EU–INC is the single best thing Europe could do to catch-up in the AI race A simple unified pan-European startup structure, with modern employee ownership and simple access to capital, able to tap into Europe’s full talent pool. ‼️ but it’s at high risk of not seeing the light of day. You can help👇
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The difference between software engineering at large corporations and small ones will increase. Start-ups adopting practices of Google will look even sillier than before, because they can now build so much faster and with so much less constraints.
actually, there are three economic superpowers in the world by this measure. There’s the United States, there’s China, which is clearly number one, and then there’s the EU, which are roughly co-equal.
I think we should use this kinds of data to completely turn around Europe's immigration policy: - We should have super easy inflow for immigrants from countries whose previous immigrants have shown low crime rates You're from Japan? Just fly here and you can stay forever - We should then almost completely ban any inflow from countries whose previous immigrants have shown high crime rates with instant deportations
The European Union is big - the third largest economy in the world, but it has great difficulty in transforming economic strength into geopolitical clout.
Technologies are not neutral, but political. Money is indeed one of the incentives, but not the only one. A mixture of millennialism, eugenics, search for utopia and for a spread of the specie beyond the confines of the Earth, are all elements we find among the founders’ views.
Making trade deals with EU is good for Canada. Anything beyond that is just anchoring ourselves to a block who’s economic ambitions aren’t much higher than being an “open air museum”.
In the most early adopting tech pioneering place that's Silicon Valley new startups aren't even building software anymore And it's debatable if anyone will actually need a custom harness or it won't just be generically offered by the AI frontier companies So software is mostly dead and hardware it is
Fruit Pig are one of the few black pudding producers at scale who use fresh blood - most black pudding these days is made with dried blood imported from Europe.
Worse, U.S. officials now openly support and encourage politicians from far-right anti-European political parties, partly because they are ideologically aligned, but partly because Americans now want to weaken the European Union so that U.S. tech companies can evade any regulation, or even taxation.
Portugal's choice is cultural though and completely fits the general spirit in Europe which is fully anti-tech, anti-AI, anti-entrepreneurship, anti-business and anti-progress
there's still a lot of startups in this batch that are not shipping fast enough. And so obviously there's variation in shipping speed. It's not just the rate at which you can produce things. You have to think of these ideas first, right?
And yet, life expectancy about two years more than the national average is rather common in rich regions with selective migration, even in European countries with even access to health care, like France and Spain.
Met a German founder this week and asked him if all the stories one reads about the challenges of startups in Germany are exaggerated. "No, they're understated." Proceeded to describe spending a full day having a 90-page investment contract read to him (mandatory under German law; § 13 BeurkG) by a notary that then charged €30,000. That was for his first company. His second company, needless to say, was not incorporated in Germany.
European governments and thus the EU too is losing lots of tax income from Europeans fleeing Next on the agenda is the European Exit Tax and after that I think they will try to add Worldwide Income Tax (like the US already has) meaning it doesn't matter where you live in the world as a European citizen, the EU will tax you for your entire income!
I think it's all about having regulatory clarity and ease for all sizes of of companies. Um and if we can work with Congress to do something like that, I think that would be that would be the biggest boon for for for startups.
if if DC is in a vacuum isn't hearing anything from the startup ecosystem or even from big tech ecosystem or even from financial services or all these different industries, we can't make the best decisions.
have to abide by this rule that was written before LLMs were even a thing. And that shows how challenging sort of the the the situation is if you try to set the line too firm to begin with.
The USA has kept dribbling small amounts of military support for Ukraine because it gives the USA a great deal of leverage, the ability to both shape how Ukraine fights its war and even how European states prepare.
And the type of risk that we are asking investors to take is um, we know the physics works. We know that there's infinite demand and how we go from here to there is technology execution. And guess what? Venture capital in the United States is the best at underwriting tech risk of anywhere in the world.
Many startups are racing to create foundational world models, but I think the first ones to succeed will likely be the platforms in control of this data bank.
And so speed determines success and failure and speed is determined by infrastructure. This is driven by really boring sounding things like how well do your purchasing and recruiting and spending processes work. This is as important as how well do you understand understand the object level technical content of the thing that you're building.
And one of the harder lessons as a startup founder, one of the harder things I think to to really deal with is the fact that you cannot delegate your judgment. As as the CEO, you must always make decisions that make sense to you, no matter how much momentum or inertia alternatives seem to have.
