Berlin-based SaaS company generating €3 million in annual revenue receives two term sheets in the same week. The first, from a European VC, offers €2 million at a €12 million valuation. The second, from a Silicon Valley firm, proposes $8 million at a $40 million valuation—more than triple the capital at more than triple the company value.
This isn’t an anomaly. This is the valuation gap that drives thousands of international founders to pursue US venture capital each year.
The numbers tell a compelling story. In 2024, US venture capital firms deployed over $238 billion across 15,000+ deals, representing more than 50% of global venture investment according to PitchBook data. American VCs aren’t just writing bigger checks—they’re offering higher valuations, more favorable terms, and access to the world’s largest consumer and enterprise markets. For international founders with ambitious growth plans, tapping into US venture capital isn’t just an option—it’s often the fastest path to building a globally dominant company.
But securing US venture capital as an international founder requires navigating a complex landscape of entity structures, legal requirements, investor expectations, and operational realities that differ dramatically from other markets. The path from first conversation to signed term sheet involves more than just a compelling pitch deck—it demands proper US entity structure, clean financial records, market presence, and operational credibility that American investors require before writing checks.
“International founders often underestimate the preparation required to successfully raise from US VCs,” explains Joanne Farquharson, President & CEO of Foothold America. “American investors have specific expectations about entity structure, financial reporting, market approach, and operational setup. Founders who understand and address these requirements before approaching VCs dramatically increase their success rates and secure better terms.”
This comprehensive guide reveals exactly what international founders need to know about accessing US venture capital—from entity structure requirements to investor expectations, fundraising timelines to common pitfalls. Whether you’re exploring US VC for the first time or preparing for your Series A, understanding these fundamentals positions you for fundraising success.
Why US Venture Capital Matters for International Founders
The decision to pursue US venture capital represents more than just accessing larger funding rounds. It’s a strategic choice that affects everything from company valuation to growth trajectory, market positioning to eventual exit opportunities.
The Valuation Premium
US venture capital firms consistently offer higher valuations than investors in other markets, even for comparable companies with similar metrics. Research from Crunchbase shows that US-based startups receive valuations 40-60% higher than European counterparts at similar revenue and growth stages.
This valuation premium stems from several factors. American VCs operate in the world’s largest venture ecosystem with abundant capital chasing limited high-quality deals. They evaluate companies based on potential US market opportunity rather than just current geography. They’re comfortable with aggressive growth strategies that prioritize market capture over near-term profitability. And they base valuations on comparable US companies rather than more conservative international benchmarks.
For international founders, this valuation premium translates into raising more capital while giving up less equity—preserving founder ownership through multiple funding rounds and creating significantly higher paper valuations that attract top talent and facilitate strategic partnerships. Companies that successfully navigate US expansion often see their valuations multiply compared to purely international operations.
Access to Patient, Growth-Stage Capital
US venture capital firms manage substantially larger funds than most international investors, enabling them to write bigger checks and support companies through multiple funding rounds. According to the National Venture Capital Association, the median US venture fund size exceeded $150 million in 2024, with top-tier firms managing billions.
This capital depth means American VCs can lead your Series A, double down in your Series B, and continue supporting growth through Series C and beyond—providing funding continuity that eliminates the need to constantly find new investors as you scale. International founders working with fragmented investor bases often spend excessive time fundraising rather than building their businesses.
The importance of capital access becomes particularly apparent when scaling operations. Companies expanding across the United States must navigate multi-state compliance, hire employees in different locations, and manage complex operational requirements. Having well-capitalized investors who can support this growth trajectory proves essential.
Market Access and Operational Credibility
Raising from US venture capital firms signals market validation that opens doors with American customers, partners, and talent. Enterprise buyers view VC backing from recognized US firms as credibility indicators reducing perceived risk of working with international vendors. Top American talent considers VC-backed companies more stable and attractive than self-funded or internationally-backed alternatives. Strategic partners engage more readily with companies carrying endorsements from respected US investors.
