Indian Investors or U.S. Investors: What Entrepreneurs Prefer?
Bangalore: Many Indian entrepreneurs say that they would rather be funded by a US investor than and Indian investor. In fact most would prefer specific Silicon Valley investors. There are many pros and cons to both Indian and Silicon Valley investors.
Investors in the U.S.
1. In the valley the investors move quickly. They make decisions fast. Some companies have been known to take a few days or up to a month to raise a seed round of around $300K.
2. Investors are willing to invest in breakthrough ideas, instead of me-toos. In fact they have deep liking for disruptive ideas.
3. They are willing to lead a round, and help you organize other investors.
1. There’s tremendous deal flow in the U.S. Competition to get funded by a valley investor is huge. There are many companies that have 3 to 10 times the traction as their Indian counterparts in the same stage of company.
2. Valley investors don’t like funding anything outside the valley.
3. You have to move to the US. The biggest problem is immigration. H1B visas are much harder now than 5 years ago.