For years, if you were a European founder dreaming big, your gaze turned westward. The U.S., with its deep venture pools, unified legal systems, and aggressive investor networks, was the de facto launchpad for startups looking to scale. Incorporating in Delaware was more than a legal checkbox, it was a rite of passage. But times are changing, and so is the terrain.
As political uncertainty casts a long shadow over the U.S., Europe is quietly preparing a seismic shift that could redefine its startup destiny: the 28th regime.
From Patchwork to Powerhouse: A New Kind of EU Company
Today, startups operating in Europe face a complex mosaic of 27 national legal systems. Want to scale across borders? Prepare for duplicated paperwork, contradictory tax regimes, labor law confusion, and a jungle of compliance costs. That friction doesn’t just stifle innovation, it drives ambition offshore.
The 28th regime is set to flip the script.
Slated for a legislative proposal in early 2026, the 28th regime would offer a harmonized, optional, EU-wide legal framework for startups and scale-ups. Think of it as a “virtual 28th member state,” one set of rules, digitally native setup, no minimum capital, and seamless recognition across the EU. No more shopping around for “friendly jurisdictions” or navigating legal spaghetti to expand.
Why This Is Europe’s Chance to Leapfrog
This isn’t just a bureaucratic update, it’s a strategic redesign of Europe’s startup architecture, and a powerful signal that the EU is finally serious about becoming an innovation superpower.
Here’s why it matters now more than ever:
- US Political Volatility = Startup Drift
As U.S. policy swings unpredictably on immigration, tax, and tech regulation, many international founders, and investors, are looking for more stable havens. Europe’s promise of continuity, inclusivity, and rule of law may no longer be “boring,” it’s becoming a strategic advantage. - Cross-Border Is the New Default
Today’s startups think globally from day one. Whether it’s SaaS, fintech, or climate tech, the most scalable companies need to operate fluidly across markets. The 28th regime could finally give Europe a legal backbone to match its economic scale. - An EU-Inc for the AI Era
Inspired by forward-thinking initiatives like EU-Inc.org, the regime incorporates startup-native principles, rapid incorporation, digital governance, and even potential future modules for unified tax and insolvency laws. It’s not just legal reform, it’s infrastructure for innovation.
What This Means for Founders, Funders, and the Future
If done right, the 28th regime could:
- Level the Playing Field for startups from Lisbon to Vilnius, enabling equal access to EU-wide markets and talent.
- Catalyze Capital Flows within the continent by reducing legal uncertainty for investors, making it as easy to fund a Berlin-based AI startup as a Bay Area one.
- Spark a Brain Gain as founders who once left for Silicon Valley reconsider building from within Europe, on European terms.
And beyond startups, it’s a blueprint for a more resilient European economy, one built not just on regulation, but on regeneration.
The Startup Nation(s) of Europe: 2026 and Beyond
This is Europe’s opportunity to go from a fragmented innovation archipelago to a unified, startup-first ecosystem. But legislation is only the first step. Execution will require agility, buy-in from member states, and above all, bold vision from the startup community itself.
The question isn’t whether the 28th regime can compete with Delaware.
The question is, can it surpass it, not by imitation, but by reimagination?
Europe doesn’t need to copy the Valley. It needs to design the future.
And with the 28th regime, it just might.
Unveil Ideas, Ignite Innovation
Otso Lindfors
Founder & Visionary at Apxt Consulting
Passionate visionary at the helm of Apxt, igniting the fusion of design, strategy, and innovation. With a profound curiosity and an insatiable appetite for redefining possibilities, I orchestrate our journey to unravel the strategic depths of business and design. Just as a composer envisions harmonies, I craft strategic narratives that resonate with authenticity and excellence, leading Apxt towards a future defined by innovation.
