European Founders and VCs Urge Lawmakers to Preserve EU Inc.

European founders and venture capital investors are urging policymakers not to weaken EU Inc., a proposed bloc-wide corporate framework intended to make it easier for startups to incorporate and operate across European Union countries.

The latest push comes in the form of an open letter backed by prominent investors and technology founders. Supporters of EU Inc. argue that Europe needs a common company structure as simple as the Delaware C Corp, reducing the legal and administrative fragmentation businesses face when expanding across the bloc.

The campaign has already gained support from senior EU institutions, and the European Commission is working on a harmonised corporate legal regime. Advocates are now focused on ensuring that negotiations do not strip away features they consider essential to making the system useful to founders and investors.

Founders push for a single registry and simpler stock-option rules

The open letter calls for a central company registry and argues that employees should generally be taxed on stock options when they dispose of their shares rather than when the options are initially granted. Supporters say details such as these will determine whether founders actually choose the new structure.

The campaign has repeatedly emphasised that implementation will matter as much as the broader concept. Stripe co-founder Patrick Collison has also publicly highlighted support for the EU Inc. initiative as technology leaders seek a simpler framework for building companies across Europe.

Not everyone agrees with the proposed approach. Germany’s Federal Chamber of Notaries has raised concerns about elements of EU Inc., reflecting the national interests and legal traditions that lawmakers must reconcile before reaching a final agreement.

Major European investors and founders back the campaign

The new letter includes support from well-known venture investors, including Accel partner Sonali De Rycker, Sequoia partner Michael Moritz and Atomico founder Niklas Zennström. The campaign has also drawn endorsements from founders associated with companies including Alan, ElevenLabs, Lovable, Mistral and Synthesia.

Supporters have continued promoting the proposal publicly, including through posts emphasising the importance of getting the final EU Inc. framework right.

Some successful European-founded technology companies have ultimately established headquarters in the United States, a pattern EU Inc. supporters hope a more unified corporate structure could help address. They argue that reducing administrative barriers could make Europe a more practical place to establish and scale companies without navigating separate corporate systems in multiple countries.

With negotiations continuing between European institutions, advocates are pressing lawmakers to preserve the proposal’s central features rather than produce a compromise they believe founders would rarely use. They argue that a workable common company structure could reduce cross-border friction, make investment easier and give startups a clearer path to operating throughout the EU.