"The Dutch CEO of tech unicorn Remote offers advice for startups: Depart from Europe"
In the bustling tech hub of San Francisco, Remote - a HR tech company valued at over $3bn - has been making waves. Founded by Job van der Voort and Marcelo Lebre in 2019, the company helps businesses hire and manage remote teams, growing rapidly with a Series C round of $300mn in 2022. However, van der Voort, the CEO and founder, has expressed concerns about the EU's tech regulation, believing it stifles innovation and poses a significant risk for Europe.
The European Union's complex, fragmented, and stringent tech regulations are causing headaches for many startups. The 27 member states have differing national laws and enforcement practices, leading to multiple contradictory compliance requirements for startups scaling across the bloc. This fragmentation reduces scalability and increases costs compared to unified markets like the U.S. or China.
Fintech startups, in particular, face escalating compliance demands in data privacy, AML (anti-money laundering), KYC (know your customer), cybersecurity, and financial crime prevention. Requirements evolve rapidly and vary by country, forcing firms to invest heavily in compliance infrastructure and slowing expansion into new markets.
The recent EU AI Act imposes comprehensive risk assessment and transparency requirements, with phased implementation through 2030. While aimed at fostering trust and oversight, the complex documentation and compliance demand particularly impact startups with limited resources, potentially sidelining those that see regulation as a barrier rather than a strategic asset.
EU antitrust policies and regulatory scrutiny also deter mergers and acquisition investments, limiting European firms' ability to grow into global giants. As a result, successful startups like Dutch software unicorn Bird have announced plans to move most of their operations out of Europe due to overregulation.
Many business leaders share van der Voort's view about the EU's tech regulation. At a conference in Paris earlier this month, several tech leaders called for flexible regulation in Europe to support innovation and competitiveness.
It's worth noting that nearly all European startups with over $500mn in revenue, including Spotify, Wise, and Adyen, succeeded by winning the US market. Van der Voort advises startups to leave Europe if they want to succeed.
In June, van der Voort will speak at our website Conference. If you're interested in attending, use the offer code our websiteXMEDIA2025 for a 30% discount on your ticket.
As the global technology race heats up between the US and China, Europe faces a critical juncture. Van der Voort warns that the EU needs to consider its own fate over the next decades due to tech regulation. While EU regulations intend to protect consumers and foster responsible innovation, their complexity, fragmentation, and enforcement variability create high compliance costs and operational hurdles that can hinder competitiveness and push startups to consider moving operations outside Europe to benefit from simpler legal frameworks and bigger markets.
- The complex, fragmented, and stringent tech regulations in the European Union, including those related to fintech, such as data privacy, AML, KYC, cybersecurity, and financial crime prevention, are causing headaches for many startups, as they face escalating compliance demands, varying by country, and hindering expansion into new markets.
- In his upcoming speech at our website Conference, Job van der Voort, the CEO and founder of the fast-growing HR tech company Remote, will warn that the EU's tech regulation, with its complexity, fragmentation, and enforcement variability, creates high compliance costs and operational hurdles that can hinder competitiveness, pushing startups to consider moving operations outside Europe to benefit from simpler legal frameworks and bigger markets.
