Entrepreneurs and Investors Unveil “EU Inc.” to Create a Unified Pan-European Startup Ecosystem Under the 28th Regime

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In a bold move set to transform Europe’s innovation landscape, a coalition of leading entrepreneurs and investors has launched EU Inc., a groundbreaking initiative aimed at establishing a single pan-European startup entity. This visionary effort seeks to streamline Europe’s fragmented startup ecosystems under the EU’s 28th regime, which provides a unified legal framework that simplifies cross-border operations, investment, and equity compensation for startups across the continent.

EU Inc. is designed to unlock the full potential of Europe’s tech sector, helping the region become the global hub for the next generation of groundbreaking innovations in AI, robotics, quantum computing, climate tech, and more. The initiative, endorsed by prominent tech leaders from across Europe, marks a significant step toward creating a thriving, competitive environment where European startups can scale rapidly and attract global investment.

The proposal builds on the success of previous efforts such as European Accelerationism, promoting the needs of European founders, and the Not Optional campaign for European stock option reform. With the political will already present, the EU Inc. coalition believes that policymakers can and should execute reforms swiftly.

The EU Inc. proposal aligns with multiple high-level recommendations and political commitments, including:

  • Mario Draghi’s report on the future of European Competitiveness from September 2024, advocating a new EU-wide legal statute for ‘Innovative European Companies’;
  • Enrico Letta’s report on the future of the Single Market from April 2024, calling for a European Code of Business Law under a 28th regime;
  • European Commission President Ursula von der Leyen’s political guidelines for 2024-2029, supporting innovation, competitiveness, and smarter regulation.

The proposal calls for the creation of a standardized corporate structure that would simplify processes, encourage international investment, and allow startups from all corners of Europe to compete on equal footing with their counterparts in the U.S. and Asia. By harmonizing critical aspects of corporate law, EU Inc. promises to make European startups more attractive to investors while enabling them to offer employee stock options more effectively.

Andreas Klinger, investor with Prototype Capital and former CTO of Product Hunt, and Simon Schaefer, Founder and CEO of Factory, spearheaded the initiative. Klinger emphasized the importance of timing, stating: “We have a six-week window before the new EU commissioners define their agenda for the next five years. If EU Inc. becomes a priority now, it has a strong chance of success within the next few years.”

EU Inc. aims to address the barriers that have hindered Europe’s startup sector. The regulatory complexity across member states has often deterred international investors from engaging with European startups due to the administrative and legal hurdles involved.

Klinger highlighted the stark contrast between Europe and the U.S.: “In the U.S., a startup from Chicago can easily attract investors from both coasts. In Europe, investors are hesitant to invest across borders because of tax and legal complications. EU Inc. aims to eliminate these barriers.”

Schaefer added, “No modern corporate law truly embraces the needs of tech startups. With EU Inc., we have the chance to be the first to implement a legal framework that genuinely supports innovation.”

Among the first signatories to the EU Inc. proposal are Ilkka Paananen, CEO and Co-Founder of Supercell, Taavet Hinrikus, Co-Founder of Wise, and Niklas Zennstroem, Founding Partner and CEO at Atomico. Their involvement underscores the wide-ranging support from Europe’s startup community.

The initiative comes at a crucial time, with EU leaders including Mario Draghi and Ursula von der Leyen advocating for reforms to boost innovation and competitiveness. With strong political will behind the movement, EU Inc. is poised to turn Europe into a powerhouse for tech-driven growth, fostering an environment where the next trillion-dollar tech company could be born.

Entrepreneurs, investors, and the wider tech community are invited to join the movement and sign the petition for EU Inc., marking the beginning of a new chapter for Europe’s innovation ecosystem.


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