Dutch tech unicorn CEO advocates for startups to depart Europe
Job van der Voort, the CEO and founder of Remote, a successful HR tech company valued at over $3bn, is expressing concerns about the European Union's tech regulation. In a forthcoming speech at our website Conference in June, van der Voort will discuss his views on the impact of EU regulations on innovation and the economy.
Van der Voort's company, based in San Francisco, has grown rapidly since its founding in 2019, raising $300mn in a Series C round in 2022. He advises startups to consider leaving Europe if they want to succeed, citing overregulation as a significant factor.
His warnings come amid increasing concerns about the EU's tech regulation. Many business leaders share van der Voort's view, and they fear that burdensome regulations may be stifling innovation and posing a significant risk for Europe.
The biggest impact of companies moving out of Europe due to overregulation will be on early-stage startups. Research by London-based VC Hoxton Ventures found that nearly all European startups with over $500mn in revenue succeeded by winning the US market.
The EU's tech regulation has a mixed impact on innovation and growth among European founders. While recent EU initiatives aim to promote startups and scale-ups, some startups face challenges due to fragmented regulatory environments and strict rules that can hamper agility and increase operational costs.
The proposed EU-wide legal status for startups has stalled amid political and industry pushback, and companies fear they still have to navigate 27 different national regimes rather than one unified framework. Heavy regulations, like the Digital Markets Act and the AI Act, impose compliance costs estimated to reach billions annually, which may strain smaller EU startups.
At a conference in Paris earlier this month, Mistral CEO Arthur Mensch and DeepMind founder Demis Hassabis called for flexible tech regulation in Europe to support innovation and competitiveness. The EU needs to consider its own fate over the next decades, van der Voort warns, as the US and China compete in the global technology race.
If you're interested in hearing more from Job van der Voort, join us at our website Conference in June. Use the offer code for a 30% discount on tickets.
[1] European Commission. (2021). European Innovation Council. Retrieved from https://ec.europa.eu/info/business-economy-euro/growth-rules-justice-and-fair-competition/sectors-and-markets/innovation-research-and-development/european-innovation-council_en
[2] European Commission. (2021). Single Market for Startups. Retrieved from https://ec.europa.eu/info/business-economy-euro/single-market-platform/single-market-for-startups_en
[3] European Commission. (2020). Digital Services Act. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12528-Digital-Services-Act
[4] European Commission. (2021). Artificial Intelligence Act. Retrieved from https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12603-Artificial-Intelligence-Act
[5] Hoxton Ventures. (2021). The European Unicorn Report. Retrieved from https://hoxtonvc.com/reports/european-unicorn-report-2021/
- Job van der Voort, a leader in the business and technology sector, advises startups to consider leaving Europe due to concerns about overregulation, which he believes poses a significant risk for European innovation and the economy.
- In his forthcoming speech at the conference, van der Voort will discuss how the European Union's tech regulations may be stifling innovation and growth among startups, potentially leading to a exodus of companies, particularly in the finance and technology sectors.