I think one of the things that makes science the company very special is that it has both of those cultures and is able to integrate them and we're able to simultaneously do some really cool research that I think is really at the edge of the Overton window while simultaneously running clinical trials in six countries now with an approved medical device in Europe and clinical trial results in the New England Journal of Medicine.
You know, in hindsight, I think that um that was a a poor intuition. Uh it's been pretty robustly and reliably the case over many decades in Silicon Valley has a surfeit of opportunities.
But now, people know that, well, the risk of the status quo is actually extremely high. And so, even if there's risk in doing all the new things, well, this path also looks pretty dangerous. And so, I really think there's never been a better time for startups to to sell um and to have their products get adopted at, you know, pretty meaningful scale right out of the gate.
So, I um yeah, I think maybe maybe a better way of saying it is 20 20 years ago that whole lean startup thing was uh was almost the only thing to do because of capital available and you didn't have AI that made, I don't know, spinning up an organization with many different potentialities and capabilities so much easier, whereas now I think you can start these much more aggressive and ambitious things up front.
many of the companies that were most successful over the last 10 years, so many of them are are very anti-lean startup, right? Uh whether it's, you know, the labs themselves or Anduril or um yeah, you you you you can go down the list. A lot of them have this characteristic.
Yeah, I mean I think uh sometimes it's uh a product that you build that might have access to particular kind of data that the underlying model might not the a general model. So it might be you're building something to help users organize all their own personal information and the model won't necessarily have access to that. And so there you can have a big advantage because all of a sudden your model has visibility or your product has visibility into important data.
And now I actually think with the power of agents um and AI broadly speaking, it's much closer to Goliath versus Goliath. Like I think but maybe the startup is like a Mecca Goliath that is like vastly enhanced by the power of agents and AI and you know, the the large companies are the sort of like more traditional Goliath, so to speak. But I think that startups now like if you properly embrace AI agents and um figure out the way to leverage their strengths in the most like ambitious ways, you can easily outcompete incumbents.
I think concentration of power has basically been bad in every moment of human history um to varying degrees of course but I have a real spirit and I think this is part of the startup spirit of thinking that the world, the economy, society is the best off when power is very widely distributed
it is both true that you know maybe creating super intelligence will be the most important thing yet to happen in the history of business or human society and also that it will pale in comparison to some new startup something that hopefully one of you will do.
In fact, if if we are right that AI is going to be such a big change, startups will be much more important to making sure that the power of this technology gets widely distributed throughout the economy and society and is not just concentrated in a few companies or models.
one of the most important things we discovered along the way is it's extremely difficult to iterate with outside suppliers, particularly outside suppliers in aerospace, which are let's just say I have no kind words for them. So we chose to build our own machine shop. And now we can go from a digitally designed engine part to a prototype part in about 24 hours.
the the big lesson is that for me is technology is changing all the time, and so long as you're able to confront the reality, so long as you are able to learn, the technology itself actually doesn't matter.
one of the things I've always believed believed in is what makes great companies is a unique perspective about the world that you deeply believe in. It's not so much the technology, it's not so much uh the market even.
And this in turn means that if we really want to find a way out of the impasse, advocacy for protection and support should be tied to demands for systematic reform.
To put this same story another way, the European car industry in the early 2020s was a prime example of greedflation i.e. companies taking advantage of the COVID shock and other disruptions and to hike profits at the expense of consumers.
The two seemingly contradictory trends connect, because the relatively low rate of productive investment leaves European industry vulnerable to its most vigorous competitors whose firms are contending with an even more deflationary macroeconomic situation at home in China.
And now it's Everybody's Perfect, a book that pretty much defines what it means for one text to be "in dialog" with another text. In this case, it's Ada Palmer's Inventing the Renaissance, a stunning magnum opus that tells not just the story of the Renaissance, but the story of the story, all the different ways the Renaissance has been used, abused, revised and recovered, starting with the Renaissance itself. It's a book that will make you rethink everything you know about European history, about the world today, and about the very idea of history itself
elevators are the rare part of the economy where Europeans have embraced market dynamism while Americans choose overregulation and labor market rigidity.
Europe is not actually poor. Japan is about as wealthy as Europe, and almost all Japanese homes are air-conditioned. Europeans could afford to air-condition their homes (and their hospitals!) just like the Japanese do.
I think like in startups the term is agency. Like somebody who's high agency who's just going to get things done, who's never going to like say no to something. I think like that attitude is really important of like okay, if I don't know something, I'll just learn it.