Beyond perception, US VCs provide practical market access through their portfolio networks. Top-tier firms actively introduce founders to potential customers, facilitate partnership conversations, and leverage their networks for talent recruitment—creating value far beyond just capital deployment.
Strategic Guidance from Experienced Operators
Leading US venture capital firms staff their teams with former founders, operators, and executives who’ve successfully scaled companies through similar challenges. This operational expertise translates into strategic guidance on everything from go-to-market strategy to organizational scaling, pricing models to sales methodology.
International founders gain access to pattern recognition from investors who’ve seen hundreds of companies navigate similar growth stages. This experience proves invaluable for avoiding common pitfalls, making better strategic decisions, and accelerating growth timelines.
Understanding the US Venture Capital Landscape
Before approaching US investors, international founders must understand how America’s venture ecosystem operates, who the key players are, and what different investor types bring to the table.
The Venture Capital Hierarchy
US venture capital operates on a clear hierarchy based on fund size, track record, and network effects:
Top-Tier Firms: Sequoia Capital, Andreessen Horowitz, Benchmark, Accel, Greylock, Kleiner Perkins, and similar firms manage multi-billion dollar funds, lead high-profile deals, and command significant influence. These firms receive thousands of inbound pitches annually and typically invest in fewer than 1% of companies they evaluate. For international founders, accessing top-tier firms usually requires warm introductions from trusted sources within their networks.
Emerging/Mid-Tier Firms: Hundreds of established firms with strong track records, $100M-$500M funds, and sector-specific expertise. These firms represent realistic targets for international founders with strong metrics and US market traction. They offer significant capital ($3M-$15M typical check sizes), valuable networks, and operational support without the extreme selectivity of top-tier firms.
Seed-Stage Specialists: Firms focusing on early-stage investments ($500K-$3M), often with specific sector expertise or geographic focus. International founders frequently start their US VC journey with seed-stage specialists who appreciate international market validation and don’t require extensive US presence before investing.
Corporate VCs: Strategic investment arms of large corporations (Google Ventures, Salesforce Ventures, Intel Capital) offering capital plus potential strategic partnerships. These investors evaluate deals through both financial and strategic lenses, seeking companies that complement parent company objectives.
Geographic Considerations
While venture capital firms operate nationwide, certain regions concentrate specific investment activities:
Silicon Valley: Remains the global venture capital epicenter with the highest concentration of top-tier firms, particularly for technology companies. Over 40% of US venture capital deploys from Bay Area-based firms according to PitchBook. Companies establishing presence here should consider virtual office solutions to maintain professional addresses in premium locations.
New York City: Second-largest venture hub with particular strength in fintech, enterprise SaaS, media/content, and consumer brands. NYC-based VCs often bring valuable East Coast customer and partner networks. Understanding American business etiquette proves especially important when building relationships with East Coast investors.
Boston: Strong venture presence especially for life sciences, healthcare technology, robotics, and deep tech. Boston VCs often emphasize technical validation and scientific rigor. The city’s concentration of universities and research institutions creates unique networking opportunities.
Los Angeles: Growing venture scene with focus on consumer brands, entertainment technology, and e-commerce. LA VCs excel at consumer go-to-market strategies and entertainment industry connections.
Emerging Hubs: Austin, Seattle, Denver, and Miami host growing venture communities with particular sector focuses and potentially less competition for attention than traditional hubs. International founders sometimes find these markets more accessible for initial US entry.
For international founders, geographic targeting should align with your sector focus and where relevant customer concentration, talent pools, and investor expertise intersect. Many successful international companies establish multi-location presence to access different regional advantages.
Sector Specialization
Most successful venture firms develop deep sector expertise, focusing investments in 2-4 related areas where they understand market dynamics, customer needs, and competitive landscapes. International founders should target investors with demonstrated expertise in their specific sector rather than generalist firms lacking relevant pattern recognition.
