I'm not saying taxes don't play, I'm saying startups don't pay taxes because they make losses...so the tax rate doesn't affect startups. 50% tax ? Corporate tax rate in USA = 36% in France = 33.33% VC question = lower valuations in France; when investment markets become inflated (US) the key to making a return is buying low (France). Return is also about opportunity cost. Firing someone : I fired 7 people, some paper work, no court cases. Yes there are/can be court cases, but they mostly end in some small (1 month salary) arbitrage. If you're not a jerk about it, things usually work out. Also, remember French legal system is MUCH less costly than the US's. "You would think they would have changed something by now." -- This I can only agree with but I think it also applies to the US.