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TechCrunch
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Founders and VCs back a pan-European C corp, but an ‘EU Inc’ has a rocky road ahead
- Europe may be getting a new corporate status for innovative companies, known as the '28th regime.'
- The EU-wide model is being described as Europe's answer to a Delaware C-Corp, helping to facilitate cross-border investments into European start-ups.
- The Societas Europaea structure aimed at larger firms has failed to gain tractio in Europe.
- The EU Inc petition promoting the 28th regime has already attracted some 11k signatures and has been endorsed by tech entrepreneurs and large investors, including Niklas Zennstrom and Patrick Collison.
- EU Inc has drawn support from the European Commission, but will face careful opposition, particularly over issues surrounding bureaucracy and national regulations.
- Groups like French start-up and venture capital lobby group France Digitale have played a key role in endorsing EU Inc.
- Concerns remain that the project could get bogged down by red tape and nation states, and issues relating to Brexit could also cause complications.
- Despite hurdles, there is a growing consensus that Europe has to take radical action to remain competitive and not fall behind growing global markets.
- The urgency for the EU Inc idea has brought together a network of European start-ups to support one of the many proposed radical changes in political and economic discourse.
- The founders and VCs behind the initiative are hoping that EU Inc will have a knock-on effect on other significant complex issues for start-ups in Europe, such as stock options, exits and financing.
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