As the US and China pursue dominance in the global technology race, concerns are mounting among European founders that the region’s entrenched bureaucracy is impeding its capacity for innovation and growth.
The EU is going “overboard on tech regulation,” said Job van der Voort, CEO and founder of Remote, an HR tech company valued at over $3bn. “It’s stifling innovation and it’s a massive risk for Europe.”
Van der Voort told TNW that many business leaders share his view. “Most entrepreneurs agree this is a huge problem,” he said.
Indeed, such concerns are being raised with growing frequency.
The ???? of EU tech
The latest rumblings from the EU tech scene, a story from our wise ol’ founder Boris, and some questionable AI art. It’s free, every week, in your inbox. Sign up now!
At a conference in Paris earlier this month, the likes of Mistral CEO Arthur Mensch and DeepMind founder Demis Hassabis repeatedly called for regulation in Europe that is “flexible enough” to support innovation and competitiveness. A little over a week later, Dutch software unicorn Bird took drastic steps to escape “overregulation,” announcing plans to move most of its operations out of Europe.
“I think more companies will be forced to do the same [as Bird],” said van der Voort. “But the biggest impact will be at the early stage.”
The founder highlighted the ongoing trend of European startups crossing the Atlantic to scale. Research by London-based VC Hoxton Ventures found that nearly all European startups with over $500mn in revenue — including Spotify, Wise, and Adyen — succeeded by winning the US market.
Van der Voort believes burdensome tech regulation is encouraging moves beyond the continent. “It’s becoming unattractive to start and maintain a business here,” he said. “That’s why I tell startups to leave Europe if they want to succeed.”
Van der Voort has followed his own advice. After he and Marcelo Lebre founded Remote in 2019, the partners decided to base the company in San Francisco. “It was simply easier to start it there,” he said.
Remote, which helps businesses hire and manage remote teams, has grown rapidly since then. In 2022, the company raised $300mn in a Series C round that pushed its valuation above $3bn.
“The EU needs to consider its own fate over the next decades,” warned van der Voort. “Regulation standing in the way of innovation — that makes it harder for startups and is incredibly hurtful for the economy.”
Job van der Voort is a former speaker at TNW Conference, which takes place on June 19-20 in Amsterdam. Tickets for the event are now on sale. Use the code TNWXMEDIA2025 at the check-out to get 30% off the price tag.
Read More
Siôn Geschwindt