European Founders and VCs Urge Lawmakers to Preserve EU-Wide Corporate Framework
A coalition of European startup founders, venture capitalists, and tech leaders has called on lawmakers to maintain the core features of a proposed EU-wide corporate statute. The initiative, known as EU Inc, aims to create an equivalent to Delaware C Corps in Europe by enabling companies to operate across member states under a unified legal framework. Advocates warn that diluting key provisions could render the legislation ineffective and hinder European entrepreneurship. The open letter highlights concerns over fragmentation and regulatory friction currently stifling growth for startups. It emphasizes the importance of maintaining one central registry and ensuring employees are taxed only when they exercise stock options—technical details seen as critical to success. With negotiations ongoing, supporters stress that finalizing a strong version is urgent ahead of winter recess. The campaign has gained high-profile backing from VCs like Accel’s Sonali De Rycker and Sequoia’s Michael Moritz, along with unicorn founders such as those behind ElevenLabs and Synthesia. Their message underscores the potential for EU Inc to shift startup headquarters back to Europe if implemented effectively.
Topics: company incorporation EU Inc European Union legislation startup ecosystem