And usually I like the customer is hyper scale. They have the scale. If they like what you have, they're willing to pay millions of dollars next few years. And even giving some warrant is worth it because you have a big one customer, you can scale.
I suspect the same is often true in the rest of Europe: NIMBYism is the ultimate reason why the French and German states don’t solve their housing shortages through unbanning densification, but since the claims of the NIMBYs have been preemptively conceded by everyone, NIMBYism has basically remained latent.
But this effect is far too small to explain the increase in house prices in Europe since 1914, when, after all, most urban continental Europeans lived in flats.
And soon we have a precedent that every new pope feels he has the authority to knock down every pawn upon the chessboard if he feels like it. Once that is the norm, even a fairly nice pope still inherits the idea that the pope is going to overthrow and replace governments. And this creates a unique instability within Italy that no other part of Europe is subject to
Machiavelli is the first person that we have ever in the European tradition to suggest that it could be viable for there to be more than one political party in a state at the same time.
if if we're if we're too ambitious and we're at the outset and too ambitious and visionary about the product we want to build, then we will probably miss product market fit because we won't start at a small enough humble enough place
in the Peter Teal sense it's almost a moral arbitrage because there's something in our gut as a product you you became a founder an entrepreneur because you wanted to go be an innovator and so it can feel like a beatdown that your path to innovation starts with copying other people's work
I think part of the theory is like if you're building tools that are this complicated, you kind of want to have a 10 to 15 year time horizon on on building out these efforts.
They're the only uh power in Europe that doesn't need to maintain a large standing army because if Britain could maintain a competent navy, no army's going to reach British shores cuz they're going to be drowned at sea.
I think the the whole industry bends towards youth for that reason and because it's a hustle business like there there's there's always a rock you haven't looked under and you know age brings children and homes and and and other requirements you get tied to and responsibilities and you're just not able to go spend 80 hours a week studying YouTube like you just can't.
I I definitely think I'm so aware of the fine line between success and failure, especially on your first company. And and and it's so it pains me how much founders and es especially I see it in men, not all men. And I have four sisters and a bunch of daughters. But I would say I see it in a lot in men and and friends, college friends, people I've grown up with that if they had an initial failure, if they had failures, they get attached to it and they start feeling defined by it
The way I think of the abyss is it's this place that we go to as founders and entrepreneurs after our thing, after it dies or it's bought or it's over for whatever reason. It's this amorphous place that we are in our life that has no structure.
Europe, along with China and the United States, is an economic superpower. And, at this point in time, it is arguably the world’s only democratic superpower.
According to Harvard Law School, among venturebacked companies that have the standard best practices set up that you got from your lawyer, okay, only 20% of founders are still the CEO 3 years after going public.
so many of the best practices that your lawyers, your bankers, whoever advisers you have, they're going to be pushing best practices on you that are younger than the trees in your local park.
I call it the force that no one controls but everyone obeys that tends to drag organizations down into mediocrity to the point that we lose control of them. Now, sometimes we lose control of them because we get fired.
And so, maybe what you're seeing is that this group of people in Europe and the Middle East over the last 10,000 years has moved into a a period of relatively more stable food, where building up stores of fat are not as advantageous, and there's been selection against this combination of traits.
So we just could not see a way this could happen by chance and once we saw that we really felt quite convinced that this was a real signal and that really somehow there has been natural selection to increase the genetic changes that today manifest themselves as more years of school at predicting more years of schooling.
Canada and much of Europe have adopted different interrogation techniques — such as the PEACE method — which emphasize collecting reliable information over coercion. These approaches still garner confessions; they’re just more reliable.
So, what if geopolitics was to go horribly wrong and tensions escalate and Europe find itself suddenly locked out of US cloud services? I hope that doesn't happen. I still think it's fairly unlikely, but it's no longer unthinkable.
The Lean Startup helps you build a valuable company. Incorruptible is about how and why to protect it, keeping a company mission-driven over the long term instead of letting it rot from the inside.
Nor nor did I I would say my mistake is I didn't deeply internalize that they they really had no other options that that that a VC would never put in 510 billion of investment into an AI lab with the with the hopes of it turning out to be anthropic. And so that was my miss.
The link between venture capital and evangelical Christianity was closer than I thought. They're not just analogous; they deliberately cross-pollinate.
I believe that data - real-world data, mostly human-generated, validated, and cleaned - is the only reliable moat we have as software founders in the near and mid-term future.
