Raising capital in the U.S. can accelerate a startup’s growth, but only with the right preparation.
Raising funds in the United States can transform a startup’s trajectory. But scaling in America requires operational and strategic rigor that French entrepreneurs often underestimate. Two experts share their advice.
With larger checks, sophisticated investors, and a market more open to innovation, the United States represents a powerful accelerator for French startups. But U.S. expansion is not something that can be improvised. “It’s counterproductive to try raising there if you don’t yet have any activity in the U.S.,” warns Louis Sautet, Partner at Founders Future. “To maximize your chances, you need to prove the existence of a product-market fit in your home market and start showing real commercial traction in the U.S.,” he adds.
Yoann Brugière, co-founder of Orbiss, an accounting firm specializing in supporting French businesses in the U.S., echoes this caution. “A U.S. fundraising round requires significant resources, both legal and tax-related. It’s an operation that can weaken a company that is still too young,” he explains. In his view, the right timing is when the product has already found its audience in France, the value proposition is strong, and the company has the means to consider a physical U.S. presence.
Structuring Your Presence Before Pitching
One of the first expectations of American funds is legal structuring. “They’re still very attached to the Delaware C-Corp, a corporate status for companies incorporated in Delaware,” explains Louis Sautet. “They tend to view companies still legally based in France with suspicion, fearing tax risk though they are more flexible than they used to be,” he continues. To reassure investors, it is often necessary to create a U.S. legal entity and designate it as the parent company of the group.
This is a process Yoann Brugière knows well. “It involves what we call a ‘flip’: either you create a U.S. holding company into which you contribute the shares of the French entity, or you invert the structure so that the U.S. subsidiary becomes the group’s head company,” he explains. “It’s a complex operation that requires time, strong legal and tax support, and above all a significant budget,” he adds.
But structuring alone isn’t enough. For Louis Sautet, embodiment plays a key role: “One of the founders needs to relocate. Investors want to feel a clear commitment to the U.S. market.” That also means beginning to build a local team, often with a business development focus. The challenge is as symbolic as it is operational. “It’s often easier to get a first meeting in the U.S. than in France. But getting a second one requires flawless execution,” he warns.
Adapting Your Pitch and Strengthening Your Foundations
One of the starkest cultural differences between the two ecosystems lies in pitching. “In France, we value caution, rigor, rationality. In the U.S., they expect vision, big ambition, and strong storytelling,” observes Louis Sautet. “The founder must be able to project the investor into an ambitious growth trajectory sometimes even before the numbers are fully there,” he advises.
This mindset led to the creation of the Rule of 40, a key SaaS industry benchmark. It combines a company’s annual growth rate with its EBITDA margin. If the total exceeds 40%, the company is considered strong: it may grow quickly while losing money, or be profitable with more modest growth.
Despite this apparent tolerance, operational rigor remains critical. Yoann Brugière of Orbiss warns against a kind of accounting laxity sometimes observed: “Unlike France, accounting in the U.S. is not regulated. So it’s common for entrepreneurs to neglect this aspect or outsource it to low-cost providers with no oversight,” he laments. The result: when preparing for a Series A raise, the accounts often need to be completely reworked. “That’s when many come back to us to put things in order. But it’s always more expensive to fix than to structure properly from the start,” he notes.
Surround Yourself with the Right People
On all fronts, it’s crucial to surround yourself with people who know the ins and outs of the U.S. system: lawyers, tax advisors, American peers. Beyond its accounting expertise, Orbiss also supports clients in strategic preparation. “In 15 years, we’ve seen hundreds of projects. Just by reviewing a deck or a business plan, we can often spot the points likely to raise red flags with U.S. investors,” concludes Yoann Brugière.
Finally, fundraising in the U.S. is not a shortcut, it’s a high-stakes operation that demands timing, rigor, and commitment. From choosing the right legal structure to mastering the cultural nuances of pitching, founders must be ready to invest significant resources long before the first investor meeting.
Originally published in French by Maddyness. This article has been translated and adapted for an English-speaking audience. Click here to read the original version.