Post Written by Vasily Alekseenko

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.

Subscribe to Rare Founders' for a weekly newsletter of handpicked startup events for founders and investors in London 📩 = https://rarefounders-newsletter.beehiiv.com/