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As a Brit, when I was raising the seed round for my startup, UK and European VCs would consistently try to haggle you down on price while the American VC's were exclusively focussed on trying to figure out whether this could be a billion dollar business or not (in the end we raised a $5m seed led by Spark, and have done extremely well and raised more since).

The UK lost Deep Mind - which could have been OpenAI!! -- to Google. I think part of the issue is cultural - the level of ambition in the UK is just small compared to the US. Individual founders like Demis or Tom Blomfield may have it but recruiting enough talent with the ambition levels of early Palantir or OpenAI employees is so hard because there are so few. Instead, a lot of extremely smart people in the UK would rather get the 'safe' job at Google, or McKinsey than the 'this will never work but can you imagine how cool it would be if it did' job at a startup.

There are probably political reasons as well. Unfortunately the UK has not been well governed for 20 years or so, and hence economic outcomes as a whole have been abysmal.

> As a Brit, when I was raising the seed round for my startup, UK and European VCs would consistently try to haggle you down on price while the American VC's were exclusively focussed on trying to figure out whether this could be a billion dollar business or not (

Yes we have many comments on HN talking about how harmful the US VCs attitude is because they force good businesses into choosing between being unicorns and not getting funding.

I do not know the truth of it, but clearly its not obvious.

> Unfortunately the UK has not been well governed for 20 years or so, and hence economic outcomes as a whole have been abysmal.

I commented on this earlier. The UK's economic outcomes have been similar to comparable European economies (like Germany) and better than some (like France). Whatever the problem is, its not unique to the UK: https://news.ycombinator.com/item?id=42766107

I do not think the UK is well run, but I think the west in general is badly run. Poorly thought out regulation, short termism in both politics and business, a focus on metrics subject to Goodhart's and Campbell's laws, and a poor understanding of the rest of the work (leading to bad foreign policy).

> Yes we have many comments on HN talking about how harmful the US VCs attitude is because they force good businesses into choosing between being unicorns and not getting funding.

HN has a very wide range of economic opinions, and some people are extremely uninformed about what it takes to do hard things that can't be grown organically, and what it takes to maintain a business running when it's done the hard thing in the face of competition.

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> Yes we have many comments on HN talking about how harmful the US VCs attitude is because they force good businesses into choosing between being unicorns and not getting funding.

Most of those are people complaining about a business having to make changes because it took $50+m in funding and now needs to justify it. The business was only "good" because it got $50m and didn't need to do things like charge enough money. If it hadn't gotten that $50m then those people wouldn't consider it such a good business or even know about it.

It's because post GFC the USA stimulated and the EU went all in on austerity.

It is fairly clear what was the best option.

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For the last 20 or 25 years the UK has been coasting on the North Sea oil&gas money, I'd say that worked up until the early 2010s, and then on the almost complete financialization of its economy and on selling out whatever pieces of the economy could still be sold out (that includes part of their beloved NHS).

But that can only work for so long and is beneficial in the medium to long-term for a very limited number of people (basically the owners of said financial capital), at some point you have to produce some real wealth, wealth produced from real stuff via resources of the Earth + human ingenuity and, yes, + human work.

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> The UK's economic outcomes have been similar to comparable European economies (like Germany) and better than some (like France)

Who says those countries were well governed though? IMO they are all run by idealogical morons

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Completely agree, the problem in Europe is not regulations or anything like that - it is a mindset issue. It is one of things that europeans can learn from Americans.

My hypothesis is that this is a combination of old money and class consciousness. In other words, the rich are risk averse because all they care is preserving their wealth and the working class don’t believe and can’t even imagine that more is possible.

Regulations often stem from a particular mindset. However, they also serve to perpetuate that mindset.

As a member of the working class, I find there’s little incentive to build something new or innovate because the effort required to navigate through all the burdensome regulations is overwhelming. On top of that, any additional income I might generate from bringing my ideas or initiatives to market would be taxed at more than 50%. For many people like me, the effort simply isn’t worth it. Instead, we focus our energy on other pursuits, such as family, sports, or friendships.

This shift in focus isn’t inherently bad—a life balanced between family, friends, work, and leisure is often a recipe for happiness. However, societal progress relies heavily on the efforts of a small minority of individuals who are bold (or perhaps crazy) enough to pursue their ideas. When 90% of those individuals are discouraged from taking entrepreneurial risks, society’s capacity for innovation is severely stifled.

In short, it’s clear that excessive regulations and high taxes are holding Europe back from achieving its full potential for growth and innovation.

Which regulations exactly you find burdensome or overwhelming and stopping you from attempting the become wealthy, change your life and the world maybe?

Why would you skip having 1 billion Euros just because you could have had 2 Billion but the government took the rest? Up until 1960's rich Americans payed %91 tax, and yet they kept their entrepreneurial spirit - why you can't do the same at the stated %50?

When Apple was founded, the tax rates were %70.

We have global commerce; you are not only working on the creation part of something new, but also competing with similarly skilled people working with different more advantageous start conditions.

Nobody is talking about the difference between 1 and 2 billion, they are talking about the difference between 50 and 100 thousand, while competing.

> Why would you skip having 1 billion Euros just because you could have had 2 Billion but the government took the rest?

No one's making that choice. Most businesses fail, even in somewhere entrepreneur-friendly like America. Why not just work for someone else, given the rewards are capped even at relatively low level of success? Why take the risk, when taxation has failed to price risk into reward?

