At Kfund, supporting entrepreneurs who strive to create projects with global impact is central to our DNA. Over the past eight years, we’ve seen firsthand that our entrepreneurs and their teams are every bit as innovative and capable as their counterparts across the Atlantic. However, it’s also clear that the competitive advantages afforded to companies founded in the United States continue to grow. Furthermore, competition is intensifying, as Chinese companies continue to strengthen their global presence.
Historically, the UK and European software sectors have lagged behind the U.S. due to market fragmentation, slower growth rates, and limited access to capital. Fragmented European markets have restricted software companies from scaling efficiently, as they must navigate varying regulatory landscapes and cultural differences across countries. Additionally, while the UK and Europe are home to prestigious educational institutions and a wealth of skilled talent, a significant portion of this talent migrates to the U.S., drawn by greater career opportunities and funding availability. To counter these challenges, the European Union must take bold steps to strengthen the competitiveness of our startups, with reducing market fragmentation as a crucial focus.
The EU Inc. initiative represents a powerful response to many of our concerns in that field. Spearheaded by industry leaders Andreas Klinger, Philipp Herkelmann, Simon Schaefer, and Vojtech Horna, EU Inc. aims to create a standardized pan-European corporate structure for startups. This “EU Inc” framework aligns perfectly with what we at Kfund and others in the European startup ecosystem have long advocated for.
So, what exactly does EU Inc. mean for startups?
This initiative will establish a robust institutional foundation for Europe’s future competitiveness, delivering exponential returns. The EU Inc. structure promises to:
We’re seeing encouraging steps in the right direction. Recently, European Commission President Ursula von der Leyen announced her intention to propose a “28th regime” for startups. Her remarks underscored the priority of creating a unified market that empowers startups to scale effectively across Europe.
Similarly, during hearings for the Commissioners-designate, both Michael McGrath, the new Commissioner for Democracy, Justice, and the Rule of Law, and Ekaterina Zaharieva, the new Commissioner for Startups, Research, and Innovation, voiced strong support for dedicating all necessary resources to bring EU Inc. to life as swiftly as possible.
At Kfund, we are committed to supporting the growth of a competitive European technology sector. We believe Southern Europe holds everything it needs to contribute to this ambition. Now, as members of the Trusted Investors Network, a coalition created by the European Innovation Council to co-invest and grow Europe’s most disruptive deep tech start-ups, we want to take a step forward.
The time is now. We encourage everyone in our network to support this initiative, each from their unique vantage point. A more coexistent Europe will help us all get closer to our goals. It’s through such measures that European entrepreneurs can secure the position we must not give up: the forefront of technological and business innovation.
At Kfund, supporting entrepreneurs who strive to create projects with global impact is central to our DNA. Over the past eight years, we’ve seen firsthand that our entrepreneurs and their teams are every bit as innovative and capable as their counterparts across the Atlantic. However, it’s also clear that the competitive advantages afforded to companies founded in the United States continue to grow. Furthermore, competition is intensifying, as Chinese companies continue to strengthen their global presence.
Historically, the UK and European software sectors have lagged behind the U.S. due to market fragmentation, slower growth rates, and limited access to capital. Fragmented European markets have restricted software companies from scaling efficiently, as they must navigate varying regulatory landscapes and cultural differences across countries. Additionally, while the UK and Europe are home to prestigious educational institutions and a wealth of skilled talent, a significant portion of this talent migrates to the U.S., drawn by greater career opportunities and funding availability. To counter these challenges, the European Union must take bold steps to strengthen the competitiveness of our startups, with reducing market fragmentation as a crucial focus.
The EU Inc. initiative represents a powerful response to many of our concerns in that field. Spearheaded by industry leaders Andreas Klinger, Philipp Herkelmann, Simon Schaefer, and Vojtech Horna, EU Inc. aims to create a standardized pan-European corporate structure for startups. This “EU Inc” framework aligns perfectly with what we at Kfund and others in the European startup ecosystem have long advocated for.
So, what exactly does EU Inc. mean for startups?
This initiative will establish a robust institutional foundation for Europe’s future competitiveness, delivering exponential returns. The EU Inc. structure promises to:
We’re seeing encouraging steps in the right direction. Recently, European Commission President Ursula von der Leyen announced her intention to propose a “28th regime” for startups. Her remarks underscored the priority of creating a unified market that empowers startups to scale effectively across Europe.
Similarly, during hearings for the Commissioners-designate, both Michael McGrath, the new Commissioner for Democracy, Justice, and the Rule of Law, and Ekaterina Zaharieva, the new Commissioner for Startups, Research, and Innovation, voiced strong support for dedicating all necessary resources to bring EU Inc. to life as swiftly as possible.
At Kfund, we are committed to supporting the growth of a competitive European technology sector. We believe Southern Europe holds everything it needs to contribute to this ambition. Now, as members of the Trusted Investors Network, a coalition created by the European Innovation Council to co-invest and grow Europe’s most disruptive deep tech start-ups, we want to take a step forward.
The time is now. We encourage everyone in our network to support this initiative, each from their unique vantage point. A more coexistent Europe will help us all get closer to our goals. It’s through such measures that European entrepreneurs can secure the position we must not give up: the forefront of technological and business innovation.
