In this episode, hosts David Rose and Matt Oxley sit down with Maria Palma, General Partner at Freestyle Capital, to discuss the US venture capital landscape from a unique perspective. Maria brings invaluable insights from her decade in venture capital, having worked across three major ecosystems: five years in New York, three years in London, and nearly two years in San Francisco.

Maria shares her unconventional journey from corporate America at GE Healthcare to the venture capital world, offering candid advice for European founders considering US expansion and fundraising. The conversation demystifies the VC landscape, explores the key differences between US and European startup ecosystems, and provides practical guidance on when and how European companies should make the leap to the US market.

Guest Background

Maria Palma is a General Partner at Freestyle Capital based in San Francisco. Originally from Wisconsin, Maria started her career in corporate America at GE Healthcare before transitioning through various startup experiences in India, Brazil, and New York. She earned her MBA from Harvard Business School and has been in venture capital for a decade, uniquely positioned to understand the dynamics of the New York, London, and San Francisco startup ecosystems.

Before venture, Maria scaled a New York ad tech startup to $40 million in revenue and worked extensively with underrepresented founders. She also served on the board of a nonprofit supporting refugee founders in Africa.

Key Topics Discussed

The Journey from Corporate to Venture Maria discusses her transition from managing manufacturing operations at GE Healthcare to discovering her passion for "zero to one" problem-solving. She shares how a friend's observation that she loved helping founders led her to venture capital, despite initial misconceptions about what the job actually entailed.

Demystifying the US VC Landscape Maria emphasizes the importance of understanding "inside baseball" in the US startup ecosystem. She notes that European founders often consume US content without the context that local founders have, leading to unnecessary imposter syndrome. Her key message: if building a company feels hard, that's normal—it's always hard for everyone.

Information Asymmetry Between US and European Founders The conversation explores how US founders benefit from ecosystem density and informal networks that provide real-time intelligence about what's actually working versus what's just marketing. European founders often lack this context due to geographic dispersion across multiple cities and ecosystems.

When Should European Companies Expand to the US? Maria provides a nuanced framework for deciding on US expansion:

• If your customers are primarily in the US (especially for SaaS selling to US enterprises), you should expand to the US
• If your business is geography-specific (like Polish banking rails), US expansion may not be necessary
• The universal advice: if you believe the US is your primary market, don't wait too long—every company she's seen says they should have expanded two years earlier

US vs. European Fundraising Dynamics Maria discusses the evolution she's witnessed in European markets, particularly Paris, where US funds are now actively investing. She notes that having US investors on your cap table provides legitimacy that helps with US talent recruitment and customer acquisition, as sophisticated US hires will recognize and value US fund backing.

Getting to Know US Investors The best time to build relationships with US VCs is when you're not actively raising. Maria encourages European founders to reach out, understand what metrics US investors care about (especially for Series A), and build relationships early.

Maria's Investment Philosophy at Freestyle Capital Maria emphasizes that Freestyle is thesis-driven and focuses heavily on the people side of investing. She looks for founders who can articulate their leadership journey and personal transformation. Her contact process reflects this: she requires founders to share not just their deck, but also how they've changed as leaders.

Advice for European Founders Maria's core message: don't worry too much about what VCs think. If you build a great product that customers love and find a way to grow it, you'll find funding—whether through traditional venture or alternative routes. She encourages European founders to adopt more American optimism and just build what they believe in.

The Future of European Tech Maria is bullish on European tech ecosystems because the best talent is increasingly choosing startups over traditional career paths. She notes that startups offer unparalleled career growth opportunities compared to rigid corporate structures in many European countries, particularly Germany.

Key Takeaways

1. Inside Baseball Matters: US founders benefit from ecosystem density that provides context European founders often lack. Don't assume everything you read about US startups is the whole truth.
2. Timing is Critical: If the US is your primary market, don't delay expansion. Every successful company wishes they had moved two years earlier.
3. US Investor Signal Value: Having US VCs on your cap table provides legitimacy for hiring US talent and acquiring US customers.
4. Build Relationships Early: Connect with US investors before you need to raise, understand their metrics, and get to know them when there's no pressure.
5. Product Trumps Everything: If you build something customers love and find a way to grow it, funding will follow. Don't let VC concerns override your conviction.
6. Adopt American Optimism: European founders should embrace more of the American "can-do" attitude while building their companies.
7. Talent Flow is Changing: The best talent in Europe is increasingly choosing startups, which is fundamentally strengthening European tech ecosystems.
8. Be Thoughtful About Contact: When reaching out to investors, follow instructions and demonstrate you've done your homework. Maria values founders who can articulate their leadership journey.

Notable Quotes

On the VC landscape: "If it feels hard, it's not you. That is just what it always feels like."

On US expansion timing: "Every company that I've seen come from the US to Europe...that ultimately knew their market was in the US, every single one has told me we should have done that two years earlier."

On fundraising philosophy: "If you build a great product that your customers love and you find a way to grow it, you will find a way to get money. Traditional venture, not traditional venture or whatever."

On European tech's future: "I think the most important thing for European tech no one's even talking about, which is that all the best talent is falling into tech...there is no better career path for anyone in Europe than a startup."

On founder mindset: "Don't listen too much to what VCs say. And if you really believe in building this, like this is where I'll bring some optimism. Just build it. You'll be fine. You'll figure it out."

Connect with Maria Palma

Visit the Freestyle Capital website...