At Anthropic, we don't build for the model of today, we build for the model of six months from now. And that's still my advice to founders that are building on LLMs.
1913: The Year Before the Storm presents a whimsical slice of Central Europe. Art historian Florian Illies collates fragments of leading figures month by month, diary-entry style.
I see no evidence that I'm dragging people along with me. I feel like each each book feels like another startup and that I've got to go out and make it happen almost as if I've not written one.
investors at many tech companies, including most on the large cap list, have given up their corporate governance rights, often voluntarily (through the acceptance of shares with different voting rights), to founders and top management in these companies
Because today, if you take France for example which is a beautiful country with a lot of talented people, but public expenses are 58% of the country's GDP, it's maybe as much more than in the latest stage of the Soviet Union.
I think this situation, this historic wrong that’s been done is, put simply, is just a gigantic PR mistake for France. There’s no entrepreneur that sees, that aspires to be the next Pavel Durov to create the next Telegram, sees this and wants to operate in France after seeing this.
The average European and UK voter, once he or she moves on from immigration, will notice how Europe and the UK have made energy unaffordable, stopped its growth-exactly as degrowthers wish-and deindustrialized, on the altar of climate policies that do nothing to improve the climate.
This must be Europe's Independence Moment. I believe this is our Union's mission. To be able to take care of our own defence and security. To take control over the technologies and energies that will fuel our economies.
Battlelines for a new world order based on power are being drawn right now. So, yes, Europe must fight. For its place in a world in which many major powers are either ambivalent or openly hostile to Europe.
And that's the thing, it's the pool of data, and I think that's what people miss. We as paleontologists get caught up on single superlative specimens and then try and treat them as a silver bullet almost.
One interesting point is that, in China, you ask the companies to innovate first, and then you regulate after, right? So, that has led to things like P2P platforms. It’s led to lots of kind of financial innovations, some of which has actually been very helpful and good, some of which had been disastrous, but the intention to regulate after the fact is to really not slow down or hinder the innovation. This is a very different approach from Europe. You regulate first, and then companies have to work around that.
We really don't have any well-documented case of anybody, say, from China visiting Europe or Europe visiting China before the Mongols. But since Chinggis Khan, there's never been a year without contact between east and west. It was permanent. Once he created it, it was permanent.
Die Bundesregierung wird zukünftig alle finanziellen Mittel zur Verfügung stellen, die die Bundeswehr braucht, um zur konventionell stärksten Armee Europas zu werden.
I am not here to tell you that the medieval period is a specifically peaceful time, but it pales in comparison to what goes down in the early modern period, in which both the apparently beloved Renaissance and Enlightenment periods lie.
I have written forewords for Amir in the past on two of his prior books, Ecosystem Arabia: The Making of a New Economy and Venture Adventure: Startup Fundraising Advice from Top Global Investors, both of which I recommend.
And it struck me how the most well-known brands have stood for one clear thing. Like they have a clear position. And so in order for superhuman to be memorable, I believed that we needed to occupy a clear position that was unique and which was available and which reinforced our product strategy.
I knew that our competition was not going to be startups. It was incumbents. And I also knew that incumbents generally struggle with speed because by definition they have massive scale and usually entrenched architecture.
I think that they're trying to shift the narrative. They're trying to protect themselves. We saw this years ago when ByteDance was actually banned from some OpenAI APIs for training on outputs. There's other AI startups that most people, if you're in the AI culture, were like they just told us they trained on OpenAI outputs and they never got banned.
The relative absence of pre-colonial states meant that the newly independent African states were largely European inventions; modern Kenya, for instance, inherits the boundaries of British East Africa, which was created by pulling together the Kikuyu, Luo, Luhya, Kalenjin, and Kamba ethnic groups.
I really believe that the founder led growth is not being popularized enough that you do not need growth teams until you actually can start running experiments on your user base
Many software investors eschew hard tech startups because of their capital intensity, but it’s hard to deny that huge returns are possible in hard tech: just consider SpaceX.
Fascinating subject. Countries are made of stories. Kings didn’t need their subjects to agree, but nations do. So to build a nation, they need to make a story that helps people feel a shared identity, nationalism, and what distinguishes them from their neighbors. Back-creating a history. Founders of Israel did this brilliantly.
The Social Network is substantially made up, more a source for vibes rather than a source for facts. Even the vibes fail to cohere with reality. And yet it convinced many proto-founders to put in YC applications.
