Making the decision to pursue a US strategy

Should I stay or should I go?

Before developing a US entry strategy, your leadership team, with the support of your investors, must confirm that doing so is the right choice. Recognise that going to the US requires a substantial investment of time, money and resources. If you do not wholeheartedly see the opportunity nor embrace it, then the effort will eventually fail.

Factors in favour of going to the US

The existence of motivated management team that is hungry to grow

The favourable US market size

The potential to capitalise on a first-mover advantage

The presence of investors interested in acquiring technology like yours

Industry-specific advantages (for instance, the US is the largest worldwide market for medical products and services)

The US’s culture of innovation

Access to the US’s deeper start-up ecosystem and talent pools

Access to talent that may come with fewer long-term contracts and entrenched attitudes

Greater deal velocity in many sectors

Factors that suggest delaying a US entry

The inability to sustain the costs of making a serious play in the US, including the requisite leadership travel, on-site office expenses, US employee salaries and more

Existing market saturation of your offering in the US

The existence of other markets you should attempt before the US

The potential for challenges associated with the more litigious nature of the US, including required compliance with state-specific legislation such as the California Privacy Rights Act (CPRA)

An imminent exit in the next 2-3 years

A move that is being driven by investors, not management

If you have no inbound interest from US-based customers

Not yet sought professional legal, immigration and financial advice on establishment

One of the phenotypes I noticed as an investor, and as a banker, was that companies did well if the CEOs and leadership teams were always committed to being in the markets they were targeting. They didn't hang back.

John Milad, CEO - ERS Genomics