US growth is an Australian startup’s dream.
As a Californian expat and founding father of a 24-week US-expansion Melbourne accelerator and Silicon Valley touchdown pad to organize Australian startups for the leap, and assist them as soon as they’re there, I see the attraction.
I’m not alone: 61% of Aussie startups mentioned the US was prime of their growth plans, adopted by Australia, the UK, NZ and India, in accordance with the 2024 Startup Muster survey.
Nonetheless, in accordance with Startup Muster 2024, the US is the second-largest buyer base for Aussie startups, after Australia itself. But 42 per cent of startup failures stem from an absence of market demand, and Australian assumptions typically misalign with US preferences, risking irrelevance. With a market that shut, but so crucial to Australian startups, it’s no surprise the leap nonetheless feels daunting.
So I turned to our Oz2US Australian and US growth consultants, mentors, VC advisors and Australian founders who’ve efficiently scaled to the US and requested them: “What are one of the best belongings you’ve seen Australian startups do to efficiently launch and scale within the US? What are the worst errors you’ve seen startups make or skilled which have led to failure, setbacks, or retreats? And what’s the one piece of recommendation you might have for Australian founders contemplating increasing to the US?”
Right here’s what they mentioned:
Trena Blair
CEO, FD World Connections and Founder/CEO, FD World Academy, Sydney, NSW
Trena Blair
The perfect
“In over a decade of guiding worldwide scaleups to increase into the US, I’ve seen ambition soar – and crash. The distinction between the 2 typically comes down to at least one deceptively easy precept: operational immersion.The perfect leaders have learnt the artwork of delegation – and set up a simple delegated authority course of that empowers their staff to function successfully with out fixed oversight. This offers the chief the house and focus required to drive international development.
With that basis in place, probably the most impactful step I’ve seen founders take to reach the US market is that this: they spend significant time out there to grasp it.
The US isn’t one market—it’s 50. Every state has its personal tradition, rules, buyer expectations, and methods of doing enterprise. What lands nicely in California could miss solely in Georgia. What good points traction in Chicago may stall in Seattle. Founders who succeed immerse themselves. They hear. They take a look at. They be taught. And critically – they adapt.”
The worst
“The fly-in-fly-out mannequin with out a longer-term plan. It’s tempting – particularly for resource-constrained companies – to attempt to make magic occur over every week of conferences. However partnerships, clients, and investor belief aren’t constructed on Zoom or drive-by networking occasions. US enterprise is relationship-driven, and relationships require a founder-led, boots-on-the-ground method. Founders who delegate this to others, or deal with US growth like a facet undertaking, virtually at all times stall – or fail.”
Recommendation
“Draft your market entry technique first – then take a look at it out there. Which means strolling the streets, assembly with clients, negotiating with companions, and absorbing the cultural and regulatory nuances firsthand. Your technique is just not static. It ought to evolve as your data deepens; immerse your self with a strategic and operational lens.”
Alan Jones
Founder, Basic Associate, M8 Ventures, Sydney, NSW
Alan Jones
The perfect
“Startups that spend important time on the bottom within the US constructing relationships earlier than they want them. Those that succeed don’t simply fly over for a number of pitch conferences – they spend money on understanding the market deeply and constructing real connections.
Those who do fly over ought to begin reaching out to get conferences two months earlier than they really land — it’s costly to journey there so each hour you spend within the US not assembly potential contacts or travelling between them is time wasted and costly.”
The worst
“Underestimating how completely different the market really is. Australian startups typically assume they will simply copy-paste their native method, however buyer behaviour, gross sales cycles, regulatory atmosphere – it’s all completely different. Don’t neglect it’s unlikely that US execs can have even heard of any giant Australian organisations apart from Canva, Atlassian, Qantas and Westfield (Scentre Group) — our largest banks, retailers, insurers, and telcos are nonetheless virtually unknown within the US. The most important shock could also be how willingly and quickly giant US organisations could comply with run a small business pilot or POC in comparison with their Australian friends — ensure you have the capability to service the POCs you pitch for earlier than you pitch.”
Recommendation
“Don’t rush it. Take time to essentially perceive your goal buyer within the US context earlier than you commit important assets. And discover native advisors who know your particular sector.”
Josh Pugh
Founder, Govt Director, America Josh, New York, NY
Josh Pugh
The perfect
“The perfect factor I’ve seen startups do to launch efficiently and scale is to hearken to their neighborhood and actively interact with it. Typically, we see manufacturers speaking about neighborhood as if it had been vital, however not listening to or responding to the suggestions and criticisms that come from it. There’s energy in numbers, and whereas it mustn’t at all times be adopted rigidly, it ought to at all times be included as a part of the dialogue.”