Research prospective VCs’ portfolio companies, published insights, and partner backgrounds to ensure sector alignment before investing time in relationship building.
Entity Structure Requirements for US Venture Capital
US venture capital firms have strict requirements about company structure and jurisdiction. Understanding and implementing proper entity structures before fundraising proves critical to success.
Why Entity Structure Matters to US VCs
American venture capital firms structure investments to optimize for tax treatment, liquidity options, and portfolio management. They invest almost exclusively in US C-Corporations—specifically Delaware C-Corps—because this structure provides:
Clear, predictable legal framework under Delaware corporate law
Preferred stock structures protecting investor rights and preferences
Tax-efficient exit options including acquisitions and IPOs
Familiar governance models and shareholder protections
Standard documentation reducing legal friction and costs
US VCs will not invest in foreign entities, LLCs, or other structures regardless of how compelling your business might be. The entity structure requirement is absolute. Understanding the differences between corporate structures like C-Corps, S-Corps, and LLCs helps international founders appreciate why VCs insist on specific formations.
The Delaware C-Corporation Standard
Over 65% of Fortune 500 companies and more than 80% of US-based IPOs incorporate in Delaware for good reasons. Delaware’s Court of Chancery provides specialized business courts with sophisticated judges handling only corporate matters. Decades of case law create predictable legal outcomes. The state’s business-friendly governance statutes offer flexibility while protecting shareholder rights.
For venture-backed companies, Delaware incorporation is effectively mandatory. VCs expect it, lawyers specialize in it, and attempting to use alternative states creates friction that can derail fundraising.
Our Delaware incorporation guide provides comprehensive analysis of Delaware’s advantages for international companies and detailed comparison with alternative states.
Structuring International Operations
International founders raising US venture capital typically implement one of two structures:
Structure 1: US Parent Company (Preferred)
The Delaware C-Corp becomes the parent company owning all intellectual property and controlling global operations. International entities become subsidiaries of the US parent. Founders and employees hold equity in the Delaware C-Corp.
This structure provides clean capitalization tables, simplified investor rights, and straightforward exit paths. However, it requires migrating intellectual property to the US entity and may create international tax considerations requiring careful planning.
Structure 2: Parallel Structure (Bridge Solution)
International founders maintain their home country entity while establishing a Delaware C-Corp that will eventually become the parent through a “flip” transaction after raising capital. This approach allows founders to begin US fundraising while managing complex international restructuring processes.
The parallel structure creates additional legal complexity and costs but enables founders to start conversations with US VCs before completing full reorganization.
Implementing Proper Entity Structure
International founders should engage experienced US corporate attorneys specializing in venture-backed companies to implement appropriate structures. The typical process involves:
Delaware C-Corp Formation: Establishing the entity with proper initial capitalization and governance documents following Delaware incorporation standards
Founder Equity Allocation: Issuing founder shares with appropriate vesting schedules and 83(b) elections filed with the IRS
IP Assignment: Transferring or licensing intellectual property to the US entity with proper valuation and documentation
Employee/Advisor Equity: Implementing equity incentive plans for current and future team members using standard frameworks
Cap Table Cleanup: Ensuring clean, simple capitalization tables without unusual terms or structures that concern VCs. Tools like Carta or Pulley help manage equity professionally
Documentation: Preparing proper corporate records, board minutes, and compliance materials meeting VC due diligence standards
This implementation typically requires 4-8 weeks and costs $10,000-$25,000 in legal fees depending on complexity. While significant, this investment pales in comparison to fundraising implications of improper structure.
Our US entity setup services coordinate formation, compliance, and ongoing maintenance for international founders, ensuring proper structure from inception. We work with experienced venture capital attorneys to ensure your formation meets investor standards.
Financial Records and US GAAP Compliance
Beyond entity structure, US venture capital firms require financial records prepared under US GAAP (Generally Accepted Accounting Principles). International companies maintaining books under IFRS or other standards must implement US GAAP bookkeeping for their US entities.
