Tech Rundown: Berlin the new Silicon Valley?

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Here’s today tech rundown — everything you need to know from the world of tech in 3 minutes!

In today’s email:

• Germany shakes up startup ecosystem

• AI for fashion design raises $150m

• Read any webpage in 60 seconds

The Lead Story

Germany has greenlit sweeping reforms to its startup ecosystem, set to take effect next year. These reforms dive deep into how startups do stock deals, get listed, and handle taxes.

The real star of the show? Employee stock ownership plans (ESOPs). Starting in 2024, when startup workers get stock options, they won't get hit with taxes until they sell them – a key incentive for wooing talent.

Moreover, the eligibility criteria for ESOPs will be expanded, benefiting businesses with up to 1,000 employees and €100 million in annual revenue. Companies will also be able to list with dual class shares, a popular tactic for founders looking to retain control.

It's Germany’s answer to keeping local tech talent from jumping ship to the US. While not perfect it’s a step in the right direction, as the European powerhouse has been notorious for its onerous taxation.

And it’s not only the US — there is a tacit battle for high calibre talent amongst neighbours, especially in AI.

Germany is home to the recently-funded Aleph Alpha ($500m round earlier this month), while bordering France has their own AI standout in Mistral (looking to raise $300m).

It took awhile, but it seems Europe is finally inching towards being competitive on the global startup stage.

More Tech News

• Tesla Troubles: Judge in Florida claims “reasonable evidence” Elon Musk knew about defective autopilot and did little to mitigate (more)

• Feelings the blues: Smartphone maker Nothing attempts to give Android users iMessage (blue) bubbles; results in security mess (more)

• Delivery Dodge: Report shows underage children are working as riders for delivery apps in the UK (more)

• Bing Bust: Despite adding several new AI features, Bing actually saw its share of search drop from 7.4% to 6.9% over the last year (more)

• OpenAI Merger: OpenAI board approached competitor Anthropic to enquire about a merger during recent CEO saga; Anthropic declined (more)

Startup Fundraising

• Influence is building a platform for venture investing. Raised a $21m seed round (more)

• Urbanic uses AI to generate fashion designs and improve supply chains. Raised $150m (more)

• Swytch provides cyclists with a conversion kit to change their bike into an e-bike. Raised $4m (more)

• Shekel Mobility is a YC-backed, B2B marketplace for auto dealers in Africa. Raised $7m (more)

• Glencoco has created a marketplace to hire sales & business development reps. Raised $3m (more)

Helpful Sites

• House of Pitch: An easy way to pitch to investors, others

• Read Pilot: Read any webpage in 60 seconds

• Pitch: Create beautiful presentations near-instantly

Daily Data

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