The worst
“The worst factor I’ve seen has been scale with out capability. The US’ giant market is a double-edged sword, and whereas it brings the opportunity of wild success, it additionally has the potential to depart founders chasing targets they’re not prepared for. A staged and regular method to the market, and sticking to these rules, is vital for long-term success.”
Recommendation
“The perfect recommendation I’d give is to immerse your self in neighborhood and begin with a centered market. The US is like 50 completely different nations rolled into one, and inside every of these areas are distinctive hubs of innovation, tradition, and communication. Whereas Australian markets are typically extra homogeneous, the US market values individualism and, importantly, prefers messaging that’s customised to every viewers. New York is just not San Francisco, not to mention Phoenix.”
Russ Macumber
Cofounder and Managing Director, Spectacular Digital, Austin, TX
Russ Macumber
The perfect
“Select a distinct segment and an ICP and develop GTM religiously round that area of interest market.”
The worst
“The other: are available in as a generalist, work with anybody who’ll pay, not slim down their perfect buyer after which surprise why they’ve churn, inefficient resourcing, obscure worth prop, and an early flight again house.”
Recommendation
“For service suppliers, select a mid-size metropolis (1m–5m folks) and goal to be the one answer that serves that market together with your service, that everybody is aware of. Slender and deep… for tech/broader suppliers, identical rationale however slim and deep into a particular area of interest and ICP. Develop into the go-to answer, construct an adjoining associate community to gasoline the flywheel. Slender and deep. The nation is just not one market, don’t deal with it as such.”
Jason Seed
Working Associate, Scalerr Advisory, Palo Alto, CA
Jason Seed
The perfect
“After doing deep analysis and getting an understanding of the market and the chance, they commit. It’s a must to get ft on the bottom and begin working from inside this market to essentially take it on.”
The worst
“Rent a ‘gross sales particular person’ from afar and simply anticipate success. It takes time to search out one of the best match for your corporation and it is advisable first form the product, the advertising and the gross sales course of for the US. You can’t anticipate a salesman to achieve success with the playbook you used at house.”
Recommendation
“Get right here, have 100 cups of espresso over three months.”
Jason Sales space
President and CEO, Tax Studio, Austin, TX
Jason Sales space
The perfect
“Having persistence with the US tax system. It’s gradual, it’s archaic. It requires a moist signature and generally cheques are issued or required to make cost. The correspondence can typically instances be by mail and never electronic mail, and so on. Having a strong bodily deal with, having persistence and having a very good staff round is one of the best factor.
Operationally, I do assume discovering a focused variety of states to function in is an efficient factor – e.g., our development plan is to rent 20 folks within the US. Ensure this isn’t 20 folks in 20 completely different states. Make it 5, choose 5 and keep it up. Rent future hires then, in these chosen states. Assist decrease that admin burden. Being compliant in Arkansas is perhaps extra of a headache than Colorado and but not a strategic rent in Arkansas. Actually good to consider location of rent from the beginning.
This may help drive down employment regulation points, authorized charges, admin burden, compliance prices, tax publicity, gross sales tax obligations, and so on.”
The worst
“The ‘WORST’ is a tricky one to nail right down to only one factor. I’d provide you with a few points that we see and see extra typically than we want:
First, organising an organization, beginning to commerce and never being compliant. US tax authorities (the IRS) impose steep penalties for failure to well timed file tax returns involving transactions with foreign-related entities – these may be as excessive as $25,000 per submitting per yr. They are often triggered no matter whether or not the general group is worthwhile. We’ve seen this time and time once more – from only a one-time offence to $400k+.
One other one is entering into employment/labour regulation points with a brand new rent (not offering one thing they promised, not adhering to state-level guidelines on sure issues, and so on.). These won’t be catastrophic, however we’ve seen it occur fairly a bit that the primary rent doesn’t work out, there isn’t any plan B, and the corporate is ready to retreat again to Australia and hit the reset button.
Flipping into the US prime Co not because of a fundraise however doing it for maybe different causes (appears to be like ‘cool’, in hopes of fundraising and so on.) is one other pitfall. Getting IP trapped into US mother or father firm construction is just not typically an incredible US tax reply, and flipping into the US must be pushed by fundraising.”
Recommendation
“Get your trusted companions lined up early. I consider growth from US tax advisory and compliance in 4 phases:
- Stage 1 is ‘I’m curious’.
- Stage 2 is ‘planning mode’.
