David, spot on! I've been working in the Valley with startups coming here from Spain, Italy, UK - all over Europe really - and the big reason they're here is the (lack of) funding to get an idea off the ground, and then the (lack of) ecosystem to help nurture, grow and develop from there. Even the vague initiatives of easy government loans to get going in places like Spain backfire because the few early stage VC's look at that money as a way to put in LESS themselves and have LESS dilution, instead of leveraging the heck out of it. That has happened to at least one Barcelona company I work with. Another, a SAAS company also from Barcelona, is very proud of their 20% EBITDA on a $3m revenue expectation, almost doubling from the prior year. But if you look deeper the real issue is that by not reinvesting the profits in hiring and sales they are missing the opportunity to seize a market by the scruff of the neck and make it theirs. In fact they need to take VC money to really press the pedal down. As you well know, profits in a rapidly growing SAAS business get deferred as you reinvest in gaining more new accounts, renewals etc. But there is no ecosystem or experience there to guide and mentor the Spanish founders in that thought process. And its hard to provide that guidance from here (the Valley) ... Urgh! So much potential ....