1. Be Close to Your Target Market:
Investors expect founders to be near their target market, which is why many founders move to the US early, often right after the Seed stage. Before raising funds, it’s recommended to establish a strong network with investors, founders, and customers in the US. For some investors, relocating to the US is a prerequisite for investment.
2. Israeli Opportunities Shine:
Despite recent tough years, American investors see opportunities in the Israeli market. Israeli founders have a track record of delivering, and with valuations and investment amounts having been high in the past (especially during COVID), there are now more attractive opportunities for American investors to invest in high-quality Israeli startups at more favorable valuations.
3. Current Situation Impact:
American investors who have previously invested in Israeli entrepreneurs will continue to do so. However, those who haven’t invested in the past may be hesitant in the current environment.
4. Initial Israeli Investors Are Key:
American investors expect Israeli startups to have at least one local investor in the early stages. They’re cautious if a startup couldn’t secure investments in Israel and only seeks funding in the US. It raises concerns, similar to an American startup from Silicon Valley approaching New York investors without local backing.
5. B2B Sales Focus on Individuals:
In B2B sales, you’re not selling to a company; you’re selling to a specific person within that company. Decision-making is often influenced by internal politics and interests. It’s crucial to understand American business culture deeply and build relationships with key decision-makers.
6. Strong Validation Matters:
Claiming “validation” from a senior Israeli executive at a global company (e.g., Google) isn’t always seen as sufficient if they’re not the actual buyer in the target market.
7. Relationship Building:
The best way to secure investment is through building relationships with investors or receiving recommendations from portfolio companies of that VC. This is another reason to be in the US and connect with founders in those portfolio companies.
8. Incorporate in the US:
Having an American company registered in Delaware (or elsewhere in the US) is a must for American investors.
9. Balancing Israeli Boldness:
While investors appreciate the “Israeli chutzpah,” they also want to see humility and active listening from Israeli founders.
10. Cultural Differences Among Investors:
There are significant cultural differences between investors in New York, Silicon Valley, and Austin.11. Thriving Israeli Community in New York: There’s a rapidly growing Israeli community of founders and investors in New York, with over 450 startups today.”