VCs conduct financial due diligence before investing, examining revenue recognition practices, expense categorization, balance sheet accuracy, and cash flow management. Financial records that don’t comply with US GAAP create deal friction and reduce investor confidence.
International founders should implement proper US GAAP bookkeeping from their first transaction, ensuring clean financial records when fundraising begins. Attempting to remediate non-compliant books during due diligence delays deals and creates negative impressions.
What US VCs Look for in International Companies
Understanding venture capital investment criteria helps international founders position their companies effectively and address potential concerns proactively.
The Core Investment Criteria
Large, Growing Market Opportunity: VCs seek companies addressing massive markets ($1B+ total addressable market) with strong growth trajectories. International founders must articulate not just their current market but specifically how they’ll capture significant US market share.
Exceptional Team: Investors back founders, not just ideas. They evaluate technical expertise, domain knowledge, execution ability, and coachability. International founders should emphasize relevant experience, complementary co-founder skillsets, and demonstrated ability to attract top talent.
Strong Product-Market Fit: Evidence that customers genuinely want and will pay for your solution. This includes retention metrics, customer testimonials, organic growth, and expansion revenue from existing customers.
Defensible Competitive Advantages: Clear articulation of why your company will win against competitors—whether through technology, network effects, brand, go-to-market strategy, or other sustainable advantages.
Path to Significant Scale: Credible plan for reaching $100M+ in annual revenue within 5-7 years. VCs invest in companies with potential for venture-scale returns, not lifestyle businesses.
Capital Efficiency: While VCs expect to fund growth, they favor companies demonstrating reasonable unit economics and paths to profitability at scale rather than burning cash without clear ROI.
International Company Advantages
International founders often possess underappreciated advantages that can differentiate them in competitive fundraising environments:
Proven International Traction: Revenue and customers in other markets demonstrate product-market fit and de-risk early execution. European, Asian, or Australian revenue proves your solution works and customers pay for it. Companies successfully expanding from countries like Italy, ASEAN nations, or Australia often leverage this proven traction effectively.
Technical Talent: Access to strong technical talent in international markets at lower costs than US alternatives creates capital efficiency advantages. Development teams in Eastern Europe, Asia, or Latin America can extend venture capital runway significantly.
Different Market Perspective: International experience provides unique insights into customer needs, market dynamics, and competitive approaches that US-only founders lack. This global perspective often leads to more innovative solutions.
Operational Discipline: Companies scaling in capital-constrained international markets often develop stronger unit economics and operational rigor than US counterparts with abundant venture funding. This discipline attracts growth-stage investors seeking capital-efficient operations.
Addressing International Founder Concerns
US VCs evaluate certain factors more carefully with international founders:
US Market Commitment: Investors want confidence that founders are committed to winning in America, not just raising US capital for international expansion. Demonstrating this commitment often requires founder relocation to the US or establishing strong US leadership teams. Understanding US business culture and showing cultural adaptation signals serious market commitment.
Go-to-Market Execution: VCs question whether international founders understand American customer buying processes, sales cycles, and market dynamics. Strong US advisors, early customer traction, or experienced US team members address these concerns. Resources like Gartner for enterprise sales insights or Forrester for market research help demonstrate market understanding.
Regulatory and IP Considerations: Investors examine whether international operations create regulatory complexities, IP protection issues, or geopolitical risks affecting US market success. Proper IP protection strategies and clean international operations reduce these concerns.
Exit Path Clarity: VCs need confidence that international company structures enable standard exit paths through acquisition or IPO without legal complications or tax inefficiencies. Proper Delaware C-Corp structure and clean cap tables eliminate most exit concerns.
International founders who proactively address these concerns through proper entity structure, US market presence, strong teams, and clear go-to-market strategies eliminate friction in fundraising processes.