The highest marginal tax brackets tend to kick in very, very early in Europe. That makes a huge difference.
Does it? How many people skipped getting rich because they could have been richer? Any factual examples?

BTW, rich don't actually pay much taxes. The luxury life they live is usually not taxed, most of the things they do is considered business expense.

When a worker flies to Ibiza they first pay social security and income taxes, then they pay consumption taxes like VAT.

When a businessman flies to Ibiza they deduct whatever they can as an expense so they don't pay income tax and VAT. For whatever they can't claim that it is a business expense they will pay with a cheap loan against their assets and avoid paying income taxes. Since they still have those assents, they pay just the interest later when the assents increase in value. If their business fails those assets fail, the bank takes the assets and no taxation happens.

What the OP is trying to say is that to grow from 50k euros earned per year to 1 million euros earned per year is very, very cumbersome and, yes, mentally challenging and very stressful, and that a lot of people actively choose to stay/remain at the 50k euros per year level and they'll not take the risks of trying to get to more than 1 million per year.

Once you're at more than 1 million per year there are other challenges and you can probably afford to hire someone to take part of that burden off your shoulders, but until you get to that point you're on your own and it's very damn stressful (and by stressful I mean that that includes the possible inflated but all to real fear of getting to prison because of that tax-thingie that you didn't fill the 100% correct way or because some work your company did broke some municipal regulations or whatever and now you're on the hook for damages and, yes, personal liability).

Actually your VAT-skimming thing at the end is a very good example of that mentality, i.e. the innovators here having to have the Tax man front and center in their minds, before innovation and trying to build something useful off the ground, because if you don't know how to play the Tax man (at the limit of legality, as your example is) then you're toast. That "playing the Tax-man" thing consumes a lot of people's energy in the early stages, energy that would have been way better spent trying to actually make something new and innovative.

[the 50k and 1 million figures are just used as examples, maybe it's not 50k but 70k or 80k and maybe it's not 1 million but 5 to 10 million, but the idea stays the same]

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For a married couple in Germany, they reach 40% in effective tax rate somewhere above 600,000€ in combined annual income.

My take would be that once people have 100k€ in net annual income per person, they just do other things and work less because it brings them more happiness than the additional money would.

Canadian here.

It's not so much any single regulation, as it is there's so many little ones that seem reasonable on the face of it. But it's also that what makes the ruling Canadian class so is the authority to bypass those regulations.

I can give one personal example; I was able to secure some public funding application for a non profit I'm affiliated with. But the only reason I was able to do that was because my parents were university classmates of the elected official that was able to pressure the staff that was handling the paperwork to prioritize and approve our application ahead of probably the hundreds in front of us. The official's going to get a nice thank you dinner out of it, but I also had to offer some information that the official could financially benefit from for him to even consider it, and a promise of some future favors.

For better or worst that's how a lot of Canadian system works. Grant applications, personal tax work, personal and business banking, etc. Anyone can get through it eventually for anything. But if you want it done quickly and in a way probably won't get tied up in the system itself, you better know someone that owes you a favor.

This is very interesting anecdote because it resonates with something that a friend of mine said when I pressured him to explain which regulations exactly are causing him problems in EU.

As it turns out, he also complained about excessive documentation he needs to get public funds for his project.

So both of you are actually complaining about accessing public funds and not actually doing private investment or starting a private company with private funds.

this is not what most of the Americans do and this is not what they mean by startups or business. Mostly.

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Nominal tax rates were 70 or 90 per cent, but no one really paid them. The tax code was full of loopholes for that purpose.

You can't rely on such paper figures to determine real tax burden in the past.

Which is still the case. No one is skipping getting rich because of taxes, they end up paying very little anyway.
What makes you think anything has changed here? Certainly in the UK, there are plenty of "loopholes". Outside of PAYE, there are plenty of ways to legally lower your tax burden, and plenty of wealthy business owners and shareholders make full use of those loopholes.
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You've fallen into the classic trap of thinking about the very very very tiny of people who are billionaires. Very few people are billionaires. Very few startup founders will ever be even if they succeed.

Life changing money is going from $50k/year to $1m/year. Not from $1b to $2b.

The vast majority of tax burden and complexity hits the middle class.

> When Apple was founded, the tax rates were %70.

It was 35% on capital gains.

In Europe the capital gain tax ranges from %37 in Norway, %34 in France, %26 in Germany and Italy, %10 in Bulgaria and %0 with conditions in many other places. Tax heavens are a European invention anyway.

And no, millionaire or billionaire doesn't matter much. Europe lacks Billionaires not Millionaires. Europe is full of small businesses and by small I mean millions in profits and revenues.

In Europe %99 of the companies are small or medium sized enterprises, which is not different than the USA. In USA however, large companies have slightly higher number of employees which is an indicative of concentration of power and that's how you get your "USA has 5 unicorns in top 10 but EU has only 1" lists.

Contrary to the narrative, Europe has much more small and medium sized enterprises per capita: https://www.nationmaster.com/country-info/stats/Economy/Micr...

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The 50% tax being a roadblock is exactly what the lack of ambition is about. There's an implicit assumption you're only ever achieve just over the tax limit rather than hundreds of thousands or milllions over with share options etc.
> As a member of the working class, I find there’s little incentive to build something new or innovate because the effort required to navigate through all the burdensome regulations is overwhelming. On top of that, any additional income I might generate from bringing my ideas or initiatives to market would be taxed at more than 50%. For many people like me, the effort simply isn’t worth it.

