SEA founders are flocking to the US to pursue their AI ambitions, but many are making costly mistakes.
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IN FOCUS

  • Why Southeast Asian founders have the wrong idea about US expansions
  • From the archives: Meet the SEA founders building startups in the US

Hello reader,

As the AI frenzy rolls on, the US remains the promised land for many Southeast Asian founders hoping to break into the industry.

The US offers deep pools of capital, specialized talent, major customers, and powerful strategic partners, all ingredients that can help a young company scale globally. It is no surprise that AI startups worldwide are looking west.

Frederick Ng, CEO and co-founder of tech immigration platform Beyond Border, argues in today's Insights piece that many Southeast Asian founders are approaching their US expansions the wrong way. Instead of treating it like a short business trip, founders should spend more time in the country to build trust and meet different stakeholders.

According to Ng, many Southeast Asian founders also undervalue their startups when pitching to US investors. Meanwhile, American founders often walk into the room ready to explain why backing their companies could deliver outsized returns.

While the US is a good target market for expansion, it has also become a home base for some Southeast Asian founders.

Our visual story from our archives identified more than 70 of them who are now based in the US, including at least 19 who relocated after building companies in Southeast Asia.

Jofie Yordan, journalist


TOP STORY

What SEA founders get wrong about expanding to the US

US expansion can expose Southeast Asian founders to a different set of expectations around fundraising, sales, and hiring. Failing to understand these differences can create problems even when the underlying business has strong potential.

For founders considering the move, this article points out common pitfalls about expanding to the US and how to navigate them.


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A VISUAL STORY YOU SHOULDN'T MISS

For SEA founders, building in the US comes with big trade-offs

Southeast Asian founders are increasingly choosing not just to expand into the US, but to base themselves there. The concentration of founders in California and the presence of AI startups in the state show how the US ecosystem can shape where companies choose to build.

However, the decision is often driven by more than access to funding. For companies like Eureka Robotics, being physically closer to US customers can shorten sales cycles and unlock much larger contracts, while ADPList's experience shows how establishing a local presence can deepen customer and investor relationships.

For startups building products aimed at global markets, these advantages can make relocation a strategic decision rather than just an expansion.

But relocating comes with significant trade-offs. Founders cited higher hiring costs, tougher competition, visa uncertainty, and the personal challenges of moving their lives overseas.

Some founders are choosing to keep R&D and other functions in Southeast Asia while placing sales, growth, and customer-facing roles in the US, which can help keep labor costs low.


MAKING EVERY TRANSACTION COUNT

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China's next global move

China's next global move

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