China’s grueling ‘996’ work culture is being debated by European startups — 7 founders and VCs on why they are resisting

A debate has emerged in the European startup scene regarding the adoption of a "996" work culture (9am to 9pm, six days a week) to compete with the U.S. and China, where such practices are more common; however, many European founders and VCs are pushing back against the idea, citing concerns about worker well-being, retention, and the unsustainability of overwork, instead arguing that Europe needs more aggressive funding and a stronger ecosystem to compete effectively, as companies like Spotify, SAP and ASML have demonstrated that innovation and sustainable cultures, rather than overwork, are the key to success.

Analysis

A significant debate is unfolding within the European startup ecosystem concerning the adoption of intensive "996" work cultures, prevalent in China (e.g., Alibaba, TikTok) and parts of Silicon Valley, as a means to enhance global competitiveness. Proponents, including some venture capitalists like Sebastian Becker of Redalpine and political figures like German Chancellor Friedrich Merz, argue that longer working hours—potentially 60-70 per week—are necessary for Europe to rival the U.S. and China, where such intensity is more common. This push is partly fueled by a perception that Europe lags in producing tech behemoths, despite successes like Klarna and Revolut achieving deca-corn status. However, a strong counter-argument from numerous European founders and VCs, such as Suranga Chandratillake of Balderton Capital and Sarah Wernér of Husmus, emphasizes that such practices are a "fetishization of overwork" and detrimental to sustainable innovation, employee well-being, and talent retention, particularly among younger generations. They point to successful European firms like Spotify, SAP, and ASML, which thrived on innovation cultures rather than overwork, and highlight negative precedents like Revolut's past cultural challenges and the regulatory pushback faced by Uber and Meta in Europe. The predominant view among these dissenters is that Europe's primary need is not "hustle-porn" but rather "more aggressive funding," citing Atomico's 2024 report indicating European tech startups missed out on nearly $375 billion in growth-stage funding since 2015, with many founders seeking capital in the U.S. The general sentiment surrounding this debate is mildly negative and cautious, reflecting concerns over the potential downsides of adopting such work cultures.

Key Decisions for Investors

• Investors should critically assess the $375 billion growth-stage funding deficit in European tech, as identified by Atomico, viewing increased capital deployment towards innovative, well-resourced startups as a more viable path to competitiveness than intensified labor hours.
• Evaluate target European startups based on their ability to foster sustainable innovation and strong company cultures that attract and retain talent, rather than relying on '996' models, which face significant employee resistance, potential regulatory challenges, and may indicate under-resourcing.
• Monitor the cultural and regulatory compatibility of portfolio companies within Europe, as strategies involving extreme work hours, akin to those seen at some U.S. (e.g., Uber, Meta historically) and Chinese firms (e.g., Alibaba), could lead to higher operational friction, increased talent churn, and brand damage, contrasting with the successful, sustainable models of companies like Spotify and SAP.