Funding in the UK is tough - is a move to the USA smart?

searcher profile

October 31, 2024

by a searcher from University of Oxford in Reading, UK

Hi Search Funders

Raising funds in the UK is tough; even with an established business, all debt options want personal guarantees. It is hard to take on a lot of personal risk and allocate all of your time to a company, and I want to grow without the risk of individual financial ruin.

Does anyone in the USA have any debt raising experience, and what personal guarantees are required?

thanks

Peter

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commentor profile
Reply by a searcher
from Stanford University in London, UK
Previous commentators, including ^redacted‌, are accurate in saying that preferential loans, including SBA loans, are available only to US citizens and greencard holders. However, you might consider talking to Nova (https://www.novacredit.com/resources/international-credit), which was founded by my classmate and which allows you to "port" your UK/overseas credit history to the US. Perhaps this would be a way for you to secure the necessary US loan.
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Reply by an investor
from University of Birmingham in London, UK
I would largely echo your sentiment Peter. There's a general consensus that it is much more difficult to raise equity funding (and to a lesser extent debt funding) in the UK than in the US within the search space. Those in the UK that are successful in raising equity tend to overwhelmingly be from 'Old Money' networks, which isn't the case in the US.

If you have the opportunity to search in the US you should certainly explore it as an option
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