The Nordic Angel Program, Hedman Partners, and other EstBAN members recently spent a week in California visiting Silicon Valley and San Francisco, home to one of the most vibrant startup ecosystems in the world.
The intensive 5-day program was both informative and invigorating. The program included meetings with VC companies, other Angel investor groups, tech hubs, accelerators, and various innovators. Listed below are five helpful takeaways from the trip highlighting what to keep in mind when engaging with international investors, corporations, and accelerators.
Tip 1. Local investors pursue extensive research concerning the mindset, values, and problem-solving skills of entrepreneurs in order to gauge their behavior and personalities in the workplace. For some examples, this research is based on the Hogan Personality Inventory (HPI), which assesses normal or average personality traits and how a person relates to others when they are at their best.
The assessment provides valuable insight into founder leadership styles and their potential for success while working in different capacities.
Tip 2. Investors wish to allocate their money to established US companies primarily because of the tax benefits that apply to US investors if they invest in local companies (read: Delaware incorporated).
Tip 3. For a typical scenario that involves US-sourced funding, the company headquarters, CEO, and assets are located in Silicon Valley. Meanwhile, subsidiaries outside of the US manage and supervise the development team.
Tip 4. A patent portfolio is helpful, but it does not need to be the primary focus, nor does it indicate the potential value of a startup. The strategic value of the various elements included in the patent portfolio may vary from buyer to buyer.
Tip 5. Corporations are willing to acquire startups to obtain their technical knowledge; however, to get noticed by corporations, a startup requires visibility. Therefore, startups need to be involved in accelerators and involve consulting companies serving corporations to effectively guide them in. The right accelerators and contacts can aide startups in developing networks that eventually attract corporate attention and lead to subsequent acquisition.
Overall, the insight gained by this trip overseas was immensely valuable not only for clients of Hedman Partners, but also beneficial for potential investors and the Estonian startup ecosystem as a whole.
There is no doubt that this experience will have a positive impact on Hedman Partners, leading to more assured, informed, and dependable services for our clients.