There must have been a way that multiple languages understood the same writing system. Or maybe there was something like Latin. You know how there was a period in Europe where most people were illiterate and there was this priesthood who all understood Latin and they wrote in Latin? Maybe the hieroglyphs represent a kind of Latin in the ancient Maya world.
You can set out to build a good business and it’s still fine. Maybe the long-term business model of Perplexity can make us profitable in a good company, but never as profitable in a cash cow as Google was. You have to remember that it’s still okay.
My message today is simple. Paul Valéry said, at the end of the First World War, that we now know that our civilizations are mortal. We must be clear on the fact that our Europe, today, is mortal. It can die. It can die, and that depends entirely on our choices. But these choices must be made now.
And so yes, the era when Europe bought its energy and fertilizers from Russia, had its goods manufactured in China, and delegated its security to the United States of America, is over.
We cannot sustain the most stringent environmental and social norms, invest less than our competitors, have a more naive trade policy than them and think that we will continue to generate jobs. This no longer holds together.
Employees don't want what you want. Customers don't want what you want. Uh you know, that that one of the challenges of the whole stock option thing is entrepreneurs and founders think that other people will be as motivated by owning part of the company as they are. They are not. Not even close.
My understanding is there are Nazis in Ukraine and there are supporters of white supremacy theories, but also my understanding is that they are extremely marginal and they are more marginal than the same sort of groups are in Central Europe, maybe in the U.S. as well.
And oftentimes it's more important to them to have the public perception that they're good directors so they get the next best deal. If they have a reputation for taking on management too aggressively, word will get out in the small community of founders and they'll miss the next Google.
The only interesting problem is dramatically reducing the cost of access to orbit, which is, if you can do that, you open up a bunch of new endeavors that lots of start-up companies everybody else can do. One of our missions is to be part of this industry and lower the cost to orbit, so that there can be a renaissance, a golden age of people doing all kinds of interesting things in space.
All the evidence is that Hispanics are integrating into the American mainstream more quickly and more effectively than the European immigrant groups that came starting around 1835.
And I believe that there is a good chance you would've had World War II in the absence of Hitler. I believe that Germany was very powerful, it was deeply worried about the balance of power in Europe, and it had strong incentives to behave aggressively in the late 1930s, early 1940s.
The thing is, being a particularly complex or efficient agrarian economy doesn’t seem to have been the most important thing for producing the industrial revolution or it almost certainly would have happened earlier and probably not in Europe.
When you take venture funding, you sign up for a rocket ship ride that will either take you to the moon or to crash-land painfully back on earth. Those are the only two choices. And both rides tend to require heavy extraction of value from the customer.
A successful startup has about five years until they become a new incumbent. Um and and they actually start to behave like an incumbent. That's rational. Like of course that's rational. Like they've now built something worth defending.
the reality is the kids that make new things work from scratch. It actually turns out that they actually have been deep in the domain for a long time. Almost every case, they've been thinking hard about the problem that they're trying to solve actually for in in a lot of cases for many years.
It is the kind of book you will keep by your desk and pull out from time to time to figure out how to approach an issue or to help one of your senior leaders figure out how to do that.
The fast route — venture capital funded — is going to impose constraints on your business that will ultimately make it difficult to remain true to your open-source mission.
Selling is hard. Building a repeatable model with a team that you attempt to rapidly scale is even harder. Fortunately, Mark Roberge, who was one of the very first employees at HubSpot shares the processes and frameworks he used to build a sales machine. If you like the principles behind Lean Startups, then his data- and experiment-driven approach to sales will be very appealing.
It goes much further and deeper into how to approach actually doing Lean in your business than Eric Ries's The Lean Startup book. It also has some awesome case studies showing how lean can apply to any industry. See my full review here.
This is Steve Blank's textbook to starting a company. It's the Four Steps to the Epiphany, expanded and much more readable. If you want to deep dive into the Lean methodology, this is the book to read.
This book was written before the Lean Startup movement, but espouses many of the same concepts. If you feel like you're starting at zero in understanding what to do to become customer driven, this is a good place to start.
when plague finally diminished in Europe, not because of any advance in medicine, but because fourteen generations of exposure gave natural selection time to work
As a Renaissance historian, I feel it’s my job to shoulder the other half of the load by talking about what the Renaissance was like, confirming that our Medievalists are right, it wasn’t a better time to live than the Middle Ages
in school they talk as if the plague swept through in 1348 then went away, but the bubonic plague did not go away, it remained endemic, like influenza or chickenpox today, a fact of life.
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