Dutch software startup Bird, which reached unicorn status in 2018, is among the latest companies to leave Europe. Co-founder and CEO Robert Vis criticized what he describes as “overregulation” in the EU.
“The AI Act, financing, compensation, taxes, employment law — starting and running a company [in Europe] is hard,” Vis said. “There are too many disparate markets that are overregulated with no clear vision for the future while the world around us is changing.”
Bird’s main product is a cloud-based platform that integrates messaging apps, calls, video, SMS, and email to manage customer communications. It also recently launched a new AI chatbot designed to assist with customer inquiries and lead generation.
Despite its European roots, Bird is operating globally, with three new offices planned in the U.S., and one each in Singapore, Dubai, and Istanbul.
Vis has made it clear that the move is in part a response to Europe’s regulatory landscape. Despite the shift, Bird will maintain a small office in Lithuania and continue to base its tax operations in the Netherlands.
This move comes amid a broader trend in the tech industry, where entrepreneurs and CEOs are increasingly vocal about the challenges of operating in the EU.
Growing discontent with Europe’s regulatory approach
Job van der Voort, CEO of Remote, an HR tech company valued at over $3 billion, has also voiced strong opposition to Europe’s regulatory burden.
In an interview with TNW, van der Voort called the EU’s tech regulations “overboard” and warned that they were stifling innovation and creating a “massive risk” for the continent’s future.
He added that many entrepreneurs share his views, arguing that Europe’s regulatory environment is making it increasingly unattractive to start and maintain businesses there. “Most entrepreneurs agree this is a huge problem,” he said.
Van der Voort’s Remote, which helps businesses hire and manage remote teams, is based in San Francisco — a move he says made it easier to get the company off the ground. “It was simply easier to start it there,” he said.
Remote raised $300 million in 2022 during a Series C round, bringing its valuation to over $3 billion.
The decision to relocate to the U.S. is becoming more common, particularly among tech companies with aspirations to scale rapidly. Research from London-based VC firm Hoxton Ventures has shown that nearly all European startups with over $500 million in revenue, including Spotify, Wise, and Adyen, have succeeded by tapping into the U.S. market.
“We’re seeing more and more companies crossing the Atlantic,” van der Voort said. “But the biggest impact will be at the early stage. Startups need flexibility, and Europe is making it harder to compete.”
The EU’s AI Act: A double-edged sword
The growing exodus of European startups comes as the EU pushes forward with its landmark AI Act. The legislation aims to ensure AI is deployed safely, transparently, and ethically.
While its advocates say it is a necessary step for ensuring responsible AI development, critics argue that its strict provisions — such as prohibitions on facial recognition and emotion recognition technologies — are overly burdensome.
As the EU moves to enforce these regulations, many tech leaders fear that homegrown European companies may struggle to compete with their American counterparts.
Elon Musk and other tech moguls have actively lobbied for a more relaxed regulatory environment in the U.S., with the Trump administration actively dismantling restrictions on AI and other tech sectors.
The debate over Europe’s tech regulations is not limited to AI alone. In recent years, the EU has introduced several high-profile regulations, including the Digital Services Act (DSA) and the Digital Markets Act (DMA), which aim to curb the power of big tech companies.
While some argue these laws are necessary to protect consumers and promote competition, others fear they will only serve to drive innovation elsewhere.
