The 3 Biggest Pitfalls When Raising Funding in the US (and How to Avoid Them)
Expanding to the US is a bold move for any Dutch founder or scale-up—but securing American investment brings its own unique challenges. Many European entrepreneurs underestimate just how different the US funding landscape can be. Here are the three most common pitfalls, along with practical tips and real-life insights to help you sidestep them.
1. Insufficient Preparation for Legal & Tax Requirements
The Pitfall:
US investors expect a solid legal and fiscal foundation. Too often, Dutch founders approach US funding rounds without the right corporate structure or a clear compliance strategy. For example, most American VCs require a Delaware C-Corp (INC), and expect you to be ready for US tax, reporting, and regulatory obligations from day one.
US investors expect a solid legal and fiscal foundation. Too often, Dutch founders approach US funding rounds without the right corporate structure or a clear compliance strategy. For example, most American VCs require a Delaware C-Corp (INC), and expect you to be ready for US tax, reporting, and regulatory obligations from day one.
How to Avoid It:
- Set up a Delaware INC: This is the gold standard for US investors. It signals you’re serious and makes due diligence much easier.
- Get your compliance in order: From IRS registration (EIN) to state filings, be proactive and get expert advice on cross-border tax implications.
- Case in Point: We’ve seen promising Dutch scale-ups lose momentum because they delayed their US legal setup—only to find investors walking away due to uncertainty.
2. Underestimating the Importance of Local Presence
The Pitfall:
Many founders believe a US address or mailbox is enough. In reality, American investors want to see genuine commitment to the market: a real office, a local team, and early US traction.
Many founders believe a US address or mailbox is enough. In reality, American investors want to see genuine commitment to the market: a real office, a local team, and early US traction.
How to Avoid It:
- Open a US office: Even a flex office in New York or Miami can make a difference.
- Build a local team: Consider hiring US-based staff or appointing a US advisor.
- Show traction: US clients, partnerships, or pilots demonstrate you’re already making inroads.
- Example: One of our clients secured a multi-million dollar round after hiring their first US sales rep and landing a key American customer.
3. Pitch & Storytelling Not Tailored to US Investors
The Pitfall:
Dutch founders are often too modest or focused on technical details. US investors expect bold vision, clear market opportunity, and a compelling growth story. If your pitch doesn’t excite or isn’t adapted to the US context, you’ll struggle to stand out.
Dutch founders are often too modest or focused on technical details. US investors expect bold vision, clear market opportunity, and a compelling growth story. If your pitch doesn’t excite or isn’t adapted to the US context, you’ll struggle to stand out.
How to Avoid It:
- Think big: Emphasize your ambition and the size of the US opportunity.
- Sharpen your story: Focus on scalability, market fit, and why your team can win in the US.
- Get feedback: Practice with US mentors or advisors who know what VCs want to hear.
- Example: We’ve helped founders rework their pitch decks—shifting from product specs to a vision-driven story—which led to immediate upticks in investor interest.
How Van Holland Capital Helps You Avoid These Pitfalls
At Van Holland Capital, we specialize in guiding Dutch scale-ups through the US funding maze. Our approach:
- Intake & Assessment: We start with a thorough intake and advisory report, so you know exactly where you stand.
- US Entry Commitment Package: We handle your Delaware INC setup, help you secure a New York office, and guide you through compliance.
- Pitch & Investor Readiness: Our experts help you craft a pitch that resonates with US investors—and open doors to our network.
- Practical Support: From legal to local hiring, we’re with you every step of the way.
Curious how we can help? Download our whitepaper or book an intake session to get started on your US funding journey—without falling into the common traps.
