Not Optional

The UK is poised to transform its stock option landscape. If Chancellor Rt Hon Rachel Reeves implements the proposed EMI reforms this November, the UK will have the most competitive equity scheme among major economies in Europe, and globally. 🇬🇧 #notoptional Founder of Motorway Tom Leathes explains 👇

𝗘𝘂𝗿𝗼𝗽𝗲 𝗻𝗲𝗲𝗱𝘀 𝗶𝘁𝘀 𝗼𝘄𝗻 𝗗𝗲𝗹𝗮𝘄𝗮𝗿𝗲. In 1913, Delaware made a calculated bet that reshaped the global economy. By creating a simple corporate structure, it became home to the world's most transformative businesses. Today, Europe faces a stark choice: continue with fragmentation, or create its own EU–INC. As I shared with Fortune (link in comments), the numbers are sobering. Publicly traded companies started in Europe over the past 50 years are collectively valued at around $420 billion. Their U.S. counterparts? Nearly $30 trillion, almost 70 times as much. The problem isn't talent or ambition. European founders have built Adyen, Revolut, Spotify, and many emerging companies are on path to go even further. But while a Delaware Inc can raise capital and expand coast-to-coast seamlessly, founders operating in the EU must navigate 27 regulatory systems, and explain to engineers in Munich why their stock options differ from colleagues in Madrid. There is no EU single market for startups, only 27 different countries. But momentum is building. The EU–INC movement has gathered over 18,000 signatories, from leaders at Alan (Jean-Charles Samuelian-Werve), Mistral AI (Arthur Mensch), Klarna (Sebastian Siemiatkowski), Revolut (Joe Heneghan), Supercell (Ilkka Paananen), and Stripe (Patrick Collison), and approval from major EU institutions. European Commission's President Ursula von der Leyen has committed to reform. The danger? Brussels is already considering piecemeal, incremental measures. This won't work. Fragmentation must be fixed at the heart of Europe. Half measures won't solve founders' problems or create the competitive advantage Europe needs. The ambition should be clear: make Europe the best place in the world to start and scale a startup. That's why I'm backing EU–INC, and why Index is working tirelessly to turn this ambition into reality. Europe doesn't need another directive or committee. It needs EU–INC.

🚨 Breaking news: The President of the Czech Republic has signed the country’s first-ever effective stock option policy into law, coming into force on 1 January 2026. This landmark reform will make it easier for Czech startups to attract and retain top talent, bringing the ecosystem closer to international best practice. It’s the result of years of hard work by the Czech startup community. We’re proud that Not Optional has been able to play a part in these efforts. We will update our country rankings (https://lnkd.in/dd6pPaUN) in the coming weeks. 🙏 Lukáš Konečný, Vit Horky, Martin Jiránek, Barbora Werdmölder, Radek Špicar, Martin Svalbach, Marketa Prenosilova, Petr Očko, Lukáš Vlček, Tomas Ditrych Stefan Surina, Vojta Rocek, Isaiah Baril-Dore, Dominic Jacquesson MBE, Vojtech Horna, Jan Hammer Go 🇨🇿 #notoptional #esopasap

Countries that build and retain world-leading technology companies will define the economic landscape of tomorrow. But British startups are fighting with one hand tied behind their backs due to policy frameworks fashioned for a different era. Read my commentary in today’s The Times for more on why the government should: 1️⃣ Modernise EMI for the AI-age. The current thresholds – 10 years, 250 employees and £30 million in assets – were designed for a different time. I argue it should be raised to £200 million, 1000 employees; and EMI’s duration extended to 15 years. 2️⃣ Incentivise software investments, not just physical infrastructure. In a digital economy, software, not machinery, increasingly drives productivity and innovation. 3️⃣ Eliminate cross-border friction for startups. Most companies are born global and to scale they need policies that reflect that. Simplify startup visas, ensure mutual recognition of stock option regimes, and avoid penalising employees who move internationally. More in The Times (link in comments).

The Lisbon Council report adds to the growing consensus: Europe needs a pan-European solution on employee stock options. A 28th regime is emerging as the clearest path forward to support startups and talent across borders. Stock options help startups attract and retain the talent they need to scale—by giving employees real ownership and a stake in long-term success. The European Commission now has a unique opportunity to act. The Lisbon Council’s recommendations point the way: 🇪🇺 Harmonised taxation criteria across the EU, with taxation at point of sale 💶 An EU-level assured valuation methodology for strike pricing 👩💻 Broad eligibility—ensuring startups across all stages can benefit The case for a unified approach is clearer than ever. It’s not optional. #NotOptional #EUstartups #StockOptions #28thRegime #LisbonCouncil #EUInc

🇳🇱 The Netherlands ranks among the worst globally for startup stock option policies, making it hard for startups to attract and retain talent. Now there is a movement to change it. Sign a petition started by Dutch founders, operators and investors: http://flywheel.ing

“Seven European countries have changed their laws to increase employee ownership in startups to rival the U.S. in attracting talent and investment, while other countries are lagging.” “Germany, France, Portugal and the UK lead European countries in making changes that match or exceed those of the U.S., while Finland, Switzerland, Norway and Sweden got lower ratings in the Index report,” reports Reuters’ Supantha Mukherjee. Thank you!

For Europe’s tech ecosystem to thrive, its startups must be able to attract and retain the best talent by offering employees a share in the success 🇪🇺 That’s why, in 2019, Index Ventures launched Not Optional alongside 500 European startup founders and CEOs to campaign for stock option policy reform across the continent. After five years of campaigning, we’ve seen: 🎯 Policy reforms across 11 European countries 🏆 7 European countries with stock option policies that exceed or match that of the US 💸 €5bn in equity transferred to startup employees 📈 Employee ownership at late-stage startups increase from 12% to 16%📋 Stock options taken up as an EU priority With European competitiveness in the spotlight, today Not Optional has released the latest country rankings with a call for pan-European alignment on stock options and startup policies 👇 🙏 Thank you to the Not Optional's many supporters over the years including Jean-Charles Samuelian-Werve at Alan, John Collison at Stripe, Hanno Renner at Personio, Ilkka Paananen at Supercell, Eléonore Crespo at Pigment, Sebastian Siemiatkowski at Klarna, Nicolas Brusson at BlaBlaCar, Daniel Dines at UiPath, Taavet Hinrikus at Wise, Martin Mignot and Neil Rimer at Index Ventures, Andrei Brasoveanu at Accel, Bernard Liautaud at Balderton Capital, Niklas Zennström at Atomico, Saul Klein and Suzanne Ashman Blair at LocalGlobe, Ophelia Brown at Blossom Capital, Gloria Baeuerlein at Puzzle Ventures, Reshma Sohoni and Tom Wilson at Seedcamp, Staffan Helgesson and Fredrik Cassel  at Creandum, The EU Inc Petition and hundreds of others who signed letters, joined meetings with policymakers and pushed for better stock option policies locally and at EU level. notoptional.eu #notoptional