German law makes the "out of the garage + Angel investor" start-up culture impossible. The only possible way is to make money AND start out with a huge amount of cash. I can't speak for other Euro countries.
If you don't want to be a cynic: German law is optimized for protecting the public from investment scams---which makes it hard for startups that aren't investment scams but become victims of false positive identification by german law as possible investment scams.
There is now a mini-GmbH, essentially a type of Ltd. that can only handle a limited (pun not intended) amount of assets, but does not require you to have enough assets to pay back the debts.
Then there are GbR, etc, a lot of nice incorporation types, but these, while effective for a normal company, are not useful for a silicon-valley type of company, as the silicon valley relies on an investment bubble - and a GbR and similar place the liability completely with the owners of the company.
Then there are consumer cooperatives and so on, but while these, again, are useful for the normal economy, you can’t use them to make profit by scamming people (as they are effectively profit-less).