Can one who lives in a 3rd world country target an investing round from a VC in the US?


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Can someone who lives in a third world country target an investment round from a VC in US? From the likes of Ycombinator, etc?

Funding Equity Venture Capital

asked Nov 16 '12 at 12:06
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Iam
16 points
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  • I don't see any reason why you wouldn't be able to but you may pose higher investment risk. – Karlson 12 years ago
  • Higher investment risk? Can this be clarified bit further? – Iam 12 years ago
  • US VC firm can invest anywhere around the globe. Most like to invest not only in the same country, but in the same area. If you are in a 3rd world country, they might see you as more risky because you could more easily dissapear, and would have less to lose in regards to reputation. Incorporate your company in the USA, and bring on a partner in the USA that can manage this activity. Doing it offshore is a recipe for disaster unless if you have the next big thing. – Frank 12 years ago

1 Answer


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See the answer to http://www.brightjourney.com/q/incorporating-startup-another-country-tax-benefits-negatively-affect-able-raise-money-vcs#a-53203 :

"Actually getting funding is a very tricky and subtle dance with investors. Once they are interested, you will discover that any delay greatly increases the risk of the deal being cancelled. For very good reason, VCs never invest in companies incorporated abroad. So you'll have to do a corporate flip at the last minute, which is likely to be complicated and, in the end, will kill the deal"

answered Jul 13 '14 at 15:29
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Alain Raynaud
10,927 points

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