Ask HN: EU startup founders, how does one go about starting a startup?

3 points by leviliebvin 1 year ago | 8 comments

I am currently living in Germany and after finishing my PhD, I want to jump into the startup world. I have a business plan. I know where to recruit the first employees. I don't know how to go from here.

I haven't decided on where to incorporate, but I'm asking to figure out what incorporating in the EU looks like. My first needs are: funding for three programmers at market rates for at least a year and the necessary GPU hours to go with that. And connections to meet my first clients since it's a B2B operation.

I don't know where to get funding. Where to do I get funding?

Also where do I setup shop? Besides taxes and bureaucracy, my concern is that locations are a very strong flavour in Europe. People wouldn't like living in a lot of the cities, which would make recruitment harder. London is probably the most neutral flavour but it's not even in the EU anymore.

I appreciate any tips or experiences that you can share.

t_hinman_esq 1 year ago |

Many new startups choose to incorporate in Delaware, US because of its well established corporate law. Institutional US investors will require a Delaware c-corp prior to investment, so if you incorporate elsewhere and then decide you want to raise funds in the States, you will likely need to reincorporate later. Of course there are startups all over the world, but the question is really about access to capital - typically US investors want to invest in DE c-corps. Feel free to reach out if I can be helpful!

throw4950sh06 1 year ago |

Any successful startup by European people I ever saw was incorporated in the US or UK. There are few exceptions, of course, but focusing on the US market and avoiding the EU bureaucracy seems to be crucial.

leviliebvin 1 year ago | |

I believe there have been some success stories from Sweden, but I really have no reason to go and would really not want to live there. I don't know what EU bureaucracy means in my case, since it is very much business dependent. Ease of hiring/firing would be my top concern. Also the ease of having international clients. But my main priority right now is funding.

throw4950sh06 1 year ago | | |

Mainly VAT and related accounting, which is universal. Also consider that EU doesn't think investment into software development is actually investment - not fully tax deductible. There are ways around that but you're going to need an expensive accountant/tax consultant on a daily basis.

alexander2002 1 year ago |

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