The Fundraising Process for International Founders
Understanding how US venture fundraising works helps international founders navigate the process efficiently and avoid costly mistakes.
Building Relationships Before You Need Capital
Successful US venture fundraising begins months before you’re ready to raise. Top VCs prefer investing in companies they’ve tracked over time rather than responding to immediate funding needs.
Starting the Conversation: Reach out to relevant VCs 6-12 months before planning to raise, sharing company updates and building relationships through:
Warm introductions from mutual connections (founders, investors, advisors) via platforms like LinkedIn
Industry conferences and events where VCs actively network—attending events like TechCrunch Disrupt, SaaStr Annual, or sector-specific conferences
Thought leadership content demonstrating expertise on platforms like Medium, Substack, or your company blog
Product demonstrations or customer stories showcasing traction and understanding of US market dynamics
Maintaining Momentum: Send quarterly updates to interested VCs tracking key metrics, customer wins, product milestones, and team developments. This consistent communication keeps you top-of-mind when timing aligns with their investment focus. Use email update tools or simple spreadsheets to manage your investor relationship pipeline systematically.
The Formal Fundraising Process
When you’re ready to formally raise capital, the typical process follows predictable stages:
Initial Outreach: Contact target investors through warm introductions when possible, sharing a concise teaser email with key traction metrics and a pitch deck. Request 30-minute introductory calls to assess mutual fit. Cold outreach through AngelList, LinkedIn, or direct email works for some founders but dramatically reduces response rates compared to warm introductions.
Initial Meetings: Present your pitch to interested partners, telling your company story, sharing traction data, and discussing market opportunity. Strong initial meetings lead to follow-up discussions with other firm partners. Prepare for questions about your US entity structure, market approach, competitive positioning, and capital requirements.
Due Diligence: VCs conduct detailed evaluation including customer reference calls, financial analysis, technical evaluation, competitive assessment, and legal review. Organized founders expedite due diligence through prepared data rooms with financial records, customer contracts, organizational documents, and intellectual property documentation. Your US GAAP-compliant financial statements become critical during this phase.
Partner Meetings: Promising opportunities advance to full partner meetings where the entire investment team evaluates the deal. Partners vote on whether to extend term sheets, with specific partners typically championing investments they’ll lead. Understanding American business culture and communication expectations proves valuable during these high-stakes presentations.
Term Sheet and Negotiation: Interested firms extend term sheets outlining investment amount, valuation, governance terms, and investor protections. Founders negotiate terms with legal counsel before selecting their preferred investor and signing the term sheet. The National Venture Capital Association publishes model documents that many VCs use as starting points.
Final Due Diligence and Closing: After term sheet signing, VCs complete comprehensive due diligence while lawyers draft definitive agreements. International founders should ensure their US employment compliance is properly structured, especially if planning to hire team members immediately after funding closes.
The entire process typically spans 3-6 months from initial outreach to closed funding, though international founders should expect timelines toward the longer end due to additional diligence requirements around entity structure, international operations, and cross-border considerations.
Creating Competitive Dynamics
The strongest fundraising outcomes result from competitive processes where multiple VCs compete for allocation. International founders should:
Target 20-30 relevant investors simultaneously rather than sequential conversations
Create urgency through compressed timelines once serious interest emerges
Leverage interest from top-tier firms to attract attention from others
Maintain process control by setting clear decision timelines
However, artificial urgency without genuine interest backfires. VCs see through manufactured processes, so competitive dynamics must reflect real investor excitement.
Common Mistakes International Founders Make (And How to Avoid Them)
Learning from others’ mistakes accelerates your fundraising success. Here are the most common pitfalls international founders face when pursuing US venture capital:
Mistake 1: Wrong Entity Structure
The Error: Founders approach US VCs before establishing Delaware C-Corp structure, assuming they can address entity requirements after generating investor interest.
Why It Fails: VCs won’t invest time in detailed evaluation knowing entity structure will require expensive, time-consuming reorganization. Entity structure is a prerequisite, not something to figure out later.
