[merek]

> Traditionally European VCs and founders both operated under the assumption that startups need to save money rather than spend to get the best. And consequently those startups don’t grow into big companies that would pay for talent.

I wonder if startups have a better chance of becoming profitable in the EU than in the US, despite the on-average smaller company size.

Reasoning: careful cost management gives a startup more time to understand the problem and to test more ideas. Compare to a startup with a high cash burn rate, the window to test and iterate is much smaller.

Would anyone know of any sources that may support / reject this idea?

[Sevii]

On the other hand, at will employment in the US allows startups to have big layoffs when things go wrong allowing them to more easily survive through hard times. That is not easy to do when you have to give months of notice before firing anyone.