What do US-based investors really think about European startups?

Since this seems to be the Europe versus US week, I wanted to share a dynamic that I think is really interesting, in terms what I think many investors’ generalized view of European open source startups is. First of all, almost all the US-based investors I know have European companies in their portfolio, so I don’t see any reason why a European company would have to move to the US to get funding from a US-based VC.

But here’s what happens when I talk to investors in my network and tell them I’ve moved to Europe.

Investor: Hi Emily! What’s new?

Me: Hi {investor}! I recently moved to Paris.

Investor: OMG! This is great news. There are a lot of great startups in Europe, but they really need your help / really need someone like you. Let me think about which ones in my portfolio I should introduce you to.

Ok, it’s simplified a little, but a version of this exchange has happened with almost every investor I’ve told about the move. Here’s what it tells me (and there are loads of exceptions, these are just generalizations):

  • A lot of investors must see European startups as comparatively less good at GTM and strategy around positioning / commercial strategy, but very good at engineering.

  • There are not very many people with skills like mine (thinking about GTM and commercial strategy for open source startups) in Europe, so even if your average US-based founder is no better at business strategy than your average European one, it’s easier for founders in North America (trying not to exclude Canada, here) to get access to good GTM advice

  • There’s one final observation, though… given that for me, a very small percentage of companies whose investors think they need my help will actually hire me, I suspect European founders less likely to be self-aware about their need for GTM help. In other words, the disconnect between what their investors think they need in terms of GTM/commercial strategy and what the founders think they need is much larger for European founders.

Agree? Disagree? Let me know :).

Emily Omier