Why European Startups Struggle in San Francisco (and How to Fix It)
When I encounter teams from Europe that are visiting the Bay Area, there are some common patterns which will deter most investors based here in San Francisco.
1. No US Entity
If you don’t have a Delaware C corp or you’re waiting until the next round to convert to a Delaware entity, most seed investors won’t be interested. The sooner you have a US parent company, the better.
2. Not focused on US Customers
Even if you’re growing fast, most US investors will want to see you focus on US customers. This is based on the belief that it is much easier to sell new technology in the USA versus Europe and other locations.
3. Small Market
You have to be working on a big problem, ideally with a big, bold idea to solve it. If you’re working on a market under $5B, that will be a blocker for most San Francisco investors.
Best of luck out there.
Sterling Road invests in idea stage and pre-seed B2B startups based in the US, Canada and UK.