The Solution: Establish proper Delaware C-Corp structure before beginning fundraising conversations. Even if not ready to move all operations immediately, having the entity in place demonstrates commitment and enables productive conversations.
Mistake 2: Inadequate US Market Presence
The Error: International founders pitch US market opportunity without any American customers, team members, or operational presence, expecting VCs to fund market entry.
Why It Fails: VCs invest in companies demonstrating ability to win in the US market, not just ambitions to enter. Without evidence of US market understanding and execution capability, investors lack conviction.
The Solution: Establish initial US market traction before raising capital. This might include first US customers (even if small), US-based advisors with relevant expertise, or pilot programs demonstrating product-market fit. US VCs fund acceleration, not exploration.
Mistake 3: Founder Geographic Misalignment
The Error: Founders based entirely in international locations pitch US market domination without plans for founder relocation or strong US leadership.
Why It Fails: VCs question commitment to winning the US market when founders won’t relocate. Building strong US sales, marketing, and customer success requires on-ground presence and cultural understanding. Understanding American work culture and building teams that fit US expectations becomes nearly impossible from overseas.
The Solution: At minimum, demonstrate plans for founder relocation (even if not immediate) or hiring exceptional US leadership team members who can own market execution. Many successful international founders split time between locations during early expansion before full relocation. Consider using EOR services to hire US team members quickly while maintaining operational flexibility.
Mistake 4: Non-Compliant Financial Records
The Error: Maintaining financial records under home country accounting standards and attempting to “convert” to US GAAP during due diligence.
The Solution: Implement US GAAP bookkeeping from your first US transaction. Clean, compliant financial records accelerate due diligence and demonstrate operational competence.
Mistake 5: Unrealistic Valuation Expectations
The Error: Using international company valuations or outdated US market comparables to set valuation expectations disconnected from current market reality.
Why It Fails: VCs operate in efficient markets with strong valuation benchmarks tracked by platforms like PitchBook, Crunchbase, and internal firm data. Unrealistic expectations either prevent deals from closing or force founders to accept down rounds when reality sets in. Understanding current market dynamics proves essential.
The Solution: Research current market valuations for comparable US companies at similar stages using available databases and reports. Engage advisors who understand current market dynamics. Be prepared to justify your valuation with strong metrics and market opportunity rather than international comparables. Sites like AngelList and public funding announcements provide visibility into recent deal terms.
Preparing Your Company for US VC Success
Strategic preparation dramatically improves fundraising outcomes. International founders should focus on several key areas before beginning serious fundraising efforts.
First, ensure clean corporate structure with proper Delaware C-Corp formation, clean cap tables, appropriate founder vesting, and standard governance documents. Your entity formation should follow Delaware’s Court of Chancery standards that VCs expect.
Second, implement US GAAP financial records producing accurate monthly financial statements. VCs expect compliant bookkeeping systems from day one—attempting to remediate non-compliant books during due diligence delays deals and creates negative impressions.
Third, develop compelling traction metrics with quantified data around revenue growth, customer acquisition costs, lifetime value, retention rates, expansion revenue, and unit economics. Use platforms like ChartMogul or Baremetrics to track and present SaaS metrics professionally.
Fourth, generate early US market evidence through pilot programs, design partners, or initial revenue. Even small proof points demonstrating ability to win American customers significantly strengthen your fundraising position. Consider establishing initial US team presence to show market commitment.
Fifth, recruit respected US advisors providing both strategic guidance and network access to potential investors. Advisors with successful exits, deep sector expertise, or strong VC relationships can make warm introductions and validate your company to their networks.
Sixth, establish operational readiness including US banking relationships with institutions like Silicon Valley Bank, Mercury, or other venture-friendly banks. Engage experienced venture capital attorneys who specialize in representing startups through fundraising—general business lawyers lack the specific expertise fundraising requires.
