INSUBCONTINENT EXCLUSIVE:
Thirty European tech CEOs of big startups signed a letter about stock options in Europe
Other tech CEOs can join the group and sign the letter before it is sent to policymakers on January 7.As you can read in the letter below,
Paanenen (Supercell), Taavet Hinrikus (TransferWise), Lucas Carne (Privalia), Jean-Charles Samuelian (Alan), Alex Saint (Secret Escapes), Dr
Tamaz Georgadze (Raisin), Patrick Collison (Stripe), Nikolay Storonsky (Revolut), Samir Desai (Funding Circle), Markus Villig (Taxify),
Dominik Richter (Hello Fresh), Dr
Optional: Europe must attract more talent to startupsThis following letter will be sent to Europe's policymakers on 7 January 2019
The European tech sector has never been stronger
And not all are fledgling young startups: many are already substantial, high-growth enterprises set to succeed in the global market.The days
We no longer lack ambition and capital
all like to see this fair weather continue, but storm clouds are gathering on the horizon
start-up ecosystem is a serious bottleneck to growth
Add to that the number of employees that start-ups yet to be born will need to get their ideas off the ground
higher wages of more established businesses
But policies that currently govern employee ownership across Europe are often archaic and highly ineffective
competing for the best designers, developers, product managers, and more
the incredible momentum that European tech has built up in recent years
The next Google, Amazon or Netflix could well come from Europe, but for that to happen, reforming the rules of employee ownership is
definitely not optional.According to Index Ventures, the company that is coordinating this effort, some countries already have
startup-friendly policies while others lag behind:The VC firm recommends overhauling policies in some countries and harmonizing policies
New rules should follow those six principles:Create a stock option scheme that is open to as many startups and employees as possible,
offering favourable treatment in terms of regulation and taxation
Design a scheme based on existing models in the UK, Estonia or France to avoid further fragmentation and complexity.Allow startups to issue
stock options with non-voting rights, to avoid the burden of having to consult large numbers of minority shareholders.Defer employee
taxation to the point of sale of shares, when employees receive cash benefit for the first time.Allow startups to issue stock options based
sales.Reduce or remove corporate taxes associated with the use of stock options.