I find it ironic you mention "classes" (regarding "as a member of the working class"). There are problems everywhere (either as an employee or as an entrepreneur). Feeling overwhelmed is just a feeling, does not say anything about how much you can do or if you get a reasonable workload.

I think what is holding Europe back is the people not trying and understanding various things without having lots of fears (of being overwhelmed, of large tax, of what people will say, etc.).

A balance must be stricken also between what you can do (leisure, family) and how many resource you produce/consume. The purpose should be for more of leisure/family but that is ONLY IF we (I am also European) produce/consume enough. Too many smart and capable people want to "just be an employee", which results in gaps in other places (entrepreneurs, politicians, etc.).

I think this is a combination of a lack of supportive environment and a risk averse mindset. Employers will likely scoff at a CV with one or more entrepreneurial stints. The way I see it is this: if the prohibition era was implemented in the UK, people would still acquire alcohol against any and all barriers. The same drive doesn't exist for entrepreneurial goals. Regulations make things difficult but the critical problem is that the entrepreneurial mindset is not there
EU drone regulations ban autonomous drones from being flown. This made me stop work on them, this is not a mindset problem. It's actually a corruption problem as Google wanted to sell their software to coordinate drone flights and the EU people were "persuaded" to enact regulations to make this happen.
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In Germany, you can typically finance the first 1-3 years of your start-up through government gifts like "EXIST". That's why you don't need early seed investors.
EXIST is very narrowly tailored to technology start-ups founded by graduates based on their research.

Out of curiosity I was spot-checking the the founders of the latest YC 24 Winter batch at https://www.ycombinator.com/companies?batch=W24 , and the requirements would exclude at least 90% of them from EXIST if they lived in Germany.

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Your sentence is not true as you present it. There are _a lot_ of constraints. Time wise, topic wise, biased wise. No typicality start-up will ever get the EXIST "gift".
EXIST in particular targets universities, though, so not every founder is eligible.
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Do you know any equivalent for the Netherlands by any chance? Everything I see is tiny amounts.
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"The grant covers personal living, material, and coaching expenses over 12 months, allowing founders to focus on developing their founding idea. While graduates receive personal funding of 2.500€, students can receive 1.000€ a month, additionally up to 30.000€ material and 5.000€ coaching budget that can be used to develop the founding project further."

So, 30k EUR (gross) with a maximum funding period of one year? Laughable. Also probably a little bit tragicomic.

Early seed rounds are usually measured in couple of USD millions. I wonder how these brilliant minds in the EU think they will attract the industry talent to leave their ~5x salary (outside FAANG) for such a pocket money.

> don’t believe and can’t even imagine that more is possible.

And/or don't think that more is better/desirable. I wouldn't consider myself working class, but I was definitely raised with the idea that making obscene amounts of money is actually pretty selfish/immoral and not something one ought to strive for. That doesn't preclude going into business. But it is pretty antithetical to the VC funding model and the creation of billion dollar businesses.

In general, it seems that the culture in America is that wealth is virtuous and confers status, whereas in Europe that at least isn't so universal and some circles it is even seen as shameful (consider that variants on socialism are still mainstream political ideologies in Europe).

But we're not talking about obscene amounts of money. Just making enough to have some savings so you can do things like a career break or retire early is discouraged (and mostly impossible). Europe wants you to work, and keep working, forever.
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Exactly. Half the population are saboteurs and vote to suppress success
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> it seems that the culture in America is that wealth is virtuous

I don't think I've ever seen this claimed anywhere except as a criticism.

It’s not something that Americans in general explicitly believe, but you can see it in their attitudes and behavior towards the rich and successful. For example, HN (being somewhat weighted towards American cultural norms) collectively believes that people who have made lots of money are especially wise and hard working, and therefore have special insights to offer to the rest of us. True or not, this is a culturally specific belief.
I think this is just a bias. I've not seen much that makes me think Americans think rich people are more virtuous, at all. Certainly not enough to create a stereotype out of, even if I thought stereotypes were a good idea.
Yeah, I was raised with that idea. I did make some nice businesses, but I don't care for growing because of growing. If I catch a few 100k a year for everyone in the company (yep, it is the reason I like tiny companies: we can just decide to all make the same), I don't really care about the rest. Doing that for 10 years (even shorter but he) is enough for anyone to live out their life in comfort out of the (etfs etc) interest here. I keep on doing making new things as I like it, but need no more money, so that helps.
> it seems that the culture in America is that wealth is virtuous and confers status, whereas in Europe that at least isn't so universal and some circles it is even seen as shameful

Isn't this due to different types of Christian traditions? AFAIK In some, it is considered that the wealth is given by the God to the virtuous ones and they are merely guardians of it and responsible to use use the wealth in a virtuous ways and therefore getting rich is encouraged and the rich are treated with respect?

There's something similar among some Muslim sects too, in Muslim majority countries it is not uncommon to believe that the God chose someone to be rich and there's more to that person that the eye can see therefore must be respected. Some religious communities even get so obscenely rich and you can see poor servants having a religious experience when their leader arrives with an a luxury car.

