategy.