A few days ago, I asked if anyone had questions about AppSignal‘s recent funding round. Stanislav Katkov responded: “Have you considered raising from EU investors? Did you have to incorporate in the US after raising with US investors?”

We spoke with several potential partners, some based in the US and others in the EU. A few were clearly not the right fit from the beginning, while others stayed in the running much longer. Ultimately, we made our decision based on cultural alignment, market expertise, experience, and deal terms.

Staying within the EU might have made things easier. Legally, but also because coordinating across time zones created delays and a few late nights on our side. Currency exchange fluctuations added some extra complexity as well. Still, Elsewhere Partners turned out to be the best fit for us. From the outset, we agreed not to exclude any investor solely based on location.

Yes, we did incorporate in the US to facilitate this deal. It wasn’t something we had planned to do just yet, but it was always going to be necessary eventually. We already serve plenty of customers in the US, but a significant number of potential customers are hesitant to work with a European entity. They often cite reasons like HIPAA compliance – which, to be clear, doesn’t require a US entity or data residency, and we are already compliant – as well as internal company policies prohibiting them from doing so.

By setting up a US entity alongside our existing Dutch one, we’re now in a stronger position to support both our European and American customers equally well. That’s also why we’re beginning to hire Customer Success team members in the US over the coming weeks, to ensure local support coverage in line with these growth plans.

TL;DR: Raising from an EU investor might have been simpler, but Elsewhere Partners is a great fit, and our US expansion significantly increases our addressable market.