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People need examples of success in their network. Most people have frankly never met or heard of anyone who founded a successful startup- and therefore would never think of taking on such a risk. I agree that in some places there is a sense of malaise, but if we are to believe founders are a 1-2% outlier of the population, I don’t see why America’s 1-2% should be so much more ambitious than the UKs. I think it’s more a cycle induced by lack of funding.
Well it’s not necessarily a good thing. In Europe we are traditionalists and we retain a lot of spirit (Geist) by not striving for pure progress
Yes, there are advantages of a stable and well functioning systems that don't have disruptors and we indeed benefit of it as having good lives but unfortunately this can't last as those who go hard on progress and tear down everything and rebuilding again will eventually get ahead on everything and won't let us just be as we now see with US billionaires having impact over Europe.

Americans feel more pain but are also rewarded, Europe has no option but to become progressive - otherwise tere will be no more Europe and the Americans and Chinese will make us adopt their ways.

Oh, BTW, America is also struggling. The latest political developments are an attempt to change course - they are trying to become a bit more like Europe with the race and class based politics holding roots. They say they are anti-regulation anti-discrimination(of whites specifically) but the core MAGA movement is all about putting barriers and preserving old ways for the benefit of a subset of people. Americans are too in soul searching. Their MAGA literally means fixing what is no longer great but their demands are actually quite conservative and they already begin falling off with their accelerations partners.

> unfortunately this can't last as those who go hard on progress and tear down everything and rebuilding again

A notion of "bare progress" is the elephant in the room. Progress is a vector. It has magnitude and direction. People talk of moving "forward or back", but science also has a steering wheel.

> and the Americans and Chinese will make us adopt their ways.

This very notion of "progress" as a totalitarian force is also dangerous. The boot is on the other foot from 80 years ago. When Europe was starting a 1000 year technological master-race, more measured minds had to extinguish that fire. I see many similarities today - people seeing "progress" simply as dominance.

I liked the brain-dump in TFA, but I think it's over-complex and too tied to a contemporary interpretation of capital investment.

We've been spooging away our talent for generations here. Look at how we treated Turing. We mismanage or sell-off everything cool we invent.

What Britain still suffers from is class disloyalty. We still have a strong but invisible class system which is now international financiers. Those sorts "float above" the ordinary economy, they are disconnected from UK interests and don't give a toss about engineering, science, knowledge, education...

> When Europe was starting a 1000 year technological master-race, more measured minds had to extinguish that fire

A lot of the measured minds were saying eugenics was a good idea. It took the horror of seeing experiments and concentration camps to make it so deeply unfashionable the idea couldn't even survive in academia.

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>Yes, there are advantages of a stable and well functioning systems

Current EU is definitely not a stable and well functioning system. Look at economic conditions, political outcomes, illegal immigration, wealth inequality, societal and political trust, homelessness rates, birth rates, free speech suppression, welfare austerity, etc Everything has been going downhill since the 2008 crash. It's a powder keg.

>they are trying to become a bit more like Europe with the race and class based politics holding roots.

What are you on about? Europe doesn't have much race based politics, that's a thing America keeps pushing.

That's quite the conservative talk-radio shopping list.

Illegal immigration is a metric of the EUs economic success and social stability compared with North Africa, Eastern European Accession States, and the war-torn middle east. If America shared land borders and direct migration routes with Islamic caliphates and the like, they'd know all about it.

Economic Conditions and Political Outcomes are pretty sane and tolerable for all but a select group of (surprise surprise) US backed agitators like Hungary. You have to remember that the EU is run as a society rather than an economy, and must be judged on this ethos. People are very fond of using the comparable GDPs of Bavaria and Mississippi in this conversation - forgetting to mention the life expectancy is 10 years less and infant mortality 400% higher on the US side.

Societal and Political trust is still quite high - despite much fearmongering, the far-right are not gaining the political capital necessary to instigate significant change outside of Hungary.

Homelessness rates are a factor of illegal migration - and are laughably low compared to the US on a per capita basis; ditto whatever warped contention you have regarding 'welfare austerity'. We just call it social security. During Covid and in the period afterwards it was hugely ramped up across Europe - and not in a giveaway budget with a check personally signed by an Oligarch.

Re 'free speech suppression' I'm really not sure what you're aiming at. The current cultural friction regarding things like gender-identification and pronoun usage are uniquely american exports. On basically all other counts other than venue-shopping defamation cases, it's a moot point for any normal person.

Finally re birth rates - they tend to go down in wealthy and advanced societies outside of select religious groupings (looking at you Salt Lake City) so I'm not sure what your point is there.

It isn't a "conservative talk-radio shopping list". It is reality in quite a few areas in Europe and the UK.

> Economic Conditions and Political Outcomes are pretty sane and tolerable for all but a select group of (surprise surprise) US backed agitators like Hungary. You have to remember that the EU is run as a society rather than an economy, and must be judged on this ethos. People are very fond of using the comparable GDPs of Bavaria and Mississippi in this conversation - forgetting to mention the life expectancy is 10 years less and infant mortality 400% higher on the US side.

This isn't true. I know many people that have moved from Spain to Hungary. Most of these people where politically fairly normal e.g. either centre-left right or centre-left. I speak to people from all over Europe regularly and many of them do not feel the way that you are describing.

> Societal and Political trust is still quite high - despite much fearmongering, the far-right are not gaining the political capital necessary to instigate significant change outside of Hungary.

That isn't true. I know many areas of Europe where the electorate keep on voting for further right parties. The same is happening in the UK. Labour only won because the Conservatives lost and the Reform party did extremely well for what is a relatively new party. I know the same is happening in Belgium (I speak regularly with Belgian nationals). Areas of Spain that are most affected by immigration have voted for further right parties. So I know this isn't true.

