“While these policy changes will be welcome news to Latvian and Lithuanian startups…we now need the rest of Europe and the European Union to follow suit,” Index Ventures partner Martin Mignot said in a statement.
Index Ventures now ranks Latvia as the most “startup-friendly” country in Europe, following a legislative change to the country’s stock option policy. Neighbours Estonia and Lithuania claim the next top spots.
This comes amid a sustained campaign by Index and other entrepreneurs to make it easier to give employees options — seen as a way of aligning incentives between employees and their company. France changed its options rules earlier this year.
New data from the Dealroom x Sifted European Startups project, backed by the European Commission and European Parliament, produced for Index Ventures’ Not Optional – Making Europe the Most Entrepreneurial Continent summit shows that the value of European tech companies has increased rapidly.
The government also plans to offer incentives to venture capital investors who come to Germany, Deputy Finance Minister Joerg Kukies said at the #NotOptional conference on European innovation Thursday.
Startups have welcomed proposals from the European Commission aimed at cutting red tape and shrinking cross-border barriers for small businesses.
France vies for tech leadership with new laws for stock options
An announcement by President Emmanuel Macron today should make France more attractive to potential employees because of new rules regarding stock options.
It comes after 500 European start-up founders warned of a “brain drain” of the best and brightest in Europe.
The French 2020 budget law, voted late last year and enacted on Jan. 1, has two major measures already to make stock options of startups more attractive.
Lawmakers across the Continent haven’t given startups the compensation tools they need to share profits with employees. That’s changing.