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Selling ideas in the US vs Europe

 


I saw many entrepreneurs trying to sell their ideas on both sides of the Atlantic, they often make this one mistake - assuming one pitch would work everywhere.

The startup environment is different in Europe compared to the US. Here in Europe, we don't have that many funds, VCs, incubators or angels. The way we sell ideas here is also different.

USA - cool tech and growth

The most important part of pitching in the US is to excite potential investors with your technology and growth opportunities. This is partly because many US investors are entrepreneurs themselves and a lot of them are techies. Describing your product idea be sure to stress the innovative tech behind it and why your superior solution will help you grab a substantial market share.

Growth should be at the heart of your pitch. You might not have all the details worked out yet but you should have ideas on how you are going to grow your product and capture a chunky slice of the pie.

Europe - go-to-market and profitability

Investors in Europe tend to be of a different kind. Surely they will be interested in your technology and growth strategy, but even more, they need to see what is their return on investment. Yes, even at an early startup stage, you need to be ready to talk about how you will make money when you pitch in Europe.

It's not uncommon to be asked to bring financial forecasts and in-depth go-to-market plans. You should also expect to hear the "when" question a lot. Be ready to split your business strategy into stages with clear impact mapping for each step of your way to a profitable business.

This of course applies not only to startups but to product management as well. When we try to sell ideas in Europe we often need to create a full business case with detailed plans for delivery and launch. While in the US, we are better off betting on our storytelling skills with a strong visual component. Prototypes go a long way in both places but the way you talk over the prototype needs to be tailored. In the US, more emphasis should be given to user experience while in Europe you need to think about compliance and privacy right from the beginning.

In the US investors tend to be more comfortable with taking on higher risk if the potential payoff is big enough. While in Europe, we prefer to start small, prove the idea is working and then scale it up.

Personal relations and the level of trust between a "seller" and a "buyer" are equally important in both places. In the US, ideas tend to be more important than people who "sell" them, while in Europe it could be the other way around.

Those are only some of the differences I've noticed. Surely every situation and every person is unique hence the best way to "sell" your ideas is to really know your audience and be well prepared.

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