EP #66 - Philipp Stauffer: Is Silicon Valley the Promised Land for Startups?

Timestamps:

1:52 - What mistakes do Swiss startups make when it comes to moving to Silicon Valley?

16:02 - When should you not go to the Valley?

29:56 - Hiring the right sales person

32:28 - Tackling the PR and marketing game

43:23 - What shocks Swiss companies when they come to the US?

The Episode In 60 Seconds

Competing with Silicon Valley Startups – what to expect

• Switzerland is generally strong in research and not so strong in productization and marketing. Be aware of this and give your amazing product the showlight it deserves.
• Cap tables (the “who owns what” in a company) are a big topic. SV investors don’t like to see large, fragmented cap tables. Be smart and don’t give away more than 20% of your company per round.
• SV is fast-paced and direct. Be prepared to adapt your style of doing business.

Is Silicon Valley the promised land for all startups?

• The short answer is: no. The long answer is: it depends. Know where the experts in your field cluster. This can be Houston, New York, Chicago …
• Don’t underestimate the value which comes from a Swiss brand: neutrality, trust and reliability, to name a few.

Building up your presence in the US

• Your expansion should be customer centric. Move to a new market when you feel you understand and are ready to serve the customer there.
• Expanding abroad usually entails building a physical presence there. Often this requires at least one of the founders to relocate in order to build a quality team away from home.
• Ideally, your first hires have existing customer relationships that you can leverage.
• Build the business first, fundraise second. This will give you much more negotiating power.