INSIGHTS
US startups tend to begin with a "global mindset," which makes it easier to transition to global reach.
US startup success stories (such as GoPro) gives investors confidence in potential ROI.
The World Bank annual ratings indicate the US ranked 6th among 190 economies in the ease of doing business in 2017.
FINDINGS
United States tech startups have several advantages in obtaining international exposure, particularly through business relationships and financial support. Mindset, guidance and partnerships, funding, distribution, growth, and exposure all contribute to startup success. As a result, US startups have a higher success rates than any other country, to the point where developers and investors from other countries begin or move their startups to the US.
US startups tend to begin with a "global mindset," which makes it easier to transition to global reach.
US startup success stories (such as GoPro) gives investors confidence in potential ROI.
The World Bank annual ratings indicate the US ranked 6th among 190 economies in the ease of doing business in 2017.
FINDINGS
United States tech startups have several advantages in obtaining international exposure, particularly through business relationships and financial support. Mindset, guidance and partnerships, funding, distribution, growth, and exposure all contribute to startup success. As a result, US startups have a higher success rates than any other country, to the point where developers and investors from other countries begin or move their startups to the US.
MINDSET
Mindset significantly affects a startup's trajectory. US startups operate from the beginning with "every intention of going global." To succeed, entrepreneurs must start with a "global mindset," making efforts to retain top performers and viewing competitors "as assets instead of enemies."
GUIDANCE
US startup hubs such as Silicon Valley provide easy access to endless resources. In these hubs, startups can identify and secure partners for information and guidance, which can "make or break [a] tech offering." Silicon valley in itself is a place where renowned companies like Apple and Google are located. These companies have venture capital subsidiaries such as Google Venture that are seeking out innovative startups to not just advice but invest in. One larger companies add these startups to their portfolios, international exposure becomes inevitable.
FUNDING
Securing financing is not always an easy task. However, success stories have given investors the confidence that their money could yield high returns. For example, GoPro only needed $10,000 at the time they began and is now a billion-dollar company. Examples like GoPro make it easier to secure money from friends and family.
Raising money is "pivotal in the success or failure" for startup ventures, regardless of the business's country of origin. Outside the US, most startups face limited funding options, despite increased popularity of "crowdfunding and presales" strategies. Europe, for example, offers many options for early-stage business funding but "is not blessed by access to growth stage funding."
Innovation is key when securing funding; if potential investors get excited, they are "more likely to bet on [the] tech company." Once the excitement spreads, potential partners and venture capitalists from several parts of the world are more likely to come to the table.
DISTRIBUTION
The US houses distribution giants and wildly successful companies that could be valuable partners for startups. App stores such as Amazon, Apple, Google, and Facebook are US-based. Google's search engine optimization offerings can expand a company's reach to anyone with internet access. Distributors such as Amazon and OpenTable are also US-based.
GROWTH/EXPOSURE
US startups tend to "launch with a boom" as a result of media exposure. This results in thousands of customers after launching and a continued growth trajectory. The ultimate goal is to grow "as long as they can on the hope that the momentum will be enough to reach critical mass."
INTERNATIONAL STARTUPS MOVE TO THE US
Companies started overseas establish themselves in local markets, then often move "key business functions" to the United States. Once stable, these countries transition to be "more U.S.-centric." Some go as far as to change their legal status to a U.S Delaware C-corporation. Some companies begin as "bi-national," with their leadership and sales divisions in the US and their engineering and support overseas.
US Immigration Services is in the process of finalizing a “Startup Visa” program to assist overseas entrepreneurs in launching startups in the US. The US has also started an initiative to connect international VCs with US startups.
Mindset significantly affects a startup's trajectory. US startups operate from the beginning with "every intention of going global." To succeed, entrepreneurs must start with a "global mindset," making efforts to retain top performers and viewing competitors "as assets instead of enemies."
GUIDANCE
US startup hubs such as Silicon Valley provide easy access to endless resources. In these hubs, startups can identify and secure partners for information and guidance, which can "make or break [a] tech offering." Silicon valley in itself is a place where renowned companies like Apple and Google are located. These companies have venture capital subsidiaries such as Google Venture that are seeking out innovative startups to not just advice but invest in. One larger companies add these startups to their portfolios, international exposure becomes inevitable.
FUNDING
Securing financing is not always an easy task. However, success stories have given investors the confidence that their money could yield high returns. For example, GoPro only needed $10,000 at the time they began and is now a billion-dollar company. Examples like GoPro make it easier to secure money from friends and family.
