European startups resist the Chinese "996" culture

A heated discussion on LinkedIn has shaken the European startup community. Some venture capitalists urged founders to adopt the Chinese "996" work culture—from 9 am to 9 pm, six days a week—to increase global market competitiveness. However, most entrepreneurs met the idea with extreme criticism, according to the publication CNBC.

The "996" culture has long prevailed in China and is practiced by tech giants such as Alibaba and TikTok. However, in recent years it has become the subject of harsh criticism, and in Europe it even scares off candidates from interviews or employment.

Sebastian Becker, partner at a Swiss VC firm RedalpineHe supported the calls of the new German Chancellor Friedrich Merz to review labor laws, but emphasized: "40 hours a week is not enough. In Silicon Valley, 60-70 hours is common practice. If we are constantly 'overworked', we will lose."

Partner Index Ventures Martin Migno added that "996" originated in China, but has imperceptibly become the standard for many startups worldwide. The reason is the widespread belief that Europe lags behind the US and China, where tech giants are created.

However, European entrepreneurs themselves see more myth than real efficiency in "996".

"It's more of a fetishization of excessive work than of smart work," explains the venture partner. Balderton Capital Suranga Chandratilleke. — "People really work hard in California, but there is also time for rest."

Nina Mohanty, founder Bloom Money, citing the example of Revolut, where the "996" approach resulted in high staff turnover and even problems obtaining a banking license.

A similar opinion is held by Noa Hamalla from Don't Quit Ventures"Spotify, SAP, or ASML became successful thanks to a culture of sustainable innovation, not burning people out."

The younger generation is even less prepared for the toxic hustle culture. "Overworking today is a productivity crisis tomorrow," notes the co-founder. Husmus Sarah Werner: "Personally, I even want my competitors to work on the 996 scheme. It will only make it easier to find talented people when they burn out."

Jas Semple-Steward, founder of the app Luna, is convinced that 996 will only scare young professionals away from European companies.

Instead of increasing working hours, founders demand something else from investors – greater access to capital.

"With the right level of funding, our startups can work intensively without burnout," says Werner. "If a team of 10 people burns out trying to catch up with a US VC with 50 people or a Chinese startup with state support, the problem isn't endurance, but capitalization."

According to the report Atomico's State of European Tech 2024Since 2015, European startups have lost about $375 billion in potential investments, and every second company is forced to seek funding in the United States.