> Re 'free speech suppression' I'm really not sure what you're aiming at.

Just look up the hate speech laws enacted throughout Europe and in the UK and some of the cases that have been prosecuted. We do not have a right to the free speech in the UK and the majority of Europe doesn't either.

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Yeah right, Reform AFD Rassemblement national Fratelli d'Italia and other risings stars have nothing to do with race and even if they do it's Americans behind it.

Everyone knows that Europeans are much more racist than Americans, it's just that we are much less explicit about it and its issues are different than the issues in the USA.

You might want to look more at why people are against the waves of illegal immigration and less on the color of their skin.
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What is this spirit we retain that US looses ?
Leisure, that is, truly retaining time to encourage and develop the spirit that is not just work

> There is an Indian savagery, a savagery peculiar to the Indian blood, in the manner in which the Americans strive after gold: and the breathless hurry of their work - the characteristic vice of the New World - already begins to infect old Europe, and makes it savage also, spreading over it a strange loss of spirit (Geistlosigkeit). One is now ashamed of repose: even long reflection almost causes remorse of conscience. Thinking is done with a stop-watch, as dining is done with the eyes fixed on the financial newspaper; we live like men who are continually "afraid of letting opportunities slip." "Better do anything whatever, than nothing" - this principle also is a noose with which all culture and all higher taste may be strangled. And just as all form obviously disappears in this hurry of workers, so the sense for form itself, the ear and the eye for the melody of movement, also disappear.

Nietzsche, The Gay Science, §329

Quality of life, if you define an actual proper life as something happening outside of work hours and sleep.

We don't worry whether my insurance will cover the next health issue that will happen to me, be it broken leg or lifelong costly treatment. I don't have to desperately try to save maybe 1.5 million $ to put my kids through decent university, if they desire to do so. I am not brutally tossed on the sidewalk when I am fired, both employer and state gives a LOT of support to not fall off the societal cliff and end up as typical US homeless person. We have way more resting time to recharge via holidays (this fellow from 1.1. is running on 90% corporate work contract and thus sporting 50 vacations days per year - now thats QOL improvement, I've already planned 6 week+ vacations for this year). We have on average simply healthier lifestyles and it shows literally massively.

I could go on for a long time. But you can ignore that - compare usage of mental health medication, from what I've seen its much more massive in US, manifesting the additional stress that US population is cca exposed to.

Its a balance - you add more money, you remove more 'humanity', and the additional stress is there and very real. Everybody has different ideal spot, and this also changes a lot during life. Isn't it better to have 2 systems next to each other, and everybody can pick how they want to live your life? Focus purely on money is stupid, their added value in life quickly diminishes once a person is not poor, then other aspects of life become much more important. The complete opposite is same, 0 progress. Something in between, as always, is the best road for most.

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Should individuals routinely risk their own livelihood to benefit a select few capitalist? Does this improve the life of the average American? Seeing how they vote it seems generally it does not?
Havent FAANG companies improved the lives of the average American? They definitely did, and all these companies were created by ambitious individuals with a bold vision and prospect of making lots of money!

By taking big risks, one might ascend to this capitalist class if they succeed.

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>Completely agree, the problem in Europe is not regulations or anything like that - it is a mindset issue.

You can change mindsets with regulations that reward taking risks in new businesses/innovations, and punish rent seeking and sitting on inherited real estate for example.

But as long as EUrope is focused on maintaining the status quo of boomers and gentrified dynasties of billionaires that you probably played against in Assassins' Creed, nothing will change.

Let's make simple calculations. In California, near the start of the 20th century there were more than 34 million native Americans living in what was their land. Now there are in California 300-700.000 native Americans.

They were exterminated and replaced by a very small European population. Like sterilising a Petri dish and letting bacteria grow, the opportunities that population experienced were the biggest any population in the world ever had. Just look at a graph of the population growth of US OR California in the last century and compare it to others.

Now there is in California a population of near 40 million people.

That is not a "mindset", this is real growth that they could experience and the rest of the world could not.

These numbers are at least two orders of magnitude higher than typical estimates. What are you talking about? It's even higher than the typical all time max which is on the order of 10 million.
Do you have a source for 34 million Native Americans?
Isn't it also an income issue?

I'm from EU and would be totally open to move to UK if there was an opportunity to make more there while working on something cool. But there simply isn't?

Then there are US startups where I could likely make 2 or 3x what I make in EU or UK.

So why would talent every consider moving to the UK to build a startup in 2025 anyway?

> So why would talent every consider moving to the UK to build a startup in 2025 anyway?

A lot of people choose to start businesses near their friends or families.

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Also even the safe job wage in the UK is perhaps only 2/3 of in Germany for example
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Something not talked about - you probably won't be able to lease suitable property if you are doing anything other than apps.

Doing soldering of prototypes? Good luck finding a landlord that would let you do it. The moment they hear "fumes" is a nope, fire hazard, safety risk and won't let you...

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The safe job earns much much more unless you are the founder. Equity pay for start-ups in the UK for devs is very poor, or non-existent, and the base salary also very poor (and not even guaranteed to be paid if they go under). You can instead work for a company like nvidia, google or meta and get a huge base, and nice equity on top.

If UK startups paid equity to their devs, I would work a lot harder when I've worked at them, but startups require working hard and long hours and if I've got no skin in the game, what incetive do I have to make sure the company is successful.

