Pavel Durov: belief

Transcript context

…Yeah, these things become a slippery slope. So, you’ve, for many, many years, including currently, have spoken very highly of France, you love French history, French culture. I think this situation, this historic wrong that’s been done is, put simply, is just a gigantic PR mistake for France. There’s no entrepreneur that sees, that aspires to be the next Pavel Durov to create the next Telegram, sees this and wants to operate in France after seeing this. There is no justification for this arrest, there’s a misapplication of the law, all kinds of pressures, all kinds of behavior that seems politically motivated, all that kind of stuff, all the excessive regulation and the bureaucracy, a nightmare for entrepreneurs that dream to create something impactful and positive for the world. So, what do you think needs to be fixed about the French government, the French system and then, zooming out, because you see similar kinds of things in Europe, that could enable entrepreneurs, that could reverse the trend that we seem to be seeing in Europe that is becoming less and less friendly to entrepreneurs? What can be fixed? What should be fixed? I think the European society must decide where they want their ever-increasing public sector to stop increasing, what they think should be the right size of government. Because today, if you take France for example which is a beautiful country with a lot of talented people, but public expenses are 58% of the country’s GDP, it’s maybe as much more than in the latest stage of the Soviet Union. So, you have this disbalance where you have many more people representing the state as opposed to people trying to bring the country’s economy forward by creating great products and great companies. The start-up field and my field, social media field has been affected by it immensely. There was one great start-up in this realm in France in the last 10 years, it was this location-based social network, it was eventually sold to Snapchat. But before it was sold, the founder asked me whether he should sell, I told him, “Never sell. You have a great thing going. You have lots of users, you have organic traction in many countries and the first of this kind of success story in France.” But then he sold anyway in a couple of weeks. And later I met him, he’s trying to do a new thing now, I met him and I asked him, I was trying to understand what went wrong and one of the things he told me about is that, while he was trying to run his company, competing with Facebook, Instagram, Snapchat, having all this pressure from investors, trying to hire the best people and persuade them to go to Paris, and he did a great job by the way, but while he was trying to do that, he got also attacked by some silly investigation, again, involving the data protection issues which lasted forever and was gradually sucking blood of his team and his company, constant interrogations, disclosure requests. And this is a young company, it significantly increases the level of stress and, at some point, I think the pressure was too much, he decided to, again, just sell it. Eventually it turned out that there was no issue, the investigation ended as far as I understand with no charges but, such investigations, they have a price, they have a cost. And unless the society realizes the cost of projects, of companies, of start-ups that are never created or sold to the United States at the very early stage or other countries resulting in decreased economic growth, things won’t change. I think we just talked to a guy a few days ago who left France and started a business here in Dubai and one of the reasons he had to leave France is that the government started an investigation on his company and they frozen his bank accounts and this investigation that involved taxes lasted for many, many years, I believe he said eight years. is that the government started an investigation on his company and they frozen his bank accounts and this investigation that involved taxes lasted for many, many years, I believe he said eight years. And at the end of this eight years, the government reached to the conclusion that there was nothing wrong, he’s good, it’s okay. In the meantime, his corporate bank accounts were frozen, his business died. The only reason why he was able to retain sanity is because he moved to Dubai and started a new company which is incredibly successful and now he’s enriching this city which we’re in right now with his great ideas and creativity.…

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