“I advise startups to move out of Europe,” states the Dutch CEO of tech unicorn Remote.

      As the US and China compete for supremacy in the global technology arena, European founders are increasingly worried that the region's established bureaucracy is hindering its ability to innovate and expand.

      Job van der Voort, CEO and founder of Remote, an HR tech firm valued at over $3 billion, stated, “The EU is going too far with tech regulation. It is stifling innovation and poses a significant risk for Europe.” He expressed to TNW that many business leaders share his perspective, noting, “Most entrepreneurs agree that this is a major issue.”

      Concerns like these are being voiced more frequently.

      During a recent conference in Paris, Mistral CEO Arthur Mensch and DeepMind founder Demis Hassabis stressed the need for regulation in Europe that is "flexible enough" to foster innovation and competitiveness. Just over a week later, the Dutch software unicorn Bird announced its decision to relocate most of its operations out of Europe in response to "overregulation."

      “I think more companies will be compelled to follow Bird’s example,” van der Voort commented. “However, the most significant effect will be felt by early-stage companies.”

      He pointed out the growing trend of European startups relocating to the US for growth opportunities. Research from London-based VC Hoxton Ventures revealed that nearly all European startups with over $500 million in revenue—such as Spotify, Wise, and Adyen—achieved success by penetrating the US market.

      Van der Voort believes that stringent tech regulations are pushing businesses to seek opportunities outside Europe. “It’s becoming less appealing to start and run a business here,” he remarked. “That’s why I advise startups to leave Europe if they aim for success.”

      He has acted on this advice himself. After founding Remote in 2019 with Marcelo Lebre, they opted to establish the company in San Francisco. “It was just easier to get started there,” he explained.

      Since then, Remote, which assists businesses in hiring and managing remote teams, has experienced rapid growth. In 2022, the company secured $300 million in a Series C funding round, increasing its valuation to over $3 billion.

      “The EU needs to reflect on its future in the coming decades,” van der Voort cautioned. “Regulation that obstructs innovation complicates matters for startups and is extremely detrimental to the economy.”

      Job van der Voort has previously spoken at the TNW Conference, which is scheduled for June 19-20 in Amsterdam. Tickets for the event are currently available, and you can use the code TNWXMEDIA2025 at checkout to receive a 30% discount on the ticket price.

      Published on February 25, 2025 - 6:05 pm UTC