FROM THE CEO

I can talk from a place that addresses both. ANZA companies have raised capital in both countries. The funds are of course, the same. The experiences though are somewhat different.

In both Silicon Valley and Australia most of the work associated with raising VC is ensuring your business's financial house is in order and your business model is clear. There is also the requisite targeting of potential VCs as well as the long work of building relationships prior to needing the money.

One of the major costs in raising capital is the building of these relationships that can lead to introductions to key players. ANZA works with companies to build their position in the US and our mentors are critical in the process of making the right introductions to potential investors. 

Here are some of the differences we've come across when working with Australian companies to raise venture capital in the US: 

• Length of presentation: In the US it's simple. You need a 1-page executive summary and a 12-slide deck. American VCs have no time for anything longer at the first meeting. 
• Corporate advisors: While these abound in Australia, there is no such thing in the US. The CEO or founder leads the venture capital raise. I've actually heard a Silicon Valley VC say, "What's a corporate advisor?"
• Legal support is not expensive: In America there are a select number of boutique lawyers who charge about half the rate of the Tier One firms. Alternatively, many of the large Tier One firms in the US may defer fees upfront if they feel comfortable that you will be able to pay them for their services when you raise capital.
• Commission? Generally speaking, the typical Silicon Valley deal will not include a "commission" to anyone who has helped you raise venture capital. Should you work with an organization that helps you raise money, be sure to agree to a fee upfront and pay upon successful completion of the raise. During due diligence you would disclose this expense just as you would any other deferred fees such as legal costs.

Questions? I will be in Australia for another round of meetings from 28 May - 6 June. Click here to set up an appointment to find out more about how ANZA's services can help you raise VC, increase your customers or make strategic partnerships in the US. And, if you're already in the US and want to talk about how ANZA can work with you to accelerate your business, please send me an email.