Ask HN: EU startup founders, how does one go about starting a startup?
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. 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! 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. 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. 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. Wow, that puts a damper on the whole thing. Don't believe they hype. Startups come from all over. You need to demonstrate a sound understanding of your product and your pathway. You need to have other people on board and believing in you. You probably do not need to hire two programmers at market rates and rent GPUs. You need partners. And don't be afraid to cut others in on the deal. A lot of great stuff is coming from Poland and Czech Republic - hard workers, smart people and low cost of living. You will have to sacrifice something in the early days. Indeed, and all of the good startups are incorporated in the US. I work in this area (PL, SK, CZ, HU). Definitely don't incorporate here if you can avoid it, it's so much trouble that can be avoided by simply going elsewhere. Hi If you want to minimize your cost of product development,I have a small digital studio where we provide our clients high quality work for minimal costs(Courtesy of living in Pakistan).I would love to talk to you via google meet and see if we are a match
Email is in my description.