European founders and VCs urge lawmakers ‘to get EU Inc right’

Advocates for a new EU-wide company statute are pressing lawmakers to retain core elements of the proposal as negotiations continue between the European Parliament and Council. The initiative, known as EU Inc, aims to create a common corporate framework that would let companies incorporate under a single set of rules and operate seamlessly across EU member states. Supporters argue such a statute could function as a European analogue to the Delaware C Corp.

The open letter — signed by a mix of high-profile investors and founders and released on Thursday — warns that watering down central features would render the law impractical. Its backers note that the proposal already has endorsements from senior EU authorities, but say detailed technical choices will determine whether the new company form is actually adopted by founders and investors.

Signatories include venture capital figures such as Accel partner Sonali De Rycker, Sequoia partner Michael Moritz, and Atomico founder Niklas Zennström, along with founders from several unicorn companies including Alan, ElevenLabs, Lovable, Mistral and Synthesia. The letter highlights specific provisions it views as essential, notably the creation of a single central registry and a tax rule under which employees are taxed on stock options only when they dispose of them.

The campaigners also pointed to outside pressure from national interest groups, including criticism from Germany’s notaries association of parts of the European Commission’s draft. With roughly 100 days remaining before EU institutions break for the winter recess, EU Inc proponents say lawmakers must settle key technical details now to avoid a final text that would fail to achieve the intended reduction in fragmentation and boost to investment and entrepreneurship.