Hello,
I'm in the process of starting a startup, but I'm outside the US. Does it make sense to go through ycombinator.com or should I choose some other entity? I'm not sure if I want to be incorporated in the US.
Ask HN: Startup outside the US
1–10 of 28 posts
Re: Ask HN: Startup outside the US
#2There are a number of good programmes in many countries, from the usual suspects (London, Stockholm etc), to places that could surprise you (take a look at Bulgaria, for example).
Re: Ask HN: Startup outside the US
#3If you can be selected to YC, it almost definitely makes sense. The important question is, will you be able to go through it whether than it makes sense or not.
Re: Ask HN: Startup outside the US
#4Growing a business takes money. Silicon Valley is (for now) where the most money is. It makes sense from that perspective.
Good luck with your venture:)
Re: Ask HN: Startup outside the US
#5You need to decide for yourself if the hassle in incorporating in the US is worth it and also if there are other reasons for doing so.
Like you, I am based outside of the US. I'm currently in the UK and yet, I am incorporating in the US.
The five reasons for this are :-
1) 99% of my customers are there.
2) 100% of my vendors are there.
3) Potential investors are there.
4) 99% of my financial transactions are in dollars.
5) My Bank is in the US and no currency conversions eroding profits.
Of course, some will say why don't I go to London and seek out investment? I have looked into this:
1) The mindset of a UK investor is vastly different than that of a US investor.
2) They sum of monies for potential investment is greater for a US investor and so is the level of risk. The sum of equity is greater for the UK investor.
3) The US investor has many more connections than the UK investor.
4) The US investor has made many more bets than the UK investor and therefore has much better advice going forward.
I could go on... But there is 0% chance that I will be starting up in the UK.
Here's what I have found so far:
US | YC - $120k in return for 7% of the company's equity.
London | Bethnal Green Ventures - £15,000 in exchange for 6%.
London | Founders Factory - £30k for around 7%.
London | IGNITE 100 - £17,000 in return for 8%.
London | Oxygen Accelerator - £20,000 for 8%.
There's probably more, but I doubt you'll get to YC levels of funding and influence in London.
If someone knows where I could get a better deal on funding, equity and terms. I'd love to know!
What I am doing, is bootstrapping until I'm ready to onboard an investor.
I can't really offer you advise, as I don't know your full situation. But hopefully what I have found offers some insight!
Re: Ask HN: Startup outside the US
#6Apply first. You don't have a decision to make until you've been accepted.
Re: Ask HN: Startup outside the US
#7You need to decide for yourself if the hassle in incorporating in the US is worth it and also if there are other reasons for doing so. Like you, I am based outside of the US. I'm currently in the UK and yet, I am incorporating in the US. The five reasons for this are :- 1) 99% of my customers are there. 2) 100% of my vendors are there. 3) Potential investors are there. 4) 99% of my financial transactions are in dolla…
Nit pick:Bethnal Green Ventures is £20,000.
Re: Ask HN: Startup outside the US
#8You need to decide for yourself if the hassle in incorporating in the US is worth it and also if there are other reasons for doing so. Like you, I am based outside of the US. I'm currently in the UK and yet, I am incorporating in the US. The five reasons for this are :- 1) 99% of my customers are there. 2) 100% of my vendors are there. 3) Potential investors are there. 4) 99% of my financial transactions are in dolla…
Nice summary. As a German running a company in the UK, I'm also thinking about a US based corp using Atlas from Stripe.
May I ask in which sector you're working, goods or services?
How do you feel about the hassle that comes with an US based corp compared to the ease of a UK one?
Re: Ask HN: Startup outside the US
#9We are outside the US, but incorporated in Delaware, without even going to the US. We did that to keep our options open in case of raising, but we are slowly becoming more and more against raising. Anyways, it was cheap enough (~$700) and now with Stripe Atlas its even easier/cheaper.
It really depends on your idea, where your customers are and the way you want to execute. In our case we were lucky enough to have had some government grants from various countries, gone through some accelerators and now we are trying to organically grow.
Good luck!
Re: Ask HN: Startup outside the US
#10You need to decide for yourself if the hassle in incorporating in the US is worth it and also if there are other reasons for doing so. Like you, I am based outside of the US. I'm currently in the UK and yet, I am incorporating in the US. The five reasons for this are :- 1) 99% of my customers are there. 2) 100% of my vendors are there. 3) Potential investors are there. 4) 99% of my financial transactions are in dolla…
>If someone knows where I could get a better deal on funding, equity and terms. I'd love to know!
Not sure what equity they typically take but two other options are http://www.forwardpartners.com/ and http://www.ec1capital.com/
Edit: there's also http://seedcamp.com/ (€75K for 7%)
Edit 2: if you have some UK based Angels in your network you're thinking of approaching for investment, SEIS might help get them involved (which you'd lose if you incorporated in the US).