Welcome back to the Foreign Founders podcast. Today, we’re covering Semyon (SEM-yon) Dukach (do-cake) ’s article on Crunchbase titled “Hey, VCs: Here are 3 Mistakes You’re Making In Pitch Meetings With Immigrant Founders.”

This is a continuation from last week’s theme of global competition for talent, because Semyon starts out by stating that roughly 80% of graduate students studying computer science and electrical engineering are international students, however, the immigration policies in countries like Canada, Australia and the UK are becoming more appealing and post grads are choosing to live and work outside of the U.S.

He continues.

“By overlooking these would be-immigrants, the U.S. is undermining its own potential and jeopardizing its future as a global leader in innovation.” Mmhmm, I agree. Then Semyon says “I believe fellow venture capitalists are doing the same”

OK! That’s spicy, let’s get into this. “Based on my experience investing in immigrant founders, I’ve noticed three mistakes VCs make in pitch meetings that lead to promising founders slipping under the radar.”

First, VCs are not digging into founder background stories, and immigrant founders are not leaning into their own stories. Because why focus on my own story if the story that’s important is the company’s, like what is the tech behind it and what the go to market strategies are.

Semyon says “when it comes to immigrant founders, however, personal stories tend to reveal the exact qualities needed to survive in times of economic uncertainty. Many have overcome economic or governmental instability, learning a new culture and language, and starting from ground zero.”

I think that’s right, and that’s why I continue to tell immigrant founder stories through Foreign Founders. These are often stories that are untold, but they are fascinating stories of challenges and change.

Second, Semyon says that he finds immigrant founders are often not as good as “selling themselves” as natives. Sometimes it’s cultural or self-protection. ‘From my experience, immigrant founders are less likely to build marginally life-improving products like luxury brands. Instead, they build businesses that have a reason to exist in people’s lives even when budgets are tight.’

His practical advice? VCs should ask founders about their best case scenario in 10 years, or the total size of the potential market to kick start a discussion of the scale without the showmanship.

Finally, Semyon says “what immigrant founders may lack in local networks, they make up for in their ability to navigate unfamiliar systems and their communities abroad. His closing “More than half of the most successful startups in the U.S. were founded by immigrants. Don’t let cultural differences keep you from a smart investment.”

I hope this was helpful not only for VCs but also for immigrant founders. Your story and your background is part of your uniqueness and edge - use it!

Full article:

https://news.crunchbase.com/diversity/immigrant-startup-founders-dukach-one-way

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