How do I raise angel funding in Silicon Valley as a foreign startup?

You’re an aspiring entrepreneur. You’re a hotshot startup heading for unicorn status (whatever that means). You have the next best thing that will change the world.

Regardless of where you sit on the spectrum, or what your motivations are, be it the promises of riches and fortune, or driving sweeping social changes, we are all drawn by the allure of this mystical land, Silicon Valley.

However, the romantic notion of this place being awash with cash, and you landing in SFO to score that golden ticket could not be further removed from the truth when faced with the reality of the competition and hustle.

Just think, the world’s innovation citizens all come here chasing that same dream. As another foreign startup, what must you do in order to survive and be noticed?

I was privileged enough to recently speak with Sarosh Kumana, a Valley veteran who is passionate about the world of disruptive technologies and empathetic to the challenges faced by budding startups. He’s also a seasoned entrepreneur, angel investor and a Board Advisor to Sand Hill Angels – a group of over 100 active investors made of successful Silicon Valley executives and accredited investors.

Our conversation was around the theme of how a foreign startup can seek funding in Silicon Valley.

As a foreign startup with no local connections, what is the best way to get in front of angel investors?

There are a huge number of startups in the Valley, with a similarly large number of angel investors. The reality is that most angel investors will not take any emails or calls without an introduction from someone they know, and whose judgement they respect. It’s a filtering mechanism.

Most angel investors will not take any emails or calls without an introduction from someone they know and respect.

“I’m part of several angel groups,” Sarosh said, “One receives 200 submissions per month for filtering; another curates submissions down to 25 for the selection committee; and another receives 70-80 deals, which go through a screening committee of 10 people; each of these groups whittles down submissions to two to three startups presentations per month to the larger angel group.”

Evidently, the volume of deal flow is monstrous, and naturally, without the appropriate introductions, there is simply no bandwidth to respond to every random contact. As Sarosh puts it, “I’d like to be a nice guy, but there’s no time for the luxury to be a nice guy to everyone.”

Building your network is a gradual process, and getting the introductions to the right people will not come easily either. Don’t be surprised if it takes a bit of time. But luck might also be on your side.

In order to be fundable, what traction and presence do I need in the U.S.?

“We don’t invest in non-US startups,” he said, “Most angels want to be close to and be available to their investments.”

Sarosh makes three suggestions to be considered for funding:

What are your views on investor appetite investing in foreign startups?

As a foreign startup seeking funding in Silicon Valley, what are the most common mistakes?

What are the three most important things an investor would immediately look for?