StartupSmart discusses how companies in isolated countries like Australia and Chile can raise capital:
American finance has two great advantages: more solid valuations of the company and the chance to work with skilled entrepreneurs who have done it before and who can mentor the Australians.
You tend to give away less of the company for more money than you would in Australia and you have access to experienced entrepreneurs, experienced venture capitalists and of course, all the customers and potential acquirers.
Companies in Chile are disappointed with local investors, but it is no different in Australia, according to Michael Overell:
The last few years have seen major US investments in several Australian startups. Huge investments from US firm Accel in Atlassian ($60M), 99 Designs ($40M) and ozForex ($70-110M). Big Commerce ($15M) and Kaggle ($11M) were a few other major wins for local startups with US investors. Interestingly, 99Design’s next competitor, DesignCrowd did secure one of 34 VC investments made last year.
At the ‘earlier’ end of town, the trip to Silicon Valley to pitch for investment has also become a reality. Startmate companies went, and conquered: 3 companies achieved investment from US sources. By the end of the year, one had already been acquired.
From what I understand, the Startmate focus on funding from the US was driven as much by necessity as anything else. The response from local angels to investment opportunities was apparently ‘surprisingly low’.