Dutch Tech CEO Advises Startups to Exit Europe Amid Regulatory Hurdles
Amsterdam, Wednesday, 26 February 2025.
The CEO of Remote warns Europe’s regulatory challenges stymie innovation, urging startups to relocate for growth. Europe’s regulatory climate risks losing ground to U.S. and China.
Mounting Concerns Over European Innovation
Job van der Voort, CEO of Remote, a tech company valued at over $3 billion, has issued a stark warning about Europe’s regulatory environment, stating that it’s ‘stifling innovation’ and creating ‘a massive risk for Europe’ [1]. Van der Voort’s concerns echo a growing sentiment among European tech leaders as the region struggles to compete with the United States and China in the global technology race [GPT]. His own company, Remote, which specializes in HR technology, chose to base its operations in San Francisco despite its Dutch origins, citing ease of business operations as the primary factor [1].
Recent Industry Exodus
These concerns are not merely theoretical. Earlier this month, major players in the European tech scene voiced similar apprehensions. At a recent Paris conference, industry leaders including Mistral CEO Arthur Mensch and DeepMind founder Demis Hassabis advocated for more flexible regulation to support innovation and competitiveness [1]. The impact of regulatory pressures has already prompted concrete action, as demonstrated by Dutch software unicorn Bird’s recent announcement to relocate most of its operations outside of Europe [1].
Trans-Atlantic Success Pattern
Research from London-based VC Hoxton Ventures reveals a telling pattern: nearly all European startups that have achieved revenues exceeding $500 million - including major players like Spotify, Wise, and Adyen - succeeded by establishing a strong presence in the U.S. market [1]. This trend aligns with recent analysis from Atomico, where Head of Intelligence Tom Wehmeier identifies regulatory fragmentation and bureaucracy as major barriers to scaling European startups [5].
Future Implications
The European startup ecosystem faces a critical juncture, with multiple high-profile events scheduled in early 2025 to address these challenges [6]. These include the upcoming 4YFN & MWC Barcelona (March 3-6, 2025) and the EU Startups Summit (April 24-25, 2025), where regulatory reform and innovation policies are expected to be key topics of discussion [6]. Van der Voort warns that without significant changes, Europe risks continued exodus of innovative companies, particularly affecting early-stage startups [1]. The continent’s ability to retain and nurture tech talent will largely depend on its capacity to balance regulatory oversight with innovation-friendly policies [GPT].