Venture capital is an obvious opportunity to finance the activities and expenses that a start-up company needs in order to scale. In addition to the capital, VC funds can also help start-ups access their local network, qualified advisors, and a portfolio of other (perhaps similar) start-ups in which the fund has invested.

But venture capital is a high-risk form of investment where the company often gives up a significant stake. The investor typically wants to have a say in decisions, such as which activities should accelerate the number of users on a given platform, or how the path to exit should eventually be reached.

For an early-stage company, it may be relevant to consider other avenues for investing - such as accelerator programs, or so-called angel investors.

Start-up accelerators help early-stage start-ups and typically invest between five and ten percent in a start-up at a “seed stage”, as some of the very first investments are referred to.

Accelerator programs provide mentorship and training to the company's founders, and a startup typically becomes part of a course of training and development for three to six months. Accelerator programs are especially good at helping with branding, product development, and go-to-market strategy– they know all about how to accelerate the business.

Silicon Valley is home to many great accelerator programs, including Plug’n’Play, Berkeley SkyDeck, and 500 Startups. A well-known Silicon Valley accelerator is the Y-Combinator, which invests $125,000 for seven percent of the company and takes its start-ups through a three-month program. Since 2005, Y-Combinator has invested in over 3,000 start-ups, including successful start-ups such as Stripe, Airbnb, and Coinbase.

However, it is not easy to get through the eye of the needle at some of the most sought-after accelerator programs in Silicon Valley, as they receive many applications. In addition, start-ups’ should consider whether they are willing to invest the time it requires as accelerator programs are time-consuming and intense.

Another place start-ups can look to in their search for investments is US angel investors.

Angel investors are often wealthy private investors who invest in the seed stages. Compared to VC investments, angel investors usually provide smaller sums, but the percentage of the company that the founders must give up is accordingly smaller.

The advantages of raising investments through angel investors include that the requirements and administrative work that come with the investment typically are lower than with venture capital investments.

Another great advantage is that angel investors often are, or have been, entrepreneurs themselves, so they may have a great deal of personal experience and a network with which they can contribute.

The downside of the medal may in some cases be that the investor would like to have a greater influence on the company's decisions.

It is therefore not only venture capital that may be relevant to investigate for Danish early-stage companies in Silicon Valley - but right now entrepreneurs also have access to more forms of investment and more strategic help than ever before.

While a lot of investment goes through Silicon Valley, the investment environment is very competitive at the moment, which is an advantage for entrepreneurs.

This makes them better off in negotiating situations when it comes to raising capital, and it makes it more likely that one can find an investor that matches the company's business philosophy.

In April 2022, ICDK invites startups to Silicon Valley to the program: Founders Summit 2022. Here, selected companies will be able to get feedback on their business model, pitch, and much more from Silicon Valley mentors, experts, and investors.