I know a tiny bit about this regarding the UK but no other country in Europe:
My mental shortcut has always been "The US never inherited debtor's prison." Historically in the UK at least, getting into a situation where your debts can't be honored was utterly ruinous (this has improved IIUC). In the US, there are strict upper bounds on how much sway creditors can have over you. One could imagine this would result in a chillier credit market when creditors have fewer protections, but ironically, this makes it easier to get credit in the US because creditors don't have another option. Interest on a successful venture is still the quickest path to making one's money grow, so even knowing the debtor could walk away and the worst that would happen is "bankruptcy followed by a judge telling you you get pennies on the dollar of your investment", people still put up the money.
The most obvious example of how failure to pay debt in the US isn't personally ruinous is probably that our current President has filed bankruptcy six times.
(Note: I am speaking broadly and about non-medical debt. Medical debt in the US is ruinous for several significant reasons. But that's generally a non-overlapping concern to most tech-company funding).
My mental shortcut has always been "The US never inherited debtor's prison." Historically in the UK at least, getting into a situation where your debts can't be honored was utterly ruinous (this has improved IIUC). In the US, there are strict upper bounds on how much sway creditors can have over you. One could imagine this would result in a chillier credit market when creditors have fewer protections, but ironically, this makes it easier to get credit in the US because creditors don't have another option. Interest on a successful venture is still the quickest path to making one's money grow, so even knowing the debtor could walk away and the worst that would happen is "bankruptcy followed by a judge telling you you get pennies on the dollar of your investment", people still put up the money.
The most obvious example of how failure to pay debt in the US isn't personally ruinous is probably that our current President has filed bankruptcy six times.
(Note: I am speaking broadly and about non-medical debt. Medical debt in the US is ruinous for several significant reasons. But that's generally a non-overlapping concern to most tech-company funding).