Regulation. In Europe, business failure and bankruptcy still carry a stigma. This contrasts with the more tolerant view held in the US, where business failures among startups are often viewed as potentially beneficial and educational. Additionally, the process of establishing a company in Europe is often excessively bureaucratic, and small firms are disproportionately burdened with regulatory and compliance costs. Regionalization. Europe is not one single market. The need to localize in various European countries and deal with different languages and cultural issues, combined with the complexities of dealing with different regulatory and tax obligations in each country, makes scaling up difficult for European firms and poses a barrier to entry for global firms. The Road Ahead The venture capital market is now global, and a local focus will