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 arrange 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 high of their growth plans, adopted by Australia, the UK, NZ and India, in response to the 2024 Startup Muster survey.
Nonetheless, in response to 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 a scarcity of market demand, and Australian assumptions usually 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 the perfect 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 could 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 very best
“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 usually comes down to 1 deceptively easy precept: operational immersion.The very best 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 provides 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 available in the market to know it.
The US isn’t one market—it’s 50. Every state has its personal tradition, laws, buyer expectations, and methods of doing enterprise. What lands effectively in California might miss totally in Georgia. What positive aspects traction in Chicago may stall in Seattle. Founders who succeed immerse themselves. They hear. They check. They study. 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, prospects, 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 venture, virtually at all times stall – or fail.”
Recommendation
“Draft your market entry technique first – then check it available in the market. Meaning strolling the streets, assembly with prospects, negotiating with companions, and absorbing the cultural and regulatory nuances firsthand. Your technique will not be static. It ought to evolve as your data deepens; immerse your self with a strategic and operational lens.”
Alan Jones
Founder, Normal Associate, M8 Ventures, Sydney, NSW
Alan Jones
The very best
“Startups that spend vital time on the bottom within the US constructing relationships earlier than they want them. Those that succeed don’t simply fly over for just a few pitch conferences – they put money into understanding the market deeply and constructing real connections.
People 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 usually assume they’ll 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 may 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 might comply with run a small business pilot or POC in comparison with their Australian friends — be sure to 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 vital assets. And discover native advisors who know your particular sector.”
Josh Pugh
Founder, Govt Director, America Josh, New York, NY
Josh Pugh
The very best
“The very best factor I’ve seen startups do to launch efficiently and scale is to hearken to their group and actively interact with it. Typically, we see manufacturers speaking about group 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 shouldn’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. America’ giant market is a double-edged sword, and whereas it brings the potential of wild success, it additionally has the potential to depart founders chasing objectives 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 very best recommendation I might give is to immerse your self in group and begin with a targeted 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 will not be San Francisco, not to mention Phoenix.”
Russ Macumber
Cofounder and Managing Director, Spectacular Digital, Austin, TX
Russ Macumber
The very best
“Select a distinct segment and an ICP and develop GTM religiously round that area of interest market.”
The worst
“The alternative: are available 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 individuals) and intention to be the one answer that serves that market together with your service, that everybody is aware of. Slim and deep… for tech/broader suppliers, identical rationale however slim and deep into a selected area of interest and ICP. Turn into the go-to answer, construct an adjoining companion community to gasoline the flywheel. Slim and deep. The nation will not be one market, don’t deal with it as such.”
Jason Seed
Working Associate, Scalerr Advisory, Palo Alto, CA
Jason Seed
The very best
“After doing deep analysis and getting an understanding of the market and the chance, they commit. You need 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 count on success. It takes time to search out the perfect match for your enterprise and you have to first form the product, the advertising and marketing and the gross sales course of for the US. You can not count on 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 very best
“Having persistence with the US tax system. It’s sluggish, it’s archaic. It requires a moist signature and typically cheques are issued or required to make fee. The correspondence can usually occasions be by mail and never electronic mail, and so on. Having a stable bodily tackle, having persistence and having a great staff round is the perfect factor.
Operationally, I do assume discovering a focused variety of states to function in is an effective factor – e.g., our development plan is to rent 20 individuals within the US. Be certain this isn’t 20 individuals in 20 completely different states. Make it 5, decide 5 and keep it up. Rent future hires then, in these chosen states. Assist decrease that admin burden. Being compliant in Arkansas is likely to be 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 legislation 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 might provide you with a few points that we see and see extra usually than we wish:
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 might 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 stepping into employment/labour legislation 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 may not 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 high Co not because of a fundraise however doing it for maybe different causes (appears ‘cool’, in hopes of fundraising and so on.) is one other pitfall. Getting IP trapped into US mother or father firm construction will not be typically a fantastic US tax reply, and flipping into the US ought to 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) coated 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 very best
“Work to know and phase the aggressive dimension 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’re getting into the market and get ready — work with the precise companions, buyers, and fellow founders to execute the transfer cleanly.
One of many recurring challenges with Australian startups seeking to break into the US market is a basic misstep in market understanding. Some Australian founders do the exhausting work to deeply perceive the scale, segmentation, and geographic dynamics of the US—a market that’s not solely 15x bigger but in addition extra competitively complicated. However many skip this step totally, working beneath the damaging 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 sooner), the capital markets are extra aggressive, and the competitors is relentless.
Earlier than getting into the US market, startup founders have to be brutally clear on why they’re increasing—what the US provides that the Australian home market doesn’t—after which put together their enterprise accordingly.
