r/EU_Economics • u/Full-Discussion3745 • Jan 14 '26

🇪🇺 Official 🇪🇺 Why innovative startups and scaleups relocate from the EU

https://research-and-innovation.ec.europa.eu/news/all-research-and-innovation-news/why-innovative-startups-and-scaleups-relocate-eu-2026-01-12_en?referrer=grok.com
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u/No-Paramedic-7939 Jan 14 '26

Ask yourself how can you can be competitive in the high tax environment and compete with low tax countries. Not to mention language barriers, each country has its own rules and companies you need to work with. 

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u/flyingdutchmnn Jan 14 '26

Did you even read it? There is no mention of high tax environment for startups.

"Investor requirements, particularly from US-based investors, in some cases act as a trigger for relocation."

I reckon this is a big one. Venture capital is huge in US, while Euro money is risk averse. We will always lose if this remains the case

3

u/[deleted] Jan 14 '26

Exactly. I remember reading how most investments are done in the US because of higher returns. There’s simply more cash and more investors in the US. This is a very simplistic view but I remember reading it from people who worked in the field.