US fundraising : the ugly truth

+ weekly list of handpicked startup events for founders and investors in London

AuthorAuthor

Vasily Alekseenko & Marc Cohen
July 18, 2024

Aim High or Go Home: Truth About US Fundraising

Why bother

Why should you even care about raising in the US? Well, simply put, the market is just that much bigger. With 5.5 times the population of the UK and a GDP is about eight times greater, the opportunities are immense. Enterprise SaaS spending in the US is estimated to be about 15 times that of the UK.

Mastering the US market is critical for achieving the biggest outcomes, and having a US VC on board who understands this market can make all the difference.

Understanding US VCs

To understand what US VCs are looking for, I spent nearly a month in San Francisco, meeting with 38 different funds, some with tens of billions of dollars under management.

Here are the two key insights from those meetings.

Expectations and stereotypes: Ambition and Commitment

US VCs assess two main additional qualities in UK founders: Ambition and Commitment. While these qualities are essential for all founders, the stereotype is that UK founders are less ambitious than their US counterparts.

Ambition: Aim High or Go Home

  • Large Outcome Focus: You need to position yourself as aiming for large, venture scale outcomes, even if it means a higher risk of failure. US VCs much prefer this over a higher chance of a smaller outcome.

  • Self-Reflection for Founders: Ask yourself: Do you really want this? Would you be more comfortable with a smaller, lower risk, but still life-changing outcome? If so, the US market might not be for you.

Commitment: Dedication to the US Market

To impress US firms, you need to show commitment to the US market. This can take a number of forms:

  • Relocation: Founder or founders moving to the US.

  • Market Validation: Demonstrating demand by already having US clients..

  • Sales Infrastructure: Establishing or planning a US-targeted sales team.

  • Legal Adjustments: Being willing to switch to a Delaware topco if required.

  • In-Person Effort: Showing up in person to raise.

The underlying word here is Commitment. Your investor wants to know you are taking this seriously, not just giving it a try and planning to retreat quickly if things don’t go to plan. If you’re not committing to the US, why should they get involved? You are competing with a lot of US companies for investment with no tricky legalities or visibility issues. Why you? You have to shine.

Conclusion: Positioning for Success

To succeed in raising funds in the US, you need not only a great business but to demonstrate strong ambition and commitment to the US market. This will significantly enhance your chances. If you embrace these principles and prepare diligently, you will position yourself to stand out in the hypercompetitive US funding landscape.

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Written by the guest author, Marc Cohen, Partner at unbundled vc.

Want to hear more from Marc? Join us on the 30th of July (see the details below).

OPPORTUNITY OF THE YEAR🔥

Rare Founders

London’s Largest Demo Day - Apply to pitch now!

Calling all founders! 📢 Applications are now open to pitch at our biggest event yet. Showcase your startup to top investors.

Application deadline: 16 Aug 2024

RARE FOUNDERS EVENTS🔥

Rare Founders

Open mic pitching and Networking

This time, we are adding a bit of a twist to our open mic pitching and networking event. UK based VC + US based VC will join us to share the differences on what US investors look for in startups vs UK investors. This event is going to be super popular, so grab your ticket now.

In-person event

Blue Marlin Ibiza London, 45 Curtain Road, London, EC2A 3PT, UK

Tue 30 July, 18:00 - 23:00 BST

Rare Founders

Startup Run

Bi-weekly 5k running events for anyone in the startup ecosystem, followed by networking drinks in the nearby pub. Same time same, place.

In-person event

Green Park, London, W1J 9DZ, UK

Thu 25 July, 18:00 - 22:00 BST

OTHER LONDON EVENTS🌟

FounderFuel

Founders' House Summer BBQ 🥂☀️

This is the FounderFuel Summer BBQ, a gathering of founders and investors from our community and friends. There will have some drinks and snacks but please bring more for a fun time :)

In-person event

Kilburn Park area, London, UK

Fri 19 July, 18:30 - 21:00 BST

Rob, Rob, Pedro and Oliver

Tech Startups in the Pub - Relaxed Networking

My all time favorite startup gathering in London. Very chilled networking over a few pints. Everyone is welcomed!

In-person event

The Windmill, 27 Tabernacle St, London, EC2A 4DE, UK

Fri 19 July, 18:00 - 22:00 BST

Rise London

Rise Coffee Club

Join to connect with likeminded Fintech Investors and Fintech Founders. This is an agenda-free, networking event. Breakfast will be served.

In-person event

Rise London, 41 Luke Street, London, EC2A 4DP, UK

Tue 23 July, 08:30 - 10:00 BST

GoodTechVentures

Your Path to Product Market Fit and Finding Your Ideal Customers

Join us for this hands-on workshop on how to achieve and maintain Product Market Fit, the key to your startup success.

Online event

Tue 23 July, 10:30 - 12:30 BST

SeedLegals

Managing Disputes Across Your Startup's Ecosystem

Learn how to manage disputes across your startups ecosystem with PinqDR & Anthony Rose.

Online event

Wed 24 July, 12:30 - 13:30 BST

Scribe

Zero to One: Fundraising Masterclass & Founder Networking

​Join for this Founders-only event to learn tips on taking your business from zero to one in fundraising. Hear from start-ups in a panel discussion as they share their journey, followed by networking.

In-person event

71 Queen Victoria St, London, EC4V 4AY, UK

Thu 25 July, 18:00 - 21:00 BST

PARTNER OPPORTUNITIES🐣

shift

Fintech incubator program

Ignite is an exclusive incubator programme designed to transform disruptive fintech ideas into reality with financial support, expert guidance, and extensive industry networking.

Applications to join close on the 12th of August.

hotbed

hotbed summer

Not slowing down for summer? Our friends at Hotbed get it – as a founder, taking your foot off the gas just isn't an option. That's why they're kicking off Hotbed Summer, a #NoStringsAttached series of online and offline events which you can pop in and out as you please, absolutely free! Rub shoulders with seasoned founders and top-tier investors who'll share insider tips and tricks to help you raise.

Vasily Alekseenko
Founder
@ Rare Founders

Rare Founders - building the bridge between founders and investors via regular in-person and online events, meetups, conferences.

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