How to raise US investor money for a startup based in Europe

(Andrew Chen) #1

Continuing the discussion from Ask me anything!:

nice to meet you. European startups raise money out here all the time. I think it’s no big problem. However, it’s not like they are handing out checks at SFO. Instead, think of the SF Bay Area market as much more efficient, dynamic, and big. So if you want to attract investment, you need to make so much progress and have such great traction that you compare favorably to startups based out here.

If it’s just an idea or if there’s just meh traction, then the question is, why invest in a startup 1000s of miles away instead of investing in a local startup at the same stage? So you really have to have great numbers and traction to differentiate.

(baris) #2

agree w @andrewchen. VC is a fairly local business, especially in early-stages as VCs tend to get involved hands-on at those stages.

you have two options I think:

  1. raise seed in EU. build traction in EU, and ramp up traction in US. move to US. raise post-seed or A in US.

  2. move to US. build traction in US. raise post-seed or A in US.

here’s a summary of a talk I gave few months ago in Poland on this topic: