Fundraising across borders: overcoming challenges & securing capital.

Startup Fundraising Sparring Partner 

Director of Growth
Amesto Global

Sims: Through our own clients, we have experienced the differences in founders raising capital between the US and Europe, especially given how these funding environments shape a company’s expansion strategy. We see firsthand how the capital raised—where and how it was secured—impacts a company’s ability to execute its growth plans. 

The approach to fundraising can vary significantly by region, with differences in investor expectations, market maturity and regulatory conditions all playing a role. Cultural attitudes toward risk also seem to influence how deals are structured and what investors look for. For startups planning international expansion, understanding these nuances can be just as important as securing the capital itself.

Based on your experience, what are the most significant differences between raising capital in the US versus Europe?

Jorian: There are a few key differences but, in the US, scale dominates the conversation. Venture capital is simply much larger in the US. There's a deeper bench of investors willing to take big swings, especially at the earlier stages. In general, US investors are more comfortable with risk, which translates into a greater willingness to back bold visions. That said, it doesn’t necessarily make fundraising easier. There’s also more competition for those dollars.  

I would also say that another difference is speed and mindset. US fundraises often move faster and feel more like a sales process, while European rounds tend to progress at a slower, more deliberate pace. 

Culturally, US investors tend to focus on a company’s US growth story—where you're headquartered, selling, and planning to scale—whereas European startups are thinking internationally from day one. And while top-tier European investors can be just as ambitious, the average US investor typically places a higher premium on a bigger growth story. 

Sims: Certainly – our experience has often been that European HQ companies are thinking globally from the outset while US companies may scale in their backyard for years before considering global expansion. In the same vein, a key consideration for European startups raising in the US is whether establishing a legal presence there is necessary. While some investors prefer—or even require—a US entity before committing capital, others are more flexible. Beyond investor expectations, this decision can also affect regulatory compliance, tax obligations and long-term growth strategy.  

From your experience, how does having a US entity impact a European startup’s ability to raise capital from US investors? Are there specific situations where it becomes a necessity? 

Jorian: The need for a US entity has become less of a hard requirement than it was a few years ago. Many top US investors are now comfortable investing into UK entities, and increasingly into certain European entities, especially if those ecosystems have seen consistent VC activity. 

That said, it’s not black and white. If US investors are unfamiliar with your country’s legal structure or see tax/regulatory friction, they may prefer a Delaware entity. But having a US entity doesn’t magically make you a “US startup” in their eyes. They’ll still ask: Where’s your team? Where are your customers? Do you have US traction or experience? 

The main time it becomes a necessity is when a US VC includes it as a condition in their term sheet. If that happens, a Delaware flip might be required—and at that point, you’ll want to consult a legal expert to structure it properly.

Sims: On the flip side of that, we have also seen companies jump straight to incorporating a US entity solely for fundraising purposes and without having the “bigger picture” in place.  For European startups looking to raise capital in the US, planning ahead is crucial.  I have seen companies secure funding only to face unexpected hurdles because they did not have the right business structure, a clear market entry strategy or the operational foundation to support growth. 

For European startups looking to raise in the US, what are the key things they need to have in place before engaging with investors? 

Jorian: When pitching to US investors, start with a clear, compelling story that shows billion-dollar potential. US investors are backing big visions, so it’s important to demonstrate that you’re not just building a strong business—you’re building one with massive upside. 

A key part of your narrative is your US story, and it’s worth taking a moment to ask yourself a few critical questions before reaching out to investors: Do we have any traction in the US market? Is someone from our team already on the ground? Are we actively planning to expand? If your US presence is still early, you’ll need to show what makes your product or opportunity so unique that it’s worth backing even from across the Atlantic.  

Lastly, above all, be thoroughly prepared. That means more than a polished pitch deck. You’ll need a well-researched investor list, a strategy for warm intros, your data room ready, and clear answers to tough questions. If you treat preparation like a serious project, you’ll show up to investor conversations with confidence and clarity.

Sims: While we do not work on the fundraising side ourselves, we often see the challenges that emerge post-raise, particularly when companies expand into new markets like the US. One of the biggest missteps we come across is companies underestimating the true cost of doing business in a new region. From hidden employment costs and regulatory compliance to customer acquisition and operational overhead, the financial realities can look very different from initial projections. 

In a competitive funding environment, it does not seem like enough to rely solely on a strong product and an ambitious expansion plan. Investors want to see a business plan that reflects a deep understanding of market entry/operating costs, realistic timelines and a clear strategy for sustainable growth. Too often, companies may raise capital based on assumptions that do not hold up once they hit the ground, which can put them in a difficult position sooner than expected.  

From your perspective, what are the most common mistakes founders make when preparing for fundraising?