Raising money is "pivotal in the success or failure" for startup ventures, regardless of the business's country of origin. Outside the US, most startups face limited funding options, despite increased popularity of "crowdfunding and presales" strategies. Europe, for example, offers many options for early-stage business funding but "is not blessed by access to growth stage funding."
Innovation is key when securing funding; if potential investors get excited, they are "more likely to bet on [the] tech company." Once the excitement spreads, potential partners and venture capitalists from several parts of the world are more likely to come to the table.
DISTRIBUTION
The US houses distribution giants and wildly successful companies that could be valuable partners for startups. App stores such as Amazon, Apple, Google, and Facebook are US-based. Google's search engine optimization offerings can expand a company's reach to anyone with internet access. Distributors such as Amazon and OpenTable are also US-based.
GROWTH/EXPOSURE
US startups tend to "launch with a boom" as a result of media exposure. This results in thousands of customers after launching and a continued growth trajectory. The ultimate goal is to grow "as long as they can on the hope that the momentum will be enough to reach critical mass."
INTERNATIONAL STARTUPS MOVE TO THE US
Companies started overseas establish themselves in local markets, then often move "key business functions" to the United States. Once stable, these countries transition to be "more U.S.-centric." Some go as far as to change their legal status to a U.S Delaware C-corporation. Some companies begin as "bi-national," with their leadership and sales divisions in the US and their engineering and support overseas.
US Immigration Services is in the process of finalizing a “Startup Visa” program to assist overseas entrepreneurs in launching startups in the US. The US has also started an initiative to connect international VCs with US startups.
Overseas startups that relocate to the Silicon Valley area have access to several organizations for guidance (e.g., Founders Space, 500 Startups, and Wearable World).
MEASUREMENTS OF SUCCESS
Number of Startups: Historically, the US has been home to more startups than any other country, with more than 10% of the working-age population starting new business plans. The U.S. boasted the "highest entrepreneurship rate" among select North American, European, and Asian countries in 2013.
Difficulty: The World Bank annual ratings indicate the US "ranked 6th among 190 economies in the ease of doing business" in 2017, an improvement from their 2016 ranking at number 8.
Venture Capitalists (VCs): As of 2016, 54% of global VC investments were allocated to startups in the US, indicating that the US remains the "center of the VC industry."
MEASUREMENTS OF SUCCESS
Number of Startups: Historically, the US has been home to more startups than any other country, with more than 10% of the working-age population starting new business plans. The U.S. boasted the "highest entrepreneurship rate" among select North American, European, and Asian countries in 2013.
Difficulty: The World Bank annual ratings indicate the US "ranked 6th among 190 economies in the ease of doing business" in 2017, an improvement from their 2016 ranking at number 8.
Venture Capitalists (VCs): As of 2016, 54% of global VC investments were allocated to startups in the US, indicating that the US remains the "center of the VC industry."
STARTUP PROFILES
CASTBOX
US startup Castbox's founders (Renee Wang and Shibin Li) and investment sources (IDG Capital, Qiming Venture Partners, and SIG China) were all based in China. Castbox is a "global podcast platform" that links users with audio content in several languages. Its tech "includes features like curated podcast recommendations and in-audio deep search to customize the listening experience." Castbox is headquartered in the San Francisco Bay Area, California.
SLACK
Slack, a US-based startup, is primarily funded by Start Up Softbank in Japan. Slack is a communication platform designed for businesses. Slack is headquartered in San Francisco, California.
CONCLUSION
The US is one of the best locations to launch a startup, as evidenced by historical successes and frequent relocation of overseas startups to the US. Most venture capitalist funds go to US-based start-ups, and many US startups receive funding from overseas agencies.
US startup Castbox's founders (Renee Wang and Shibin Li) and investment sources (IDG Capital, Qiming Venture Partners, and SIG China) were all based in China. Castbox is a "global podcast platform" that links users with audio content in several languages. Its tech "includes features like curated podcast recommendations and in-audio deep search to customize the listening experience." Castbox is headquartered in the San Francisco Bay Area, California.
SLACK
Slack, a US-based startup, is primarily funded by Start Up Softbank in Japan. Slack is a communication platform designed for businesses. Slack is headquartered in San Francisco, California.
CONCLUSION
The US is one of the best locations to launch a startup, as evidenced by historical successes and frequent relocation of overseas startups to the US. Most venture capitalist funds go to US-based start-ups, and many US startups receive funding from overseas agencies.