Four key takeaways from the Black Founders trade mission
As the UK's tech scene continues to grow, it has become increasingly attractive to international investors. The scale at which you can achieve global success with a UK-based tech company is huge. But what opportunities are available for startups in the US?
Last month, 12 of the UK’s top Black-founded technology startups were flown to New York to take part in the first-ever Trade Mission. The mission is a collaboration between the British Consulate-General in New York and the UK’s Department of International Trade, which aims to give startups the unique opportunity to break into the US tech market and pitch to investors.
Here are some of the key takeaways for talented UK tech entrepreneurs who want to succeed overseas:
- Enthusiasm for UK tech startups and minority entrepreneurs
Historically, American investors have been focused on US-based tech companies, but this is beginning to shift. Investors have a huge appetite for innovative businesses that can scale into international markets - they want strong businesses, not just US-based businesses. Furthermore, as diversity in business is now being taken more seriously, there’s huge momentum for black-owned and black-founded companies. This puts minority entrepreneurs in the best possible position to make an impact overseas as they are met with a more inclusive and fair investment landscape.
- The investment landscape in the US vs Europe
The investment market landscape in the US is more mature - it’s not only bigger but also operates faster, which means investors are more willing to quickly put money into strong emerging startups. B2B SaaS businesses like White Label Loyalty are particularly sought-after.
- Transatlantic similarities and differences
It’s also important to note that the US market is highly variable. The market in New York, for example, will be different from the market in Arizona. Each state has a slightly different ecosystem, and businesses that are expanding into the US need to keep this in mind. In general, however, there are lots of similarities between our two countries. The language, culture, and technology ecosystem are very familiar, which makes it a lot smoother for UK-based businesses to integrate into US markets.
- Businesses with US offices still might be preferred
The new remote world makes international collaboration a lot easier. However, having a presence in the US will naturally be advantageous for startups looking to break into the American market. The US market is so large that businesses need to have a physical presence if they want to truly make an impact - both in terms of client success and business growth. Investors understand this and are willing to invest a lot more in businesses that have a base across the Atlantic.
The UK has a thriving startup community with talented young companies that are already establishing success in the British markets. That being said, the US is an entirely different landscape and will require a different approach. For businesses that can clearly showcase their strengths, success in the US is entirely possible.
Initiatives like the Black Founders Trade Mission are also helping towards making the US investment landscape more promising for minority businesses. Startups that are able to showcase their innovation and scalability potential will be especially welcomed by eager investors. Businesses that are serious about expansion should also consider opening up a base in the States, as this will help them stay connected with investors and VCs who truly understand their market.
The US market is more saturated with a wider range of startups, bigger and better-funded companies, and more eyeballs to spread their message. If a UK startup wants to get out in front, it needs to be able to differentiate itself. Take everything you have learned whilst growing your business in the UK, and be bold in your intention to expand internationally. The key is to not shy away from the opportunities awaiting you across the Atlantic.