- Stage 3 is ‘early reactive’ (e.g., simply shaped an organization).
- Stage 4 is ‘very reactive’, and the corporate has been working or in existence for a while.
I really like speaking to shoppers and getting locked in at Stage 2 – ‘let’s plan’. Get snug that you’ve got most (not all) lined by way of assist. Tax, authorized, and maybe insurance coverage pending the enterprise, enterprise advisors who perceive US growth. It’s a considerably easy reply however the work will get carried out in constructing the plan of assault to enter the US market.”
Ben Wunderman
(Australian) Cofounder and CEO, Packsmith, San Francisco, CA
Ben Wunderman
The perfect
“Work to grasp and section the aggressive measurement and scale of the market within the US.”
The worst
“Assuming that the US is like Australia as a market (not doing one).”
Recommendation
“Perceive why you might be coming into the market and get ready — work with the appropriate companions, buyers, and fellow founders to execute the transfer cleanly.
One of many recurring challenges with Australian startups trying to break into the US market is a elementary misstep in market understanding. Some Australian founders do the onerous work to deeply perceive the dimensions, segmentation, and geographic dynamics of the US—a market that isn’t solely 15x bigger but additionally extra competitively complicated. However many skip this step solely, working below the harmful assumption that the US is just a scaled-up model of Australia’s home market. It’s not. The client expectations are completely different, the gross sales cycles are longer (or quicker), the capital markets are extra aggressive, and the competitors is relentless.
Earlier than coming into the US market, startup founders should be brutally clear on why they’re increasing—what the US gives that the Australian home market doesn’t—after which put together their enterprise accordingly.
Which means surrounding your self with the appropriate buyers, native companions, and different founders who’ve carried out it earlier than or who perceive how it’s carried out greatest. The US rewards startup focus and precision with an enormous TAM. However Australian startups must do their homework first.”
Trent Scheirs
Cofounder and director, Grant Assist, Melbourne, VIC
Trent Schiers
The perfect
“The neatest factor I’ve seen founders do is leap on a airplane and spend time on the bottom earlier than going all in. Lots of people attempt to scale too early or from a distance, however the ones who win are those who deal with it like a correct recon mission. They meet with potential clients, distributors, or companions, they usually get a really feel for whether or not there’s actual demand earlier than they begin burning severe money. Particularly for product-based companies, the place logistics, compliance, and fulfilment can get costly rapidly, doing that upfront analysis and validation makes all of the distinction. Those that take the time to grasp the regulatory panorama and arrange relationships forward of a full-scale launch are likely to scale quicker and keep away from a number of the early stumbles others make by diving in blind.”
The worst
“ The worst transfer I see, which occurs extra typically than you’d assume, is when a enterprise that’s not even strong in Australia decides that going offshore will magically repair their issues. When you’re already struggling right here, attempting to crack a much bigger, extra aggressive market is just not typically one of the best answer. The prices are increased, the training curve is brutal, and with out a confirmed mannequin or robust native traction, you’re flying blind together with your burn fee climbing quick. 9 instances out of ten, they find yourself retreating with much less money and extra stress. The lesson? Nail your own home market first, construct actual traction, show product-market match, get your ops tight, then take into consideration increasing globally.”
Recommendation
“Zoom out and perceive the macro. Too many founders are so deep within the day-to-day that they neglect the worldwide forces shaping their trade. Proper now, with the USA throwing up new tariffs, a variety of nations are discovering it close to not possible to remain aggressive within the US market, which suggests they’re wanting elsewhere. These nations have now shifted their consideration to the Australian and the UK markets. We’ve obtained comparable shopping for behaviour, aligned values, and we’re not matching those self same tariff hikes.
However right here’s the kicker – due to that, Australia and the UK are already being flooded with low-cost merchandise. That’s placing actual stress on Australian companies, particularly those that pleasure themselves on high quality. So should you’re not serious about offshore markets now, you’re in all probability already behind. You possibly can’t watch for the squeeze after which react; you’ve obtained to be proactive.
One of many smartest issues you are able to do is faucet into the assist that’s already there. The Export Market Improvement Grant offers you as much as $80k a yr in matched funding to gasoline your international development — and but most founders don’t even understand it exists. When you’re planning to scale internationally, don’t simply throw cash on the downside; be strategic, use the instruments, and play the lengthy recreation.”
Jason Atkins
Cofounder, Cake, and Managing Associate, Torus, Gold Coast, QLD
Jason Atkins
The perfect
“Revisiting each assumption within the enterprise. The US market is complicated with many variables by person, area, metropolis, buyer measurement and extra. The perfect startups depend on their knowledge, testing and iterating each aspect as wanted to safe product/market match.”
