alt Hacker NewsPeople will blame the EU’s nightmarish fragmentation and regulatory headaches (all true)…but ultimately all factors ladder up to one thing: the availability of risk capital to invest in new ventures.
When Stripe was founded Venture Capital in Europe was even more nonexistent than it is today. Regardless of the regulation, if the EU dumped 2X as much risk capital into payments startups at the same time the U.S. did, Stripe would be a European company.
Talent flows to where the money is. Then once talent starts aggregating in one place it produces network effects (gravity), that gravity pulls in more capital and talent in a virtuous cycle, until fast forward a few decades and suddenly you have almost all the most valuable companies in the world being from Silicon Valley. Hence the present time we live in.
Who’s fault is it Europe is so far behind? Ultimately WW1 and WW2 destroying European wealth, assets, talent and risk tolerance.
If you look at the countries who stayed out of both wars (Sweden, Switzerland)…they are currently the tech hubs of Europe. They both have more unicorns per capita than the US.
Spain also stayed out of both wars but had a domestic Civil War in the 30s, which had the same net effect of destroying their prospects.
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> If you look at the countries who stayed out of both wars (Sweden, Switzerland)…they are currently the tech hubs of Europe. They both have more unicorns per capita than the US.
And in absolute terms, the UK has the #1 number of unicorns in Europe, 4th globally.
> Spain also stayed out of both wars but had a domestic Civil War in the 30s, which had the same net effect of destroying their prospects.
The Spanish Civil War was arguably just a proxy opening of WW2 between the USSR and Germany. Doesn’t change your point, just came to mind while reading your comment.