European Founders and VCs Urge Lawmakers to Preserve EU-Wide Company Statute

Advocacy for a Unified European Company Statute

A coalition of European startup founders and venture capitalists has sent an open letter to lawmakers, emphasizing the importance of the proposed EU-wide company statute. This initiative, known as the EU Inc campaign, seeks to establish a common legal framework for companies to incorporate and operate across all EU member states. The letter expresses concern that the final legislation might be diluted, rendering it ineffective for startups.

Addressing Fragmentation and Fostering Investment

Proponents of the EU Inc campaign argue that a unified company statute would significantly reduce the friction and fragmentation currently faced by European companies. They believe this would unlock new investment opportunities and stimulate entrepreneurship within the bloc. The letter highlights that seemingly technical details, such as a central registry and clear rules on stock option taxation, are crucial for the statute's practical utility for founders.

Ongoing Legislative Negotiations

The European Parliament and Council are currently negotiating the final text of the legislation. The EU Inc campaign has secured endorsements from top EU authorities, but national lobbies, including German notaries, have raised objections to certain aspects of the European Commission's proposal. With approximately 100 days remaining before the winter recess, advocates are pressing policymakers to maintain the core features of the proposal.

Prominent Support from Tech Leaders

The open letter has garnered support from notable figures in the European tech and investment communities. Signatories include venture capitalists such as Sonali De Rycker (Accel), Michael Moritz (Sequoia), and Niklas Zennström (Atomico). Founders from unicorn companies like Alan, ElevenLabs, Lovable, Mistral, and Synthesia have also endorsed the campaign, underscoring the broad industry backing for the initiative.