The worst
“Going too quickly and with out the appropriate platform. The overwhelming majority of US buyers are investing in US development, so pitching with out it will lead to failure and setbacks.”
Recommendation
“Be part of the Austrade Touchdown Pad in SF. It’s filled with high quality insights and networks to get you up and working.”
Michele Leonelli
Founder, Legal professional at Legislation, Studio Leonelli Authorized, Austin, TX
The perfect
“Discover the appropriate staff (advisors, legal professionals, CPAs, and so on.). This implies the appropriate capabilities, they perceive your state of affairs (the place you come from, no matter fears or worries you might have, and so on.), you’re not overpaying, they work nicely collectively, they usually care about seeing you succeed.”
The Worst
“Choosing the mistaken staff and never coming to the US with some cash already within the financial institution.”
Recommendation
“Choose the appropriate staff.”
Sharmaine Ramasamy
Senior Director Funding and Operations, Victorian govt, San Francisco, CA, and former Director Defence and Nationwide Safety Science & Know-how, Dept of Defence (Australia), Washington, DC
Sharmaine Ramasamy
The perfect
“The startups that I’ve seen do one of the best are those who (1) do their analysis to grasp the US market (which varies throughout coasts and cities); and (2) have a strong pitch that they’ve take a look at run with individuals who have US business expertise and perceive US fundraising.”
The worst
“A number of issues that I’ve seen startups routinely do this result in failure (e.g. lack of securing funding):
- (1) Assumptions concerning the US market and being ill-prepared for conferences.
- (2) Bringing Australia’s extra informal manner of doing enterprise into the US setting. I’ve discovered People to (at instances) be fairly formal, so when Australians have come in additional informally (maybe dropping a cuss phrase right here and there), it generally doesn’t come throughout nicely. Greatest to start out formal and lean to casual if the consumer goes that manner.”
Recommendation
“(1) Ask plenty of questions of people that have labored out there for a very long time; (2) type a community and get good recommendation available on the market (pay for it if you need to, it’s cash price investing in); and (3) know your market and perceive your distinctive worth proposition throughout the market you’re trying to enter.”
Robert Gallup
Founder and principal, Oz2US Ventures and Gallup World Gross sales & Advertising, Melbourne VIC, and Santa Barbara, CA
Robert Gallup
The perfect
“Nothing issues greater than making certain product-market match within the US market. The startups which might be most profitable at connecting with an US viewers have localised their product, go-to-market technique, together with UX/UI, pricing, case research, and advertising, whereas establishing US suggestions loops.
In addition they don’t skimp on correctly organising a US entity. 80 per cent of pitches fail as a result of complicated constructions or lack of a US entity when most US VCs require a Delaware C-Corp with a clear cap desk. Participating vetted US authorized, tax, and immigration specialists helps guarantee optimum construction and compliance. That is helpful to navigate the US regulatory and immigration hurdles (SEC, CCPA) and sector-specific legal guidelines (e.g., fintech, healthtech).”
The worst
“Assuming the US is only a larger Australia. There are a lot of pitfalls ensuing from not doing all of your homework. Widespread ones embody launching with out deep due diligence on US opponents, assuming Australian aggressive benefits apply, or that chilly outreach to VCs will work, neglecting US-specific operational infrastructure.
HR is an efficient instance of what can go mistaken: within the US, high quality beats amount. Cultural misalignment and excessive wage prices (USD $300,500 for a five-person staff) can result in pricey errors. Copying Australian hiring practices or employment agreements, ignoring US state-level employment legal guidelines and HR practices can result in severe fines, lawsuits, or reputational injury.”
Recommendation
“Localisation beats perfection: localise the whole lot, together with your self, your staff, product, go-to-market and your community. And now beats tomorrow, because the US panorama strikes at breakneck pace and alternatives disappear rapidly.
When you’re a founder contemplating elevating capital within the US, my greatest two items of recommendation are to create a strong funding technique and begin constructing your community as quickly as potential, as 80 per cent of VC offers come from referrals and international startups face 50 per cent decrease funding odds. Don’t attempt to launch and scale your organization within the US whereas elevating capital. Every is a full-time job and calls for all your time and focus.
Australian startups have already got the expertise, the tech, and the tenacity. What they want subsequent to beat their American dream is diligent preparation, knowledgeable assets, and a airplane ticket.”
- Extra data and upcoming free US growth and funding workshops may be discovered right here.