Finally, create investor-ready materials including a compelling pitch deck (15-20 slides maximum), concise executive summary, organized financial data room, and lined-up customer references. Your pitch should follow proven frameworks—resources like Y Combinator’s startup library provide excellent guidance on effective pitch construction.
Companies that systematically address these preparation areas before fundraising consistently achieve better outcomes—higher valuations, more favorable terms, faster processes, and stronger investor relationships that support long-term success.
How Foothold America Supports VC-Backed International Companies
At Foothold America, we’ve supported hundreds of international founders through US expansion and venture fundraising processes. Our comprehensive services address the operational requirements VCs expect before and after investment.
Pre-Fundraising Support
Entity Formation and Structure: We coordinate Delaware C-Corp formation with appropriate initial capitalization, founder vesting, and governance documents that meet VC standards.
US GAAP Bookkeeping: Our bookkeeping service implements compliant financial recordkeeping from your first transaction, ensuring clean books for due diligence.
Initial Team Building: Through our Employer of Record service, international founders can hire US team members before establishing full entities, demonstrating market commitment to investors.
Post-Funding Operational Excellence
After successful fundraising, portfolio companies need operational infrastructure supporting rapid scaling:
Scalable HR and Payroll: Our PEO+ Cross-Border Support™ manages comprehensive HR, benefits, payroll, and compliance for growing teams across multiple US states.
Financial Management: As transaction volumes increase, our bookkeeping service scales seamlessly with tiered packages accommodating growth without requiring system changes or new vendor relationships.
Compliance Infrastructure: We maintain ongoing entity compliance, registered agent services, and state-level requirements across jurisdictions as portfolio companies expand.
Integrated Service Delivery: Having single partners managing bookkeeping, payroll, HR, and compliance creates operational efficiency that internal teams or multiple vendors cannot match.
“VC-backed companies operate under intense pressure to execute quickly and demonstrate rapid progress toward growth milestones,” explains Geanice Barganier, Vice President of People & Operations at Foothold America. “Our integrated services allow founding teams to focus entirely on product, customers, and growth while we handle operational complexity. Many of our most successful clients are international founders who raised US venture capital and needed partners who understood both VC expectations and international company dynamics.”
Ready to Begin Your US VC Journey?
Accessing US venture capital opens extraordinary opportunities for international founders with ambitious growth plans. Success requires proper preparation, strategic positioning, and operational foundations that meet American investor expectations.
Whether you’re exploring US fundraising for the first time or preparing for your next round, Foothold America provides the expertise and services international founders need to succeed in America’s venture ecosystem.
Contact our team today to discuss how we can support your US expansion and venture fundraising objectives. Our US expansion specialists understand the unique challenges international founders face and provide practical solutions that accelerate your path to success.
Frequently Asked Questions About US Venture Capital
Get answers to all your questions and take the first step towards a US business expansion.
The startup ecosystem features several tiers of investment firms worth targeting. Among top venture capital firms, Benchmark Capital, Sequoia Capital, and Andreessen Horowitz dominate san francisco and Silicon Valley. General Catalyst and New Enterprise Associates maintain additional offices across Boston and New York, investing across various sectors and stages of growth.
Founders Fund has made notable investments in technological advancement plays like SpaceX. Insight Partners focuses on growth-stage software, scaling successful companies to IPO. Index Ventures bridges European and American markets effectively for international founders. Lightspeed Venture Partners invests across various industries including enterprise, consumer, and biotech startups.
These venture capitalists differ from private equity firms by targeting earlier-stage, high-growth companies. Each investment firm operates an investment committee making investment decisions based on their investment strategy, which has evolved significantly in recent years as venture capital funding markets have matured.
Understanding the distinction matters for targeting the right capital. Venture capitalists invest in early-stage companies—often pre-revenue—accepting significant risk for outsized returns. A vc firm typically invests at seed through Series C, providing business development support and strategic guidance.
