Musk's 'Wow' Puts €30,000 German Notary Reading Fee in Spotlight

Elon Musk had a single-word reaction to the biggest startup controversy in Europe this week: “Wow.” The comment came after Stripe chief Patrick Collison recounted how a German entrepreneur paid €30,000 to a notary to have an investment contract spanning 90 pages read out loud. The ceremony was mandatory under German legislation.

Collison inquired of the founder if the tales of German startup red tape are overblown. The founder replied that they are actually downplayed. The founder’s initial venture absorbed the expense and wasted the day. A subsequent company was set up in another jurisdiction.

How a German Notary Fee Can Amount to €30,000

The regulation is genuine, and Collison’s story references Section 13 of the Beurkundungsgesetz, the German notarization act. That law mandates that a notary reads the entire document out loud to all present.

Met a German founder this week and asked him if all the stories one reads about the challenges of startups in Germany are exaggerated. "No, they're understated." Proceeded to describe spending a full day having a 90-page investment contract read to him (mandatory under German…

— Patrick Collison (@patrickc) August 29, 2026

Afterwards, the parties must give their approval and sign manually. Startup funding rounds are affected because the typical German corporate entity, the GmbH, is unable to transfer equity or secure capital without a notarized document.

The fee is determined by the government, not the notary. Another statute, the GNotKG, links the cost to the transaction's value. A larger funding round leads to a larger invoice. The duration of the reading session is irrelevant.

That calculation has already received judicial approval, as venture attorney Wolfgang Weitnauer noted a decision from the Higher Regional Court of Karlsruhe regarding a specific German financing round.

Investors injected roughly €7 million into a business worth €21 million prior to the transaction. Exit provisions in the agreement also contributed to the document's assessed value.

Consequently, the notary valued the deal at approximately €35 million. The reading portion alone came to €63,110.85. The total notary invoice was around €100,000. The court confirmed each euro.

Crypto entrepreneurs might recognize the scenario, given that Germany holds the most licenses in the EU under the Markets in Crypto-Assets (MiCA) framework.

Nevertheless, German crypto startups are departing for more accommodating locations. Smaller companies claim that MiCA compliance expenses exceed the advantages of the single market.

Founders Join the Discussion as EU Drafts a New Corporate Form

Musk’s single-word response served as the most powerful amplifier. But the starkest contrast was provided by investors. Y Combinator co-founder Paul Graham responded that US investors finalize deals using the accelerator’s standard SAFE, which stands for simple agreement for future equity, after verifying only the names and figures.

Whereas in the US we can safely invest on a safe sent via the YC system without even looking at any part except the names and numbers, because we know the text will be the identical standard text.

— Paul Graham (@paulg) August 29, 2026

There is no public reading requirement and no state-mandated fee schedule.

“Our (Lieferando) contract was even longer, and the reading went on through the night, in German, mind you . I think it cost at least €200,000. The notary even stopped reading when I went to the bathroom. It was good fun, though,” added Just Eat Takeaway founder Jitse Groen.

The amount he cited is an approximation, not a verified bill.

Nonetheless, the difficulty appears not confined to Germany. Italian entrepreneur Stefano recounted a seed round that almost failed because notaries from Italy and Belgium disputed over a translated power of attorney. That dispute culminated in a €21,000 bill and a requirement for physical signatures.

Sharing our own horror story:

In December we’ve closed our Seed round with a UK lead investor. Since our company was incorporated in Italy and participated by a Belgium fund we had to translate a PoA in 3 languages and almost lost the deal because the Italian and Belgium notary…

— Stefano (@nerder_) August 29, 2026

However, Brussels is already working on a solution. In March, the European Commission put forward EU Inc., a voluntary EU-wide corporate structure that claims to allow complete digital incorporation within 48 hours.

A single provision has become the contentious point. Article 14 of the proposal requires that company charters undergo preventive administrative, judicial, or notarial oversight. Opponents interpret that final term as an opening for notary interest groups to re-enter.

Collison is not merely commenting, as five days before his tweet he established the Rhine Group together with former European Central Bank President Mario Draghi.

An announcement: Under the leadership of Mario Draghi and @patrickc we have set up the Rhine Group: policymakers, economists, entrepreneurs and business people pushing European reforms and the Draghi agenda. https://t.co/ZtoW7Rb173

— Luis Garicano 🇪🇺🇺🇦 (@lugaricano) August 24, 2026

The group of 55 participants aims to convert Draghi’s 2024 competitiveness report into actionable reforms, and it will gather for its inaugural meeting in late September.

The outcome of the EU Inc. negotiations regarding notarial oversight will determine whether Europe’s forthcoming corporate vehicle eliminates the reading ceremony or merely renames it.