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If you thought your best chance at building a successful startup meant that you had to move to another country, where would you start? How would you get your customs paperwork lined up, find housing, learn the local ropes for everything from establishing a business entity to finding proper insurance?
It's not the type of thing most people would want to tackle alone.
That's where the Austin-based International Accelerator comes in. It paves the way for qualified foreign-born startup founders who want to make a go of it in the United States.
And a large part of that journey comes down to one man and his West Austin house.
Angelos Angelou founded the International Accelerator in 2014, and since then he has helped dozens of entrepreneurs build successful companies in this country. Many of them stay in his home during their first three months. They cook and clean together. Hang out at the pool together. Find investors together, and continually iterate on business ideas.
Several of those companies have gone on to build multimillion-dollar companies, such as Schoox and Restream.io, which have $100 million-plus valuations. Now, after years of experience, Angelou is teaming with investor Nikos Iatropoulos to launch a new investment fund under the IA Global Ventures LLC banner.
The $50 million pre-seed fund is exclusively dedicated to foreign-born entrepreneurs launching U.S.-based companies, mostly in Austin. It is effectively a sister fund to the International Accelerator. They plan to make initial investments between $500,000 and $1 million, with additional follow on investment available from the fund or through the organization's networks with outside investors.
IA Global Ventures is mostly interested in software-oriented businesses, including AI, fintech, medtech, education and cybersecurity, although it considers other sectors on a case-by-case basis. The accelerator has managers in several countries who help source companies that might be a fit, in addition to online startup competitions and cold outreach.
The new fund is in the process of being raised, with its first close likely happening later this month. It is largely backed by family offices and high-wealth individuals. While it will often invest in companies that go through IA's 12-month program, it will also consider non-accelerator companies that it has looked at closely.
One of the fund's first investments will be in a Romanian company that Iatropoulos encountered during South By Southwest.
In 2022, the accelerator had more than 6,000 applications for the 12 spots in its program. Years ago, the accelerator developed a small fund to back companies that it works with. That fund tripled its initial investment, and, as of a couple years ago, it had returned five times the value of the investment, Iatropoulos said.
The new fund builds on the accelerator's track record, and it is a big bet on the fortitude of founders who often leave their homes and loved ones behind to create new business opportunities and generational wealth.
"A foreign-born entrepreneur will never tell you 'well, I raised $5 million. I lost it all. But I learned something,'" Angelou said. "They have to make it. Failure is not an option. And they're frugal. They're very competent technologically. And I think it's that persistence, determination and the hunger to succeed in the U.S. that makes all the difference in the world."
Iatropoulos was previously an investment banker and software entrepreneur in Los Angeles. After selling his third business there, he moved to Austin about seven years ago and connected with Angelou through fellow Greek entrepreneurs in the area. He then became a mentor at International Accelerator.
"There is a tremendous amount of innovation happening by immigrants," Iatropoulos said, noting that foreign-born founders have started or lead some of America's most successful companies.
For example, a 2022 study by the American Immigration Council found that about 44% of Fortune 500 companies were founded by immigrants or their children.
"They work really hard, they're dedicated, they're going to persevere," he said. "Basically failure is not an option. They burn the boats, and they have to survive. And you see that in their success."
Total No. of companies to go through program since founded
| Rank | Prior Rank | Company name |
|---|---|---|
1 | 1 | Economic Growth Business Incubator (EGBI) |
2 | 2 | Capital Factory |
3 | 3 | Founder Institute Texas |
