European Tech Leaders Push for “Tech Renaissance” with Pan-European Entity, EU Inc

Leading figures from Europe’s burgeoning tech scene have joined forces to advocate for a transformative initiative: the creation of **EU Inc**, a single pan-European entity designed to turbocharge innovation and startup growth across the continent. This bold proposal, backed by CEOs from companies like Stripe, Wise, and Pigment, aims to address the fragmentation currently hindering Europe’s ability to compete with tech powerhouses like the U.S. and China. The initiative seeks to tackle critical challenges like regulatory hurdles, limited cross-border collaboration, and a fragmented investment landscape, ultimately aiming to accelerate the growth and international success of European startups.

Key Takeaways: A European Tech Revolution in the Making

• **A Call for Unity:** Prominent European tech leaders are pushing for a single, unified entity, **EU Inc**, to streamline startup development and investment across the EU.
• **Overcoming Fragmentation:** The initiative aims to address Europe’s fragmented startup ecosystem, marked by variations in regulations, limited cross-border collaboration, and nationally focused investments.
• **Boosting Competitiveness:** EU Inc aims to propel European tech to compete globally with the U.S. and China, which currently dominate the tech landscape.
• **Attracting Investment:** The initiative expects to attract significant investment by simplifying processes and creating a more unified and attractive environment for global investors.
• **Leveraging the 28th Regime:** The proposal cleverly suggests utilizing the EU’s **28th regime** framework, offering an alternative legal structure rather than replacing existing national laws, thereby fostering a more agile approach to regulatory compliance.

The EU Inc Proposal: A Pan-European Solution to Fragmentation

The open letter, published on a newly created website for the EU Inc initiative, vividly depicts the challenges facing European startups. **”The multitude of countries and cultures in Europe is its unfair advantage,”** the letter states. **”But because of that, our startup scene is fragmented.”** The initiative highlights the significant burden of navigating diverse national regulations, making scaling a business across borders a complex and costly undertaking. Moreover, the letter points to a crucial issue: European venture capital often remains confined within national borders, unlike the more fluid and expansive nature of US venture capital flow, creating **”stifled momentum, unrealized potential, and an artificial limit on our startups’ chances of success.”**

A Novel Approach: The 28th Regime

Instead of advocating for complex, EU-wide legislative changes, the founders propose a more innovative approach: creating EU Inc under the EU’s **28th regime**. This legal framework allows for the creation of alternative structures *in addition to* existing national rules, providing a flexible and adaptable solution. The European Company Statute serves as a prime example of a successful 28th regime, offering an alternative option for establishing public limited-liability companies across the EU. EU Inc similarly aims to operate within this framework, offering a standardized alternative for startups without disrupting existing national regulations.

EU Inc’s Vision: Standardization, Simplification, and Accelerated Growth

The proposed structure of EU Inc is ambitious: **it aims to standardize investment processes, simplify cross-border operations, and create a unified employee stock options framework.** This strategic three-pronged approach directly addresses the pain points currently hindering European startups. By standardizing investment processes, EU Inc seeks to attract more capital from both domestic and international investors, making the process less cumbersome and more attractive to venture capitalists and other funding sources. Streamlining cross-border operations would ease the administrative burden, allowing startups to reach broader markets more efficiently. Finally, a unified employee stock options framework would enhance the attractiveness of working for European startups, making it more competitive with those in the U.S. and supporting their ability to attract and retain top talent.

High-Profile Support: A Who’s Who of European Tech

The initiative boasts an impressive roster of supporters. **Patrick Collison**, the CEO of payments giant Stripe, lends his considerable influence and expertise to the effort. He is joined by other prominent figures such as **Taavet Hinrikus**, co-founder of Wise and venture capital firm Plural; **Eléonore Crespo**, CEO of French accounting software unicorn Pigment; **Ilkka Paananen**, CEO of Supercell (owned by Tencent); and **Miki Kuusi**, CEO of Wolt (owned by DoorDash). This high-profile backing underscores the urgency and significance of the proposal, lending it considerable credibility within the European tech community and beyond.

The Broader Context: Europe’s Race for Tech Supremacy

The launch of EU Inc comes at a critical juncture for Europe’s technological landscape. Numerous officials have emphasized the need for significant reforms to bolster the bloc’s competitiveness against the U.S. and China. A recent report by former European Central Bank President **Mario Draghi** called for a massive increase in investment, highlighting the stagnant industrial structure and lack of disruptive companies that threaten the EU’s geopolitical relevance. The European Commission chief, **Ursula von der Leyen**, has also made supporting innovation and smarter regulation a key priority.

Closing the Funding Gap

The stark reality is that Europe has lagged behind in producing global tech giants. While the U.S. boasts tech behemoths such as Amazon, Google, Meta, and Apple, and China has its own tech giants like Alibaba and Tencent, Europe’s presence in the global tech arena remains relatively modest. Data from Atomico’s 2023 State of European Tech report underscores this gap. European startups raised **$45 billion** in venture capital funding in 2023, significantly less than the **$120 billion** raised by U.S. startups and the **$48 billion** secured by Chinese startups. Moreover, European tech firms are **40% less likely** to secure ongoing venture funding after five years than their American counterparts.

The Urgency of Action: Escape Velocity for European Startups

Andreas Klinger, a co-initiator of the EU Inc proposals and an investor at Prototype Capital, aptly captures the urgency of the situation: **”In the startup world, momentum is everything. Anything that slows you down doesn’t just slow you down – it kills you by stopping you from reaching escape velocity.”** He stresses the inherent challenges faced by European startups, despite their talent and ambition. EU Inc, he argues, is about removing artificial constraints and enabling startups to truly accelerate. The proposed initiative offers a beacon of hope, a strategic plan to address systemic issues and propel Europe into a more prominent position in the global technology landscape. The success of EU Inc hinges on collaboration and unified vision among European policymakers and its tech leaders to overcome fragmentation. If successful this initiative could set a global example of successful public-private collaboration that leverages technology for economic growth.