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4 reasons to consider a Silicon Valley investment

[fa icon="calendar"] Feb 1, 2018 3:40:48 PM / by Jakob Soderberg

Jakob Soderberg

This blog post gives you at least 4 reasons to consider a Silicon Valley investment. Especially if you are a Danish tech startup with global ambitions. 

  • Huge concentration of potential investors
  • 5x investment size (DKK = USD)
  • Vertical & horizontal knowledge
  • “venture capital”

Many Danish companies have had success with US investors on board (Tradeshift, NordSense, The Eye Tribe, Labster, just to mention a few...) 

 

Huge concentration of potential investors

In Silicon Valley you’ll find a plethora of investors. The amount of investors alone makes Silicon Valley a very interesting place to raise money. Often different investors will “compete” for the right investment. Whether you are looking for early stage angel funding or later stage VC or Corporate Venture funding the concentration of potential investors is incredible.

In Bay Area alone there are more than 3.500 investors (an area the size of Funen/Fyn)

 

Investment size

The amount invested in a company compared to equity is typically much higher here than in other countries. Here at the SCALEit HQ, we have experienced more than once that Danish companies who were offered a Denmark-based investment have had the same amount offered in Silicon Valley - just in USD .

For the same amount of equity!

(If you are "just" looking for adapting the Silicon Valley Mindset - check this blog post)

 

Vertical & Horizontal Knowledge

The investors in Silicon Valley have a network that is second to none!

No matter who invests in your company out of Silicon Valley they will give you access to a very wide network of specialists within very different areas.

Investors in Silicon Valley knows what it takes to scale a business. Most of them have done it before, many times. And they all have access to experts and specialists within every field imaginable.

From growth hacking, machine learning, artificial intelligence, block chain and what not, you fill find access to a network of knowledge that is beyond comparison.

Sand Hill Road - biggest concentration of venture capital in the world

Venture Capital in its essence

The true meaning of venture capital comes in play in Silicon Valley.

Venture: “a risky or daring journey or undertaking”.

Silicon Valley knows that there is no such thing as a sure bet. The level of risk taking is probably higher here than anywhere also because the competition is so fierce. The FOMO* effect should not be underestimated.

*Fear of missing out

Also we rarely (a.k.a never!) see investors insist on 5 year business plans before making an investment.

 

Bonus reason:

Investors in Silicon Valley are always looking to create solutions and services that are applicable all over the world. They have a global mindset to every aspect of their investments. And they have been practicing this field more than anywhere else in the world.

Are you looking for a US investment? 

Apply for our SCALEit Bootcamp for investment ready Danish companies here

Looking for a Silicon Valley investment?

However, there are also some things to consider before seeking an investment from Silicon Valley - and a few of these elements are described in this blog post. 

Topics: Investors, startup scaleit

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