ITR #012: Raising VC Money from Across the Pond

Welcome to the latest edition of “Into the Ring” - my biweekly newsletter on how to successfully plan & execute on your startup fundraise. As a reminder, I’m Jorian Hoover and I’m a Startup Fundraising Sparring Partner. I guide Pre-Seed thru Series A founders through their fundraising process, and you can check out how to work with me here. And a warm welcome to the new subscribers for this edition! If you were forwarded this newsletter, you can subscribe here.

As we enter the second half of April, I’m seeing signs that VC activity is picking up. For example, early Pitchbook data from Q1-2025 shows that the $ value of VC transactions was at 2021 levels. However, # of deals remains down as many of the $s are going to mega-AI deals. Check out the below chart that Jackie DiMonte, General Partner at Grid Capital, shared on LinkedIn.

I’m still hearing from many VCs and Founders that outside of top AI companies, Series A and beyond remains weak, as many investors are seeking better comfort around the exit environment. The recent IPOs such as CoreWeave could be a boon, but then again the government is litigating against Meta for acquisitions from 10+ years ago (Instagram + WhatsApp). Not to mention the recent market turbulence. So grab your popcorn🍿and I’ll continue to update you on what I’m seeing in the market.

Today’s newsletter is a topic that’s important to me - how UK and European founders should think about raising from across the pond. I primarily work in the U.S. market, but I often work with UK and European founders eager to raise from U.S. investors (or at least, US-style investors in the UK/Europe). Without further ado, onto today’s newsletter essay.

Crossing the Pond: What UK and European Founders Need to Know About U.S. Fundraising

Earlier this month, I hosted a webinar with Anthony Rose, CEO and Co-Founder of SeedLegals, on how UK and European founders can raise capital from U.S. investors (if you’re bored and would like to check out the full hourlong video, you can watch it here). We covered a lot of ground—from deck expectations to U.S. fundraising culture to why local legal norms often don’t translate across the Atlantic.

Many of the takeaways from that conversation are included in this newsletter. My goal here is to help you understand when raising from U.S. investors actually makes sense—and when it doesn’t.

Because while a growing number of European founders are looking to the U.S. for capital (especially when local VCs say "come back later"), that doesn’t always mean the grass is greener.

The Scale Difference

Let’s start with the obvious: U.S. venture capital is enormous. As we discussed in the webinar, U.S. funds write larger checks and have deeper pockets. Some estimates put the U.S. VC market at nearly 10x the size of the UK’s.

But with scale comes competition. You’re not just pitching into a bigger pool—you’re going up against more companies, more noise, and more founders who know how to play the U.S. game.

So while it’s true that American investors deploy more capital, they also see thousands of pitch decks each year. Your job isn’t just to be impressive—it’s to be impossible to ignore.

What U.S. Investors Expect

One of the biggest mistakes I see founders make is underestimating how different the bar is when talking to U.S. VCs. If you go in with a "modest but growing" story, you're going to struggle.

Anthony summed this up perfectly during our chat: U.S. investors are looking for billion-dollar potential. They expect:

• A bigger story

• A product that can scale massively

• Clear ambition to dominate your market

• Traction that shows you’re on your way there

In other words: don’t go in small.

This doesn’t mean you have to make things up or pretend to be something you’re not. But it does mean you need to frame your story in terms of scale, speed, and market potential. Even your deck should reflect this. American investors tend to prefer bold headlines, clean visuals, and clear messaging. If your slides read like a novel, you’re probably missing the mark.

There’s also a cultural factor. U.S. investors tend to move faster and expect a tighter pitch. They want to know:

• Are you targeting the U.S. market now?

• Do you have customers or traction stateside?

• Is this a product that solves a universal pain point, not just a regional one?

If your answers are vague, they’ll politely pass.

When It Actually Makes Sense to Raise from the U.S.

So, when does it make sense to fundraise across the pond?

In the webinar, Anthony and I both came back to two core scenarios where U.S. capital is a smart move:

1. You already have U.S. traction

If you’re generating revenue from American customers, have users in the U.S., or have established some kind of early presence (even just signal), you’re no longer an outsider. You’re building something relevant to their market, which makes you a lot easier to invest in.

2. You’re building something so unique it transcends geography

Maybe you're the clear category creator in a space that any global investor would find compelling. Or maybe your tech is so differentiated that it doesn't matter where you're based—it just matters that you exist.

In both of these cases, your pitch isn’t about where you’re from – it’s about where you’re going.

But if you're pre-revenue, pre-product, and based in Europe, pitching U.S. investors can be an uphill battle. The friction adds up fast: they don’t know your market, they’re not as familiar with your legal docs, and they likely have five companies solving a similar problem in their own backyard.

As Anthony put it, "You're asking them to bet on something that's far away, both literally and culturally. You need to give them a reason to believe."

Final Thought

Here’s the bottom line: chasing U.S. capital too early can backfire. You can burn time, damage momentum, and end up in an awkward middle ground where you’re not quite fundable at home or abroad.

But when the timing and story align? U.S. capital can be transformative. Bigger checks, deeper networks, and faster follow-on potential. I've seen it work brilliantly—but only when founders are truly ready.

So if you’re a UK or European founder eyeing the U.S., start by asking yourself a few questions:

• Am I building a story big enough for this stage?

• Do I have proof points that matter in a U.S. context?

• Am I willing to play by their rules—and compete in their arena?

If the answer is yes, then go for it. But go in prepared, with conviction, and a pitch that speaks their language.

Because raising from the U.S. isn’t a shortcut. It’s a strategy. And when it’s executed well, it can open a whole new chapter for your startup.

👉Want a sparring partner to help you plan for a U.S. raise? I would love to help.

Thanks for stepping Into the Ring 🙏

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