I've been shocked in my career in the UK by just how much founders will rip people off on equity

In basically every UK startup I've worked at they've done 1 or all of the below:

1. Offered options in numbers with no valuation/percentage of ownership. "We offer you 40000 stock options!". When asked to clarify numbers, they delay and never tell you. Inevitably they have a value of a few pence each

2. Withdraw options unilaterally when you leave the company with no option to exercise

3. Never get round to filling in the paperwork so you never actually receive them

I was _shocked_ when i worked for my first US startup and they just...gave me the options. And I could exercise them whenever I wanted. And they expired 10 years after I left the company

Same. I grew up in Canada and my country didn't fund my dreams. The US did. It is a shame and the amount of loss that Canada has every single year because the dumb VCs who exist in Canada cannot look at that big picture.

For example, right now there is not a single VC in Canada who does large pre seed / seed investments based on an idea and the founding team.

In the US you can get a 1 million cheque within a week.

That is the real reason Canada is failing on a macro scale.

@dang hopefully I have kept this well balanced.

> Instead, a lot of extremely smart people in the UK would rather get the 'safe' job at Google, or McKinsey than the 'this will never work but can you imagine how cool it would be if it did' job at a startup.

This isn't just an EU thing, for what it's worth. The US is the outlier.

False. Even good jobs with American companies and what not are subject to ridiculous tax problems in the UK. You give you employees equity but then they have to raise vast sums of capital just to hold on to it to afford their taxes when there is virtually no real liquidity pre IPO.

It's anti success. And there is garbage everywhere, people keep voting for antisocial housing and bad cultures. It's a failing state.

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Even internally in the USA, you will see the full spectrum of EU-like VCs to Sand Hill-like VCs.
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Not just in startups. Feels like Arm lost almost their whole software division over a few years. This was an extremely stable high-profit-margin business, and it was obvious that it was uncompetitive on the labour market. But something in the culture stopped management from increasing salaries, so everyone buggered off to foreign companies.

I hear they fixed it eventually but seems like an unnecessary loss.

My view is that the US startup culture exists because of wealth inequality at the $1-$20m net worth level. Wealth inequality is socially incentivized at that level because of the lack of a decent social safety net. If you don't save money then at 50 you may end up homeless on the street due to bad luck. But if you don't get bad luck then you end up at 50 with a large amount of money that you don't have much to do with. So you start investing some in riskier things because who cares.

US founders not from wealthy backgrounds can often get $500k from friends and family. I doubt those in the UK can do so.

There's massive massive social costs due to this in the US so be careful what you wish for.

European countries do not want start-ups to exist. The barriers e.g. Germany puts up make it extremely difficult for any start up to exist.

Not only is the bureaucracy difficult, the labor laws make it very difficult to hire and compensate talent.

Germany wants innovation to be done by large corporations, not by start ups.

> The UK lost Deep Mind - which could have been OpenAI!! -- to Google.

Deepmind is still in the UK. And more, including foreign, bidders driving up prices for acquisitions and investments, will lead to more people making the jump.

> Deepmind is still in the UK

they dont mean location, they mean ownership of the equity.

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I lived in Ireland for 10 years. It's not the same as the UK but there _is_ cultural overlap. Every time you shared a new idea with _anyone_, even things as simple as "I want to buy a site and build a house on it", the first thing you hear is how that's a bad idea, you will fail, it will never work, and you need to leave it to "professionals".

Not to mention the whole idea that trying to be successful is "notions" and should be sneered at.

Edit: To compare -

Me: "I want to build a house"

Irish friends: "That's a bad idea, you'll never make it work, you'll go bankrupt and it will kill you..."

California/Oregon friends: "Fuck yeah I'll bring a nailgun"

(UK resident, born and bread) Yes this drives me absolutely mad. I'm a poor risk taker and can come up with all those reasons something's a bad idea, but when I've made up my mind to take the risk I want supportive people around not people who would rather you never tried anything outside their "comfort zone".

And the problem runs in families. This is not therapy but every time I talked to my parents about an idea it would be dammed with faint praise or I'd be told I'm wasting my time. It's taken 20 years to work out that the more they dissed an idea is the better it actually was.

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I don't know what the regulations are in the UK, but in many European countries, building a house isn't just about knowing how to build a house, it's also about knowing all the DIN requirements. These are necessary for insurance to pay out if something happens to your house. Let's take a simple example: You're wiring your house. Because of a mistake, the house burns down.

Insurance: “Okay sir, who did the electrical wiring? you: “Me”. Insurance: “Are you a professional? you: “No" Insurance: “Have you had your work certified by a third party?" you: “Do my buddies count?” insurance: "Have a good day sir"

There may never be a problem and you may have figured out everything that's required to get your butt covered (good for you in this case), but the fact is that a lot of people don't know about these things, do their own thing and get royally screwed if there's a problem and, God forbid, someone gets hurt.

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>"That's a bad idea, you'll never make it work, you'll go bankrupt and it will kill you..."

There is an element of truth to that, self build projects seem to go about was well as the typical software project.

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Going through our pre-seed round atm and it is incredibly frustrating. I haven't raised in the US so it may be similar there, but the amount of time wasted for a relatively small amount of money is painful.

I'm also not sure what the government can do. SEIS/EIS is a great scheme, but the SEIS limit of £250k feels almost too small to do anything meaningful, and EIS funds are generally later stage or re-investment from SEIS.

