Are the US streets paved with gold for UK Tech Entrepreneurs?

Like all frustrated UK entrepreneurs, it’s easy to think that the streets are paved with gold in the US, just waiting for those plucky enough to go and get it. Tales of speedy deals and bulging chequebooks are enough to catch the attention of UK tech entrepreneurs frustrated with the lack of movement from angel/ European backed funds focussed on backing the next ‘low growth dead cert’ to the avoidance of anything remotely disruptive. If you’re cannibalising another business or have re-invented the wheel you’ll have the UK investment community beating a path to your door with a lack lustre offer, but if you’ve got something seriously sexy up your sleeve you’ll struggle to get arrested.

My company was lucky enough to have had over $1million investment from an exited UK tech entrepreneur and are now revenue positive, so when I joined the 12 strong Tech North trip to the US early October I had no idea what a good position I was in to be looking for funds for expansion, after previous efforts had been so arduous.

There was a mix of early start ups and businesses with multi-million turnover, with entrepreneurs ranging in age from 26 to early fifties. I had no idea when we started what an amazing experience it would turn out to be both from a professional and personal perspective.

Top 10 US Investment Tips for UK Entrepreneurs

1.     The British Consulate has a great set of resources to help businesses serious about working/doing work in the US.

2.     TechNorthHQ.com are the people to get you started on your journey ( if you’re from up north)

3.     Just because someone talks to you doesn’t mean they’re your friend. It’s relatively easy to get an audience in the US.

4.     Not getting a ‘No’ doesn’t mean it’s a ‘Yes’, don’t hang around on the off chance, keep on connecting.

5.     Shy Bairns get nowt – Don’t be afraid to ask for meetings, they’ll most likely say yes if you position it correctly, it’s not like the UK.

6.     There is a perception by US Angels that if you can’t get funding then you’re not investable, which is particularly untrue of disruptive tech in the UK .

7.     The investment community as a whole is very mature, Silicon Valley has 50 years’ experience in investment and Seattle has 30, unlike the UK.

8.     Give back - investors are looking for rounded individuals, it’s not all about the take.

9.     Take note- Silicon Valley is miiiillllleees away from San Francisco city centre.

10.  There are a whole host of incubators which welcome international candidates. The two week one by Black Blox (see the lovely Chad Kaul)  is probably one of the most viable if you’re looking for an intensive overseas experience.

11.  The Americans are more likely to do business with someone on the ground rather than someone who visits every few weeks.

12.  You’re unlikely to get US investment unless you’re based in the US.

13.  Average graduate development salaries in San Francisco is $120k, with free lunches, healthcare, etc. It’s exactly the same in Seattle but with a free Tesla! It makes the UK look like a very viable development offshoring facility – Take note UK plc!

14.  Seattle has much cheaper housing/ office costs than San Francisco and you’ll keep your staff longer as they’re more family oriented.

15.  Seattle has strong links with China, is only a 2 hour flight from San Francisco, has an abundance of graduates and SF investors are happy for you to be based there.

16.  The three cities in Seattle have impressive development plans for the area.

OK, so it’s 16 takeaways not 10, I could go on and on, but I think you need to get out there for yourself to have a look and see what’s appropriate for your business.

I’d recommend anyone to go and have an explore while you make your plans about your US expansion. We took in Dreamforce while we were out there (thanks to Leon Markham for the exclusive audience opp) . With 170K delegates it was an overwhelming experience. They even had U2 playing in a free concert as part of the conference.  Being part of the 1% club is highly valued out there, they’re really into giving back, but it was in stark contrast to the high levels of homelessness we witnessed.  There are so many parties you won’t have to pay for food or drink all week. But beware of free pouring of spirits or you could lose a morning to a hangover. There is no such thing as 25ml measures out there, more like a glass of whisky with a splash of coke.

TOP TIP – if you’re thinking of going to Dream Force, book your accommodation well in advance as the hotels sell out. I had to not only share airbnb accommodation, but share a bed with one of the UK delegates as we just couldn’t get anything! When we finally made it to Seattle and were just sharing a room it felt like a scene from ‘I’m a celeb’ as we leapt onto our own beds and revelled in having a clean bathroom. If you think that’s an unfortunate tale, one of the other delegates was sharing a house with complete strangers who rummaged through his belongings, requiring him to carry his valuables at all times!

Between Tech North and the Consulate (thanks to Helen Moore and her team and the delightful Samantha Evans) , they arranged a ton of meetings for us, there is a large ex pat/ Manc community out there and they’re really keen to help where they can.  GP Bullhound our friends from over here were great hosts as our friends over there ( Ed Prior, Nataly Bean and Alec Dafferner) . The Innovation Triangle in Seattle were amazing hosts and gave a fabulous overview of the area and what you could expect there. They must've done a great job as I'm totally sold - thanks Margo Shiroyama for the great information pack.

We met one particularly brutal but brilliant Angel Investor (Matthew Le Merle of Keiretsu Capital)  who told it like it was. If you haven’t taken money from your parents/friends/family then don’t expect them to invest in you. Also they see being able to get investment as an inherent skill in an entrepreneur so if you can’t get money in the UK, they have no sympathy out there. They are under the misconception that there is lots of Angel money in the UK, which there is, but what they don’t appreciate is that every Angel I’ve ever met only wants to invest in areas they understand. We don’t have enough Tech Angel investors in the North, and there are too many EU funded time wasters trying to put hurdles between Entrepreneurs and Angels. I felt quite smug at that point having already had investment, but I did feel for some of our contingent who have just started looking.

Linkedin is a vital part of prepping for your trip, it’s well worth contacting people you’re not connected to and asking for a meeting. Everyone I contacted got back to me. That doesn’t happen in the UK. I got a meeting with the CEO of massive Adtech company, who is an inspiration of mine, just off the back of a linkedin approach. The other thing to use if you don’t have the time is Searchquant.net the lovely Chris Zaharias can help you out there. Set your linkedin page up for the type of prospects you want to get and just let it run. It’s fabulous.

The weather in San Francisco in October was AMAZING. But their summers are foggy. Seattle was less dazzly but perfect for a family business who wants to move a family out there. The local council was super helpful and have a plethora of contacts they can help you with.

I think the UK could learn a lot from the US, from government policy on who can get Angel Co-Funded to how EU funded funds allocate their funds to councils attracting overseas companies/ investment into the area.

But in the meanwhile, those millions aren’t going to earn themselves, if you know anyone who needs a hand with their Google Shopping / Facebook dynamic Ads, etc and they’re looking for an award winning solution – please send them our way to Silicon Rammy (apologies for the plug).

Finally I’d like to thank my fellow Tech North Trippers for making it an unforgettable experience – slack will never be as much fun.  #TechNorthWestCoast M B Christie, Vicki Shiel, James Bedford, Mike O’Brien, Adam Mitcheson, Paul Brookes, Paul, Jon Leighton, Nick Black, Owen  , Ben Hookway, Richard Gregory , Mylo Kaye, and last but not least my new BFF and bed sharing buddy Ravneet Kaur.