If you can make it there, you can make it anywhere. For many founders, expanding to the USA is the ultimate goal. Easier said than done. The good news is: having your foundation in the Amsterdam or Dutch startup ecosystem is a good foundation for doing business in the US. And there are different ways to find help when thinking about expanding to the land of opportunity.
Funding fit for unicorns
Expanding to the USA is a dream for many founders. Not in the least part, because of the VC money available for starting companies. While the Amsterdam ecosystem for startups is internationally known, one of the things lacking is VCs with deep pockets that can fund the growth from early-stage to unicorn.
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In the USA, that is hardly a problem. Investors get on board early and big. Several Dutch founders experienced that first-hand. According to Oliver Binkhorst, Dutch founders or co-founders of startups in Silicon Valley managed to raise 1 billion in total last year. That is 5 times more than in 2020. To give you a further idea of the magnitude of funding rounds: the total of one billion was raised by only 11 companies.
DutchTechSF boosting Dutch successes
According to Binkhorst, this is a sign that the 28 Dutch startups in Silicon Valley are maturing, as he explains in Financieel Dagblad. Binkhorst should know. Seven years ago, he took the initiative to start DutchTechSF, which turned into a community of Dutch and American entrepreneurs and investors. Its goal is to boost the successes of Dutch startups by connecting stakeholders through their online platform and offline meetups and social events.
As one of the initiatives, DutchTechSF is preparing its community members to get a coveted spot in Silicon Valley’s Y Combinator. Last year, the accelerator, known for establishing the success of companies like Airbnb, Stripe and Dutch Messagebird, hosted six Dutch startups selected out of tens of thousands of applications. This year, Amsterdam-based startups Iomete and CUTR are already set.
ScaleNL: new accelerator for expanding to US
Since this year, there will be another opportunity for startups looking to set foot on the ground in the US. ScaleNL starts an accelerator that gets Dutch startups ready for an American adventure. Selected startups receive three months of coaching and mentoring to provide a soft landing in the US. This includes a trip to the country to meet stakeholders and put their newfound skills to the test.
The ScaleNL accelerator is an initiative by the Consulate General of the Netherlands in San Francisco. As Holland in the Valley, they’ve been hosting events and setting up programs to boost the collaboration between Dutch startups and Silicon Valley for years now. ScaleNL is the first, full-blown accelerator to help startups reach stateside.
‘Little VC money compared to US’
Michael Dooijes is Startup Liaison in San Francisco and founding partner of ScaleNL. While he acknowledges the Amsterdam-Delta ranks among the highest ecosystem in Europe, he also sees it is not living up to its full potential. “There is relatively little venture capital compared to the United States. This means Dutch companies grow slower than American companies. We could create more jobs and growth in the Netherlands if our startups do better internationally.”
“Silicon Valley has the world’s most developed ecosystem for startups and growth, which makes us particularly interested in opening this ecosystem wider for our companies. Our accelerator ScaleNL will make Dutch startups market-ready for the United States and will have a dedicated focus on finding the right investors for their growth. Together with the initiatives by private companies and angel investors, this accelerator supports this goal.”
How Dutch companies stand out in the US
Dooijes also sees a demand for Dutch ingenuity in the Valley. “As a consulate, we see the Dutch success in the US every day. We have an open trading mentality similar to the United States. There is an efficient and transparent working culture here, and as in The Netherlands, Americans are direct in their approach to business partners.”
“Dutch companies stand out because they combine innovation with a will to improve the world”, Dooijes continues. “We don’t just build tech for the sake of it. Instead, we want to contribute to more significant social challenges, and we come up with smart and creative solutions for problems. The US appreciates that out-of-the-box thinking and expertise. Combine that with our willingness to work together, between government, businesses, and universities, and you have an innovative ecosystem that creates jobs, growth, and world-changing inventions.”
USA is more than Silicon Valley
When thinking about startups and the USA, Silicon Valley is the first to spring to mind. However, Dooijes stresses the Valley might not automatically be the right place to start an American adventure. “Silicon Valley is good for tech innovation, Seattle is good for cloud and e-commerce, Atlanta and New York for fintech, Boston for biotech, and LA for media and broadcasting.”
“Dutch companies often forget that it makes a huge difference if you start your company in New York, San Francisco, or Miami. Each place has its own ecosystem of entrepreneurs and investors. So if you are in the wrong city, you might not find the right investors.” ScaleNL aims to find the right fit for each participant and prepare them to deploy in that particular city.
Cultural differences between canals and Valley
Besides focusing on different business areas, these US cities also have different cultures. Living in the tiny Netherlands, it is easy to forget just how big the USA is. “Don’t forget that New York is about halfway between San Francisco and Amsterdam”, Dooijes points out. “A Dutch company that recently became active in several American cities said that he had the idea that he was applying for a licence in three countries. Each city had its own laws and customs.”
To help startups ground in their new environment, the consulate has published different playbooks for LA, Silicon Valley and Seattle. Besides tips on finding and talking to investors and growing your business, these also give practical advice to navigate everyday life. For example, it explains to startups what the Seattle Freeze is, how to dress in San Francisco, and why it matters in LA which neighbourhood you live in. Small things that can make a world of difference, says Dooijes.
“All Dutch offices in the United States, in New York, Miami, Atlanta, Chicago, San Francisco, Boston, Los Angeles, Houston, and Washington, DC, can help entrepreneurs understand the regional differences. They have special startup liaisons who can connect startups to their network and have online training on doing business in the US. They work together with a network of mentors, successful Dutch entrepreneurs in the United States. From their own experience, they can help Dutch startups to understand and conquer the US market.”
Registration for ScaleNL about to close
Founders of Dutch startups looking to expand abroad who could use some guidance can still apply for the ScaleNL accelerator. Still, there’s not much time: registrations close tomorrow, after which the selection process will take place later in February. The programme starts in April. More info and signup here.
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