
Ask HN: How would a foreign startup raise funds in US? - nubela
How can I get around doing this? I am a startup from Singapore with the intent on focusing on the US market, a rational move given that our local market is way too small. Anyone with an experience on this subject matter? Thanks!
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patio11
1) Get traction.

2) Pitch your startup to investors which have previously invested in companies
based in Singapore. 500Startups springs to mind. Talk to the local hometown
heroes in Singapore who have achieved funding for recommendations on other
investors.

Traction excuses virtually everything else. Not technically impressive?
Doesn't matter, had traction. Not based in Silicon Valley? Doesn't matter, had
traction. No business model? Doesn't matter, had traction... asterix. Market
not obviously a billion dollar opportunity? Doesn't matter, had traction.

"Traction" can be sort of vague. You want to have a user adoption graph. You
want that graph to be growing, ideally with growth accelerating. Ideally you
want "use" to be less a measure of "signed up once" and more an ongoing thing,
preferably, an ongoing thing that your users would be _severely discomfited_
if they lost. You want to have some acquisition channel, ideally proved in
microscale, such that adding money explodes it. Ideally, you have a business
model, also proved in microscale.

If you have a (channel proved in microscale and revenue) or (a whole lot of
users) or, ideally, both of those, at least some investors won't care if
you're on the dark side of the moon. If you don't have these, you could
probably slice and dice your numbers such that you could _appear_ to have
them, but honestly just going out and _getting_ the numbers is probably a
better idea.

~~~
loceng
DM;HT - I like this.

One thing to note, all of those things will matter when it comes time to
determining valuation and risk-level of you/your team, and potentially if
you'll be a fit for the investment firm. I do agree if you have a product and
traction that it will be easier to find money, and you'll likely find money
from somewhere - though the terms offered will be based on the overall
package.

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tzury
Given the fact you are from Singapore makes it very easy for you.

See, many of those American investors you are hving in nind (VC's, Angles,
etc.) are holding tones of money in Singapore for tax engineering reasons (or
even better, white hacking the IRA).

Hence, there are plenty of Singaporean businessmen and women who manages this
money for them and have great relationships with them.

Getting traction in Singapore shall be the only worry of yours, once you got
that right, and local key people are aware of your success, offers will fly
by.

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nubela
And yes, we do intend to move operations to the states too, so we are not
looking to get the funded and bring it offshores, but instead stay and build
an american business.

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taligent
As an Australian I always find it bizarre this desire to goto the US when so
much untapped opportunity exists in the region. Indonesia (240m), China
(1344m), Japan (127m), Australia (22m) . All of which have have very little
competition in so many areas.

I know there is a lot more money in the US but without any connections the
only way you're going to get anywhere is by having a proven product. So why
not exploit advantages closer to home.

~~~
jacques_chester
As a fellow Australian, I think you've oversimplified.

1\. America is a better fit for Australians. We ostensibly speak the same
language; thanks to cultural exports we are highly familiar with American
popular culture and domestic affairs.

2\. There are 15 Americans for every Australian.

3\. America has a gigantic middle class. Only mainland Europe is its rival.

4\. It's easier to start and run a startup business in the USA than it is in
Australia. Capital is much easier to come by, regulations are better suited to
startups and you're not a pariah if you fail.

Comparing your list:

Indonesia and China don't speak English, have highly distinctive cultures from
Australia and each other, neither has a middle class that's bigger than the
USA's, capital is scarce unless you are politically connected, regulations
tend to be based on personal schmoozing rather than impersonal rule of law and
they are not tilted to favour small startups.

Right now, if you speak English and you want to launch an internet business,
the USA is by far and away the most advantageous country to do it in.

~~~
c1oder
If you want to launch mobile internet business, there is lots of opportunities
in developing countries.

Quess what country leads mobile banking? It's Kenya. Something like 60% of
Kenyans have made mobile money transfer. Money transfer via mobile phones has
expanded to 16 percent of the total population in sub-Saharan Africa in just
few years. Most of the third world people will never get landlines for the
last mile, they just skip the whole step and turn wireless.

Mobile business in developing countries is just going crazy. Threre has been
huge revolution in just few years and it's currently ongoing. I predict that
cheap below $100 smartphones will turn the life of hunreads of millions people
around in less than five years. They have less money, but they already use
mobile phones more innovatively than we do.

The main difference in comparision to developing countries seems to be that
mobile internet will provide much bigger productivity boost for developing
countries than it will do for us. New iPhone app in U.S is nice but it will
not turn your life prospects around. Lacking infrastructure (like roads that
work in rain season) makes the ability to use mobile Internet more important.

------
taligent
Other tips:

1) Get on Angelist and try and get some followers.

2) Go on TheFunded to learn more about the process.

