Are VCs less likely to fund companies incorporated overseas?


2

Suppose I incorporate my company in Cayman Islands and then try to seek VC investment. Would VCs be more averse in investing in such companies compared to a company that is incorporated in Delaware?

Incorporation Venture Capital Company Investors

asked Apr 28 '11 at 11:44
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Kamikaze Pilot
253 points
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3 Answers


1

VCs will invest in the thing that they feel has the best hope of success and what they feel comfortable with.

Some VCs will only invest in companies in their local area, others won't care about geography at all.

I know an Australian company won round 3 funding in the US at the end of last year, so it's not impossible.

The Cayman Islands ... I think you would have to address why in your pitch. I would also answer how it won't be a legal problem.

answered Apr 30 '11 at 17:30
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Robin Vessey
8,394 points

1

Yes. I've even seen VCs demand that companies change their states of incorporation, within the US.

answered Apr 30 '11 at 19:45
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User6492
1,747 points

0

Yes (I assume you are referring to VCs in the U.S.).

answered Apr 29 '11 at 04:39
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Dana Shultz
6,015 points

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Incorporation Venture Capital Company Investors