4 ms·
I've often thought about why it's easier to get investment in the US compared to Ireland(EU). I suspect the culprit reasons are: US VCs are backed with more mo
by s_dev 13y ago
I've often thought about why it's easier to get investment in the US compared to Ireland(EU). I suspect the culprit reasons are:
US VCs are backed with more money and also less risk averse.
Developers are cheaper here.
There probably is an opportunity for US investors to come to Europe to fill this role.
- tinbad 13y agoMy experience raising money in Europe are the very low valuations you get from EU VCs. I've only raised for one company and probably talked to a dozen EU VCs and eventually got 2 term sheets where the highest valuation was a third from the deal we eventually got. This tells me that the amount of good/promising startups is low, hence VCs can invest at lower valuations and because of that the amount of VCs is low so there's less competition between them. I feel like its a perpetual downward motion where good ambitious startups and VCs relocate to other places (US) because of more favorable outcomes. This trend is hard to turn around and I'd argue that Europe does not need A large VC market as it culturally does not fit the region. I'd say if you're a EU startup you are not meant to grow fast and take gambles. Bootstrapping is the way to go.