Jorian: One of the biggest mistakes founders make is diving into fundraising too soon. Fundraising should be treated as a structured project—not something you figure out on the fly. When founders start taking investor meetings before they’re ready, they often burn good opportunities. 

Another common pitfall is failing to craft a sharp and focused story. Many founders try to list out 20 reasons someone should invest, but what investors really want to hear are the 3-5 key factors that make your company a compelling bet. 

I also see many founders focusing too much on the near-term opportunity, while neglecting to paint the bigger picture. Investors know startups are risky—they're looking for the kind of ambition that could lead to a massive outcome. 

Finally, I often see founders spending too much time perfecting their pitch deck, and not enough time preparing for the investor Q&A. Most of your time with investors will be spent answering questions, not presenting slides—and that’s where the round is really won or lost. 

Sims: One of the most impactful aspects of working with a diverse range of companies is the constant exposure to innovative ideas, products and technologies. Every time I meet a new Founder, I am inspired by their vision and the challenges they are striving to solve. This experience has made it clear to me how powerful storytelling is in shaping investor appetite and influencing the success of a fundraise.  A compelling narrative does more than just convey the business idea; it engages the audience on a deeper level, helping them connect with the vision behind the company. People don’t just back products: they invest their time & resources in people, vision and the potential for growth.

Tell us, how important is the narrative when pitching to investors? What makes a startup’s story compelling?

Jorian: Narrative is everything when it comes to pitching to investors. It’s the key to capturing their attention and making them care about your business. A compelling story answers the big "why" questions: Why is this the right team to solve this problem? Why is now the ideal time for this solution? What makes your product uniquely powerful or urgent?

At the early stage, especially, the team often carries the most weight. If you can clearly articulate why your background, insights, or approach is uniquely positioned to win, it makes a huge difference.

To keep the story coherent and memorable, I always encourage founders to focus on the 3-5 reasons why someone should invest. Let those points anchor the narrative. If you try to tell three different stories at once, you risk losing the investor’s attention and their conviction.

Sims: Across our own clients and global network, we have observed significant shifts in the fundraising landscape in recent years. As the startup ecosystem continues to navigate challenges—from inflation and economic uncertainty to technological advancements and evolving consumer behavior—founders must stay proactive in understanding these changes and adjusting their strategies accordingly. Keeping ahead of these trends is not only critical for securing investment but also for positioning a startup for long-term success. We have seen companies with ambitious expansion plans struggle because their expectations for closing a round quickly did not align with the realities of raising capital. 

Looking toward the second half of 2025 and beyond, the landscape is expected to continue evolving, with new expectations and opportunities emerging for both investors and founders. With these changes in mind, understanding how fundraising strategies must shift is more important than ever. 

In your opinion, how has the fundraising environment changed over the last few years, and what should Founders prepare for in 2025 and beyond?

Jorian: It’s been a rollercoaster for venture funding over the past few years. In 2021, the market reached record highs—rounds were happening fast, and capital was flowing. By 2023, however, that momentum had slowed considerably. Many founders found themselves caught in a cycle of investor meetings that rarely converted into actual commitments. 

Now, in 2025, things are looking up—but in a different way. We’re seeing a resurgence in venture dollars, particularly in the first quarter, but most of that capital is going into a smaller number of companies—often large AI rounds or breakout growth stories. 

So while there’s room for cautious optimism, the bar is higher. Founders need to be razor-sharp in communicating why they’re a standout in this market. A strong narrative, thoughtful preparation, and a well-run process are more important than ever.

Sims: Finally, for those embarking on their first major fundraising journey, the learning curve can be steep. Getting the right advice early on can make all the difference.  

What advice would you give a first-time founder raising their first significant round? 

Jorian: Think of fundraising in four distinct phases: research, preparation, execution, and getting back to business.

In my experience, most founders skip the research phase, but it’s critical. I would recommend talking to other founders, studying the current market, and understanding what kind of round you want to raise and why. There’s great data and commentary out there—whether it’s Peter Walker at Carta or newsletters like mine, Into the Ring.

With a solid foundation of research in place, you’re ready to prepare—get your deck, investor list, data room, and pitch answers tight. Then when you start your raise, approach it with momentum. Talk to lots of investors in a short window to build excitement.

The goal is to raise on your terms, without dragging it out. Once the round is done, shift your focus fully back to building the business. Fundraising is just a milestone on your startup’s journey.

Fundraising can be one of the most challenging parts of building a startup, but it’s also one of the most important. From understanding regional differences to crafting a compelling narrative and preparing thoroughly, there’s a clear path to doing it well. Jorian’s insights highlight what it takes to stand out in today’s market and raise with confidence. At Amesto Global, we are proud to support founders as they navigate this journey, helping them lay the right foundation for sustainable growth, wherever they choose to scale.