Meaning surrounding your self with the precise 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 have to do their homework first.”
Trent Scheirs
Cofounder and director, Grant Assist, Melbourne, VIC
Trent Schiers
The very best
“The neatest factor I’ve seen founders do is leap on a aircraft 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 prospects, distributors, or companions, and so they 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 shortly, doing that upfront analysis and validation makes all of the distinction. Those that take the time to know the regulatory panorama and arrange relationships forward of a full-scale launch are likely to scale sooner 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 usually than you’d assume, is when a enterprise that’s not even stable in Australia decides that going offshore will magically repair their issues. If you happen to’re already struggling right here, making an attempt to crack an even bigger, extra aggressive market will not be usually the perfect answer. The prices are increased, the educational curve is brutal, and with out a confirmed mannequin or sturdy native traction, you’re flying blind together with your burn price climbing quick. 9 occasions out of ten, they find yourself retreating with much less money and extra stress. The lesson? Nail your private 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 business. Proper now, with the USA throwing up new tariffs, quite a lot of nations are discovering it close to not possible to remain aggressive within the US market, which suggests they’re trying 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 strain on Australian companies, particularly those that delight 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 Growth 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. If you happen to’re planning to scale internationally, don’t simply throw cash on the drawback; be strategic, use the instruments, and play the lengthy sport.”
Jason Atkins
Cofounder, Cake, and Managing Associate, Torus, Gold Coast, QLD
Jason Atkins
The very best
“Revisiting each assumption within the enterprise. The US market is complicated with many variables by consumer, area, metropolis, buyer dimension and extra. The very best startups depend on their knowledge, testing and iterating each factor as wanted to safe product/market match.”
The worst
“Going too quickly and with out the precise platform. The overwhelming majority of US buyers are investing in US development, so pitching with out this can end in failure and setbacks.”
Recommendation
“Be a part of the Austrade Touchdown Pad in SF. It’s filled with high quality insights and networks to get you up and operating.”
Michele Leonelli
Founder, Legal professional at Legislation, Studio Leonelli Authorized, Austin, TX
The very best
“Discover the precise staff (advisors, attorneys, CPAs, and so on.). This implies the precise capabilities, they perceive your scenario (the place you come from, no matter fears or worries you could have, and so on.), you’re not overpaying, they work effectively collectively, and so they care about seeing you succeed.”
The Worst
“Choosing the flawed staff and never coming to the US with some cash already within the financial institution.”
Recommendation
“Decide the precise 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 very best
“The startups that I’ve seen do the perfect are people who (1) do their analysis to know the US market (which varies throughout coasts and cities); and (2) have a stable pitch that they’ve check run with individuals who have US business expertise and perceive US fundraising.”
The worst
“Just a few issues that I’ve seen startups routinely try this result in failure (e.g. lack of securing funding):
(1) Assumptions in regards to the US market and being ill-prepared for conferences.
(2) Bringing Australia’s extra informal means of doing enterprise into the US setting. I’ve discovered People to (at occasions) be fairly formal, so when Australians have come in additional informally (maybe dropping a cuss phrase right here and there), it typically doesn’t come throughout effectively. Greatest to begin formal and lean to casual if the consumer goes that means.”
Recommendation
“(1) Ask a number of questions of people that have labored available in the market for a very long time; (2) kind a community and get good recommendation in the marketplace (pay for it if it’s a must to, it’s cash price investing in); and (3) know your market and perceive your distinctive worth proposition inside the market you’re seeking to enter.”
Robert Gallup
Founder and principal, Oz2US Ventures and Gallup World Gross sales & Advertising, Melbourne VIC, and Santa Barbara, CA
Robert Gallup
The very best
“Nothing issues greater than guaranteeing product-market match within the US market. The startups which are 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 and marketing, whereas establishing US suggestions loops.
Additionally they don’t skimp on correctly organising a US entity. 80 per cent of pitches fail attributable to complicated constructions or lack of a US entity when most US VCs require a Delaware C-Corp with a clear cap desk. Partaking 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 greater Australia. There are lots of pitfalls ensuing from not doing all your homework. Widespread ones embrace launching with out deep due diligence on US rivals, assuming Australian aggressive benefits apply, or that chilly outreach to VCs will work, neglecting US-specific operational infrastructure.
HR is an effective instance of what can go flawed: 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 harm.”
Recommendation
“Localisation beats perfection: localise every little thing, together with your self, your staff, product, go-to-market and your community. And now beats tomorrow, because the US panorama strikes at breakneck velocity and alternatives disappear shortly.
If you happen to’re a founder contemplating elevating capital within the US, my greatest two items of recommendation are to