Been there before, and wrote about the experience - https://blog.jacobstechtavern.com/p/yes-actually-means-no-th...

US vs UK investors are night and day. UK investors only want to see profitability to protect their cautious capital

Set UK/EU tech salaries at maybe 30%-50% of US, and factor in higher taxes. Then integrate over 40 years, resulting in a number from which investments can be drawn. Add to the corresponding US number all the profitable exits from previous ventures. There's just so much more US investment capital available.

It can be argued that a responsibility falls on EU equity companies, pension funds, and so on, but they do not make seed investments.

> Unfortunately the UK has not been...

20 years, or 112 years?

Consider just how far the UK's place in the world fell between 1911 (George V ascended to the throne of the global superpower; his Royal Navy was launching 2 to 4 new capital ships per year) and 1948 (3 years after "winning" WWII - and basics such as food, clothing, and gasoline were still strictly rationed).

Very true, although I suppose a significant fraction of the decline at that time might be a result of the end of the Empire, which given that there are simply no such successful Empires anywhere in the world anymore was almost certainly inevitable.

By comparison, the performance of the UK in the last 20 years vs the US or the Nordics is a singular tragedy.

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Yes, "winning" as in not being completely destroyed, occupied, and maybe even enslaved. Check out what Poland looked like in 1940 when it lost, or what Germany looked like in 1945, or, well, 1949.

USSR was also terribly battered by WWII, and its leadership was not highly competent either; I'd say both parameters were much worse than UK's. But it managed to remain a large empire with a high economic potential, and UK could not.

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Sugar was rationed in England until 1953, and meat until 1954. Pretty rugged times.
Exactly this. Great Britain colonized huge parts of the globe and had an empire. They were kings of trade and the world. Now they are just a surveillance nanny state and hollow shell of their former self.
I regularly see opinion pieces in the British Press advising young Brits to get out. In 2022 one writer wrote 'Britain is fed up, bitter, and practically broke – and it’s all going to get worse' and indeed it still is and getting worse. One basic problem: an unsustainable welfare and health system and overwrought bureaucracy. Today I learn that one major bank is considering leaving the UK in view of excessive 'red tape'.
The UK has no shortage of good banks. Santander can fuck off for being worse than their competition.
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Interestingly people, especially poor people, were better nourished during the WW 2 rationing than before the war. Also e.g. universal healthcare was establised post-war.

Is number of war ships, or billionaires, a good measure for a country?

https://blog.nationalarchives.gov.uk/food-thought-rationing-...

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UK also had a lot of colonies that contributed to their growth.
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They spent the wealth of empire fighting a war and achieved what exactly? They would have been better off losing. Crazy when you think about it.
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Circa 80% of world trade is done in USD, and the US literally creates it out of thin air, and it will all bleed into the economy somehow, someway.

Without sovereign protection you just can not compete with that, ever. It's really that simple.

Simply look at China they may export loads of goods but it's predominantly priced in USD, and what do they do with all that excise USD, the only thing they can do, buy US debt. It's truly perverse.

Or look at every UK company that was bought up with those very same magic dollars.

I agree. But I wonder what’s the underlying cause?

Europe wasn’t like this for centuries. What is the cause of this mindset?

In the UK’s case, feudalism is alive and well. The entire tax system is designed so parasites descended from thugs like the Duke of Westminster or Charles of Battenberg-Saxe-Coburg und Gotha never have to pay property taxes on their extensive land holdings.
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That's because risk-aversion and laziness are the smart things to do. Yes, it would be cool to come up with the next Facebook, but most financial advisors will tell you that the actually best thing you can do is some form of "SP500 and hold 20 years" because from the perspective of an individual, the safe option provides the best expected outcome.

Similarly, why work yourself to the bone for a miniscule chance of success, if you can... just chill instead? I used to be a highly-motivated go-getter, but then I realized, this shit ain't bringing happiness, and I turned into a work-avoider who spends time in the office mostly talking to coworkers and playing games in the toilet. My overall life satisfaction skyrocketed.

Yes, the society at large does need people to do the needful, but this ain't gonna be me.

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>There are probably political reasons as well.

There are definitely political - and ultimately, military-industrial - reasons for this. The UK is deeply, deeply embedded in the Anglo-centric 5-eyes criminal superstructure, and plays a huge part in the subversion of human rights at immense scale around the world, that this criminal entity commits every second of the day.

The spook factor bleeds into every technological advancement which occurs in the UK, from GCHQ outwards, like a kraken with deep, deep tentacles.

I've worked with multiple UK-based startups which, as soon as they start to gain traction in international waters/markets, immediately becomes the target for GCHQ embedding/plants. This kills the startup.

Until the British people start prosecuting their war criminals and seeks justice for the immense human rights abuses that occur, every millisecond of every day, as a result of their out of control military-industrial oppression apparatus, there is simply no hope for UK technological industry.

The world sees this, even if the people of the UK do not - and routes around it, accordingly.

Nobody really wants to work with UK-based technology groups, knowing that they are liable for immediate corruption the moment their technology becomes relevant to, say, the people of Brazil, or Africa, or China.

> immediately becomes the target for GCHQ embedding/plants.

I'd be interested to hear more about this.

Why not hire US consultants to get from starting to mid-sized?

I’m curious, if you think the issue is cultural.

