European founders and venture capitalists are urging lawmakers to maintain the integrity of the proposed EU Inc corporate statute. An open letter released Thursday warns that weakening key features could render the framework unusable, hindering investment and entrepreneurship across the bloc.
The success of the EU Inc proposal could significantly reduce operational friction for European companies, potentially attracting more venture capital and fostering a new generation of startups within the bloc, thereby impacting the competitiveness of the European tech ecosystem.
European founders and venture capitalists are intensifying their push for a robust EU-wide corporate statute, known as EU Inc, warning that any dilution of the proposal could undermine its effectiveness. In an open letter released on Thursday, prominent figures from Europe's startup ecosystem stressed the importance of preserving the legislation's core features to foster growth and investment.
The EU Inc campaign aims to create a common legal framework allowing companies to incorporate and operate seamlessly across the European Union, addressing fragmentation that currently hinders businesses. While the initiative has garnered support from top EU authorities, concerns are mounting that national lobbying efforts, such as those from Germany's notaries, could lead to a watered-down final text.
With approximately 100 days remaining before the European institutions' winter recess, proponents of EU Inc are calling on policymakers to safeguard the proposal. They emphasize that technical details, such as a single central registry and the taxation of employee stock options only upon disposal, are crucial for making the statute a practical tool for founders rather than one that is overlooked.
Supporters, including Index Ventures partner Martin Mignot, have previously highlighted the importance of these details. The latest letter features endorsements from venture capitalists like Accel's Sonali De Rycker, Sequoia's Michael Moritz, and Atomico founder Niklas Zennström. Additionally, founders behind successful startups such as Alan, ElevenLabs, Lovable, Mistral, and Synthesia have lent their support, signaling the potential for EU Inc to retain talent and investment within Europe.