Private equity invests in mature, profitable companies with controlling stakes. The venture capital industry’s business model centers on portfolio construction: backing 20-40 companies expecting 1-2 to generate 10x+ returns funding the entire venture capital fund.
Vc funding from firms like those mentioned operates across various sectors—from financial services to biotech startups and consumer brands. The startup ecosystem requires patient capital through multiple rounds, which venture capital funding accommodates through 7-10 year horizons. International founders seeking rapid growth should target venture capitalists rather than private equity, which becomes relevant only after achieving significant scale.
Most vc firms develop deep sector expertise shaping their investment strategy. Benchmark Capital and Founders Fund typically lead early rounds in consumer internet and enterprise software. Lightspeed Venture Partners invests across various industries including financial services, with partners specializing in different domains.
General Catalyst and New Enterprise Associates write checks from $500K to $50M+, supporting companies through stages of growth. Insight Partners focuses on growth-stage software with proven traction—ideal for international founders with US market success.
Index Ventures brings European expertise while investing in American technology across enterprise and financial services. Their international perspective makes them receptive to international founders.
The venture capital fund structure influences sector focus. Some firms raise dedicated vehicles for biotech startups requiring longer timelines than software companies. Notable companies in firm portfolios provide pattern recognition for investment decisions. If a firm’s portfolio features successful companies in your sector, they understand relevant market dynamics.
In recent years, the venture capital industry has concentrated capital in AI, cybersecurity, and healthcare—each featuring specialized investors bringing operational expertise beyond capital.
The investment committee at any investment firm applies core criteria consistently—team, market size, differentiation, traction. However, venture capitalists assess international founders on additional factors influencing investment decisions.
First, they scrutinize US market commitment. Vc funding flows to companies demonstrating realistic paths to dominating American markets. Firms like New Enterprise Associates and General Catalyst look for evidence founders understand US customer buying processes and business development cycles.
Second, top venture capital firms require proper entity structure non-negotiably. Any venture capital fund’s investment strategy requires Delaware C-Corporations with US GAAP reporting. International companies without proper structure face immediate rejection regardless of business model strength.
Third, committees assess risk based on notable investments in international companies. Firms with international experience—like Index Ventures or Lightspeed Venture Partners with additional offices globally—bring pattern recognition reducing perceived risk.
The startup ecosystem recognizes international founders often demonstrate superior capital efficiency, having built successful companies in constrained markets before pursuing venture capital funding. This operational discipline appeals to investment committees evaluating various sectors.
Notable companies like Spotify, UiPath, and Canva prove international founders can build dominant businesses through US venture capital. These successes influence how venture capitalists evaluate international opportunities across various industries.
Physical presence in san francisco, Silicon Valley, or New York significantly impacts fundraising success, though importance has evolved in recent years as the venture capital industry adapted to distributed teams.
Benchmark Capital, Founders Fund, and Lightspeed Venture Partners maintain operations in san francisco where partners build relationships through repeated touchpoints. International founders without Bay Area presence miss organic relationship-building leading to warm introductions.
However, presence doesn’t require permanent relocation before raising capital. Successful approaches include hiring US-based business development leaders, founders splitting time between countries (1-2 weeks monthly during fundraising), and maintaining professional san francisco addresses.
General Catalyst, New Enterprise Associates, and Insight Partners maintain additional offices across US markets, supporting portfolio companies wherever they operate.
For various sectors, geographic importance varies. Enterprise software companies need East Coast presence for Fortune 500 buyers. Financial services technology benefits from New York proximity to banking concentration. Biotech startups gravitate toward Boston for research institutions.
The business model influences requirements. Consumer companies operate more flexibly than B2B companies requiring customer proximity.
While top venture capital firms increasingly invest in distributed teams, international founders establishing meaningful US presence before fundraising achieve better outcomes—higher valuations and stronger conviction. Technological advancement enabling remote work hasn’t eliminated relationship-building advantages of proximity to venture capital funding ecosystems in major hubs.
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