What mistakes do European founders make in pitching to US acquirers?

The European tech ecosystem has grown up in the last decade or so. With more serial entrepreneurs, a more diverse VC ecosystem, and more global success stories to emulate such as Spotify, Revolut, Mistral, UIPath, Oura, Klarna and others, there are lots of reasons to be really optimistic about the future for our next generation of innovators.

Unsurprisingly, this is catching the eye of Silicon Valley investors and US strategic acquirers. About a half of European VC exits are to US acquirers, while US investors provide a significant proportion of late stage funding in Europe. But here’s the hard truth: even if you’re building something amazing, getting bought by a big US corporate buyer is still far from simple.

Why? There are a number of reasons, but three of the key ones are cultural differences in marketing, ambition, and storytelling, as set out below.

 

Mistake 1: Marketing: They don’t know who you are

If the first time your potential buyer has heard of you is when you’re starting a sale process, you’re already at a disadvantage. US corporates generally keep active target lists of startups they’re watching or who they are interested in. If you’re not already on that list with your preferred buyers, you’ll face a lengthy process of getting all the internal stakeholders onside, which can seriously delay any process and make it hard to sustain momentum.

How to fix it:

• Invest in great product marketing to ensure your proposition is clear and memorable
• Build relationships long before you want to exit, with the key people in the relevant business units
• Show up at the same conferences as buyers, get on the same RFPs, get coverage from the industry analysts

Many acquisitions follow from strategic or commercial relationships, so that the value proposition is already known to the buyer, so consider whether this could be an appropriate route for you.

 

Mistake 2: Ambition: Your pitch is too conservative

European founders often build forecasts based on certainty of delivery, based on where they are right now. While that sounds reasonable, to a US investor or acquirer it can look like a lack of ambition.

In Silicon Valley, founders confidently pitch moonshot opportunities with bold claims of becoming “the next billion-dollar company.” The buyer will apply their own lens on the reality, but a typically understated European pitch with steady growth that acknowledges the risks and challenges risks being misread as too small.

How to fix it:

• Lead with your vision and ambition, not a lengthy explanation of past history
• Use positive language that confidently asserts your achievements and differentiation
• Be more bold: pitch what you could achieve and where you want to get to

 

Mistake 3: Storytelling: You haven’t got them excited enough

Too many European decks read like product manuals, containing long lists of features and technical jargon. That doesn’t resonate in the US, where acquirers are looking for a story they can get behind that talks about growth and opportunity, showing how you will deliver meaningful impact.

How to fix it:

• Stand out with compelling messages that are relevant to the buyer
• Focus on growth, benefits and ROI, not product features
• Get them excited and leave them wanting to know more

Some basic hygiene factors for a meeting with a US buyer include keeping to time; you may only have 30 minutes but make sure you can deliver your messages in that time without over-running. A good outcome from a first meeting is that they are excited and wanting to know more, allowing you to set up a follow up.

 

The Bottom Line

Breaking into US buyers isn’t easy. You’re competing for attention with hundreds of Silicon Valley startups right on their doorstep. Once you get in the door you have to make it count. But if you show ambition, clarity, and vision, you can stand out.

We’ve successfully advised European founders land strategic exits with some of the world’s biggest tech buyers. Talk to us to see how we can help you.