U.S. Expansion, Fundraising, and Exit: A Comprehensive FAQ
[LAST UPDATED: November 28, 2023]
For many high-growth UK/European and Israeli tech and life sciences companies, U.S. expansion, fundraising, and exit are key steps in the journey. The U.S. offers the promise of massive commercial opportunities and plentiful capital, but doing business, raising money, and maximizing enterprise value in an unfamiliar, highly competitive environment requires thoughtful advance planning and clinical execution.
Based on our discussions with UK/European and Israeli startups and scaleups over the past decade, below are over three dozen frequently asked U.S. expansion, fundraising and exit questions (with linked answers).
We intend to make this a living resource for the UK/European and Israeli tech and life sciences communities and will update it as appropriate. If there are key questions you would like to see addressed here, feel free to send me suggestions at email@example.com.
- When should our company consider expanding to the U.S.?
- How do we determine the optimal U.S. expansion strategy?
- What are the unique U.S. expansion considerations for B2B companies?
- What is the simplest way to expand to the U.S.?
- What are the sales tax considerations associated with selling into the U.S.?
- When do we need to create a separate U.S. company?
- Why are so many companies incorporated in the U.S. State of Delaware?
- What are the new beneficial ownership reporting requirements for U.S. companies that come into effect in 2024?
- Where is the best place to establish U.S. operations, and what resources can we leverage to help make that decision?
- How is hiring employees different in the U.S., and what are the most common mistakes made by non-U.S. companies when hiring a US-based team?
- Where can we find a guide to hiring U.S. employees?
- How do we provide equity to U.S. employees and how does it differ from providing equity to employees in our home market?
- What does it cost to set up and scale a U.S. business?
- What are the primary legal considerations when setting up and scaling a U.S. business?
- What are the primary tax considerations when setting up and scaling a U.S. business?
- What are the primary immigration considerations when relocating to the U.S. to set up and scale a U.S. business?
- What are the other key administrative and logistical considerations?
- What should we consider with respect to U.S. patents and trademarks?
- How do we manage the risk of U.S. litigation?
- To what extent do we need to work with U.S. lawyers and other U.S. professional advisors?
- What are the key considerations when expanding through M&A?
- What are the unique considerations for fintech companies expanding to the U.S.?
- What are the key considerations when offering payment services in the U.S.?
- What U.S. and UK government resources are available to assist companies with U.S. expansion?
- Where can we learn more about U.S. expansion?
- What are the key differences between U.S. and UK/European VC investors?
- When should our company look to raise capital from U.S. VC investors?
- Will U.S. VC investors invest in early-stage non-U.S. based companies?
- Does a non-U.S. based business need a U.S. parent company to raise money from U.S. VC investors?
- How does raising capital from U.S. VC investors differ from raising capital outside the U.S.?
- How do we meet U.S. VC investors?
- How do we pitch to U.S. VC investors as a non-U.S. team?
- What should we look out for in term sheets from U.S. VC investors?
- How do we structure a financing round with a cross-border investor group?
- How do we use a Y Combinator-style SAFE as a UK company raising from U.S. investors?
- What are the primary tax considerations when U.S. investors invest in non-U.S. companies?
- What is the typical cost of a U.S.-led financing transaction?
- Where can we learn more about U.S. fundraising?