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Globalization of VC is great for America, American investment firms, and startups in other countries. America gets a slice of the best, worldwide, and it helps

by alfl 5y ago

Globalization of VC is great for America, American investment firms, and startups in other countries. America gets a slice of the best, worldwide, and it helps companies that are often fighting uphill in their local markets. As a founder who has raised in Canada and is now raising in America: the cultural difference is night and day. America has significant advantages in willingness to take risk and the amount of capital to deploy. I have data showing, population adjusted, dollars per time, that American VC outclasses Canadian VC by at least two orders of magnitude. Likely much more. An anecdote from a friend I was discussing this with: "A former partner of mine was turned down by [every Canadian firm he went to.] Went to the US for a weekend and came home with US$10M. 4 years later, that company is valued at US$35B" It is an amazing experience talking to people who understand technology, understand risk taking, and put their money where their mouth is. I'm bullish on American's performance in a globalized VC market.

adinosaur123 5y ago
What was the company your friend was referring to?
sdesol 5y ago
I'm raising in Canada. Can you share some of what you have seen? My info is in my bio. Thanks.
- redis_mlc 5y ago
  The US is special because it has active startup investors in both SV and Boston/NY, and angels with extreme risk tolerance (Conway, Woz.) Canada is no worse and no better than any non-US country - meaning terrible. (With the exception of the Skype/Estonia connection.) Some Western European countries have rigid pension contribution requirements that make non-family-staffed startups impossible. In many parts of the world, it's all about personal/school/family connections with inherited wealth (India, China, Korea, SE Asia, etc.) Here's some examples of what works in Canada: - ActiveState was funded by Microsoft to improve Open Source tools for Windows - Canada has an entire national ecosystem around aerospace that is govt. funded (Bristol, Bombardier, etc.) The govt. scientists partner/adjunct with local universities, so you can approach them on campus. - Ottawa once had a telco industry, now replaced with Shopify HQ execs. So reach out to them. - But it's friends and family/mortgage your house/credit cards for funding otherwise. Any Canadian banker will suggest a heloc, and won't loan money without equal collateral.

by alfl 5y ago

adinosaur123 5y ago

What was the company your friend was referring to?

sdesol 5y ago

I'm raising in Canada. Can you share some of what you have seen? My info is in my bio. Thanks.

redis_mlc 5y ago
The US is special because it has active startup investors in both SV and Boston/NY, and angels with extreme risk tolerance (Conway, Woz.) Canada is no worse and no better than any non-US country - meaning terrible. (With the exception of the Skype/Estonia connection.) Some Western European countries have rigid pension contribution requirements that make non-family-staffed startups impossible. In many parts of the world, it's all about personal/school/family connections with inherited wealth (India, China, Korea, SE Asia, etc.) Here's some examples of what works in Canada: - ActiveState was funded by Microsoft to improve Open Source tools for Windows - Canada has an entire national ecosystem around aerospace that is govt. funded (Bristol, Bombardier, etc.) The govt. scientists partner/adjunct with local universities, so you can approach them on campus. - Ottawa once had a telco industry, now replaced with Shopify HQ execs. So reach out to them. - But it's friends and family/mortgage your house/credit cards for funding otherwise. Any Canadian banker will suggest a heloc, and won't loan money without equal collateral.