According to a recent study from the National Foundation for American Policy, more than half of the existing U.S.-based startups valued at $1 billion or more were founded by people from outside of the United States.
The United States naturally draws entrepreneurs from around the world, as the vast majority of venture capital dollars are concentrated here. In fact, the U.S. is home to the top six metropolitan areas with the highest levels of venture capital investment worldwide. These cities — San Francisco, San Jose, Boston, New York, Los Angeles and San Diego — account for about 45 percent of the world’s total venture investment.
While the entrepreneurial set is spread throughout the world, the resources to build a company are not.
This is the philosophy upon which
was founded.
VentureOut is a “hyper accelerator” that focuses on helping international startups set up shop in New York. The organization currently operates as a one-week program that aims to connect startups with New York’s top investors and community leaders.
“The size of the tech ecosystems around the world are miniscule in comparison to New York City and San Francisco,” said VentureOut founder, Brian Frumberg. “I realized that the market was inefficient when it came to venture capital and early stage technology companies around the world. I saw an opportunity to try to have an impact on helping companies that are really talented all around the world to take advantage of the opportunities available to them in New York City.”
Frumberg founded VentureOut in 2011 with the hopes of bringing the world’s most promising startups to the U.S. Each month, the company focuses on specific geographic regions where the local tech market isn’t large enough to support companies that need to scale. To date, VentureOut has introduced over 600 internationally-founded startups to the New York tech ecosystem.
To participate in VentureOut’s program, a company must have at least a seed or angel round of funding. If a company is selected to participate in the program, founders fund their own flight and housing accommodations while they’re in New York.
While founders are often paying hefty sums to travel to and attend popular tech conferences such as TechCrunch Disrupt or SXSW, this type of program provides more individualized value to the burgeoning entrepreneur.
VentureOut’s program packs “three months of training and networking into three days.” Throughout these three days, a startup will get connected to leaders in the New York tech community in a one-on-one setting, learn the basics of launching a company into the US market, improve their pitch and participate in a pitch event.
“Using VentureOut, you’re not one of a thousand people sitting at a conference,” said Frumberg. “You get to be at a conference table with 10 other people, telling them about you and your company, and learn from investors directly.”
By the end of the program, VentureOut wants international startups to view U.S. expansion less as an insurmountable feat, and more as an achievable milestone.
“Our goal is not to have another 20 companies come through the program,” said Frumberg. “The goal is to have another 20 companies move to the U.S., build, raise capital, hire people and have an impact here.”
Over the upcoming months, VentureOut plans to launch a three-month version of its one-week program, which will follow an incubator model. The company also hosts conferences and bootcamps abroad, aiming to create additional opportunities for founders looking to scale their company, raise capital and access the U.S. market.
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