Is it worthwhile for a European start-up (past seed, not yet to scale) to seek funding from US-based VC?
One says "ventures funds only invest in the country they are based-in".
To what extent do you think this is true?
What are the main factors supporting or at the contrary proving it wrong(e.g. physical proximity, legal aspects, $/€ currency problem, cultural gap...)?
What could possibly bridge gap?
Thx!
Sure it is.
Your largest pool of available capital targeted at this stage of development is going to be in US. That being said, you probably have a few extra hurdles based upon the geographic distance. Be prepared for the questions about whether you would move your HQ to the US and what your market strategy for penetrating the US market is going to be.
There are some groups that just won’t invest outside of the US for that stage of company, but that is a fairly easy question to get out of the way early. Any type of “warm” referral will go a long way in helping the potential US group get comfortable with their diligence process on the people behind the venture (i.e. You).
Good luck.
Phil
Your largest pool of available capital targeted at this stage of development is going to be in US. That being said, you probably have a few extra hurdles based upon the geographic distance. Be prepared for the questions about whether you would move your HQ to the US and what your market strategy for penetrating the US market is going to be.
There are some groups that just won’t invest outside of the US for that stage of company, but that is a fairly easy question to get out of the way early. Any type of “warm” referral will go a long way in helping the potential US group get comfortable with their diligence process on the people behind the venture (i.e. You).
Good luck.
Phil