Yep. Bring Musk aboard. /s
I was also trying to raise recently. It's interesting to me that the UK has an absolutely incredibly generous startup investment scheme (SEIS)[0], and still hasn't managed to make this work. SEIS is ludicrously generous, and should make getting funding a breeze in the UK, and yet ... somehow it isn't.

0: If a few hurdles are jumped through, then an investor who gives you £250k can get £125k relief on their income tax (not what they'd have paid on £125k, literally the whole £125k), and then claim a further 50% back of the remainder from the government if you go bust.

> The UK lost Deep Mind - which could have been OpenAI!! -- to Google.

You're focusing on one success story out of thousands.

90%, or more, of US startups only exist to be sold to the highest bidder or to coast indefinitely long in infinite investor money, and never turn a profit.

There's still expectation in Europe at large that your company should have an actual business plan and a path to profitability.

+ DeepMind and its founders are the examples of founders who beat the game
I don't think thats's true in the UK as much. Loads of startups here follow the US model.
Brit / American checking in and agreeing. My first startup was a B2B SaaS and hiring in the UK was fantastic - the arbitrage was just silly. Experienced software developers (10+ years) @ GBP 70k / year - and that was close to non-finance full-market pay. The same people were averaging $250k in NYC / SF.

And yet, the UK hires were often better off after all expenses than the US hires.

Largely due to housing being slightly cheaper (other posters have pointed out, London is on par with SF / NY - the big difference being London expands, NYC and SF are both "islands" - yes SF is a peninsula, but commuting up 280 or 101 is not a pleasant experienced).

Also, even offering private healthcare (BUPA) - the UK hires were cheaper. I'm in my late 30s and reasonably healthy - my all-in, gold-plated UK policy was GBP 2k / year - I was at $2,000 / month in the US.

*However* - salaries in the UK are unsustainably low.

Three reasons: [1] BOMAD - The Bank of Mom and Dad (parents paying / lending the deposit for a house so the mortgage is at a low rate) is effectively exhausted. This means that current entrants into the housing market are either renting (which is nearly as expensive as NYC, especially after the inflationary / interest rate jump), or saving to "buy" a house (I enclose in quotes because at a 95% mortgage you don't own much of your house). [2] Professional salaries outside of finance are way too low. My fiancee works in a highly skilled, professional field and her salary in 2024 was, in nominal terms the same as my starting salary in NYC 17 years ago working for a large investment bank IN THE BACK OFFICE - where salaries were decidedly blue-collar. My unproven hypothesis is that the UK professional world is still largely geared towards those with alternative assets, private incomes (especially high-prestige non-professional jobs, especially around politics). This makes it impossible to compete with US venture backed startups, even post-ZIRP, because the offer is always going to be better. And yet that private-income driven base has largely been eroded through capital gains, inheritance tax and general downward social mobility (or, perhaps, less doom-and-gloom - averaging towards the center. The difference in wealth and income between the upper-middle class and the lower-middle class has narrowed significantly). [3] There has been over the last 5-7 years significant negative messaging and tax policy against economic success. A confiscatory top-tax band, an erosion of a "job perks" friendly tax regime and a political climate that is very anti-success, even prior to the labour govt (largely started at the same time, though perhaps not by, Theresa May's 2015 speech and focus on "Just about managing").

VC in the UK is hard, largely because the majority (though by no means all) VCs are focused on aping mid-market pension managers. Their ambition is limited to businesses that already work (and yet anything transformative by definition does not work yet) - and are interested mostly in post-revenue companies with linear or lightly superlinear growth.

This, IMNSHO, is largely caused by the fact that, given state expenditure and the corp and personal tax burden, there simply isn't enough capital for US style VC - the portfolio approach requires capital to absorb failures. Most VCs here cannot afford failure.

The closest we get is the EIS / SEIS tax policy, which allows the offsetting of losses in failed businesses (by the equivalent of Accredited Investors) - as well as a friendly Cap Gains treatment of successes. But these are largely made as common stock investments by individuals - and limited to a very small scale.

Which brings me to my final point - the SAFE note is not only not ubiquitous here, it's rare. Even pre-seed investments are either common stock or (more rarely) convertible notes. This requires a level of diligence (even on small tickets) that make capital formation incredibly burdensome.

There's absolutely a path to resolving this - but the UK first has to make a political and cultural decision to embrace startup-led GDP growth, which is has not yet made.

I agree and it's a real shame, we used to spearhead some of the most initiative companies in technology (Acorn, Arm, Sinclair, Sage, Deepmind). Now it's just a shadow, while places like Silicon Valley or Stockholm have jetted ahead the UK just sort of stagnated - it's kind of embarrassing.
Quite frankly, it's cultural and the thing I hear a lot is simply: fuck that for a job!

I could quite happily get on fine at one of those big American style startups but I don't get excited about hype, I don't have the work culture it demands and I don't have a price on my soul. I'd rather earn a lot less, have extreme stability, have better family time and balance. On top of that there's something tasteless and unethical about a lot of the big startups. Do they really bring good things to society? Do I really want to be part of that?

If I can walk away with half the money, live a modest life and stand with my principles intact, I will take that over twice the money.

I don't think this is political at all. It's not a race either and we have no innate responsibility to build things like this.

The part about that plan that worries me is the ageism in software. I'm mid-forties and it's something I think about a lot for when I have to get a new job.

Anyone young should go make as much money as possible, as early as possible, so they can have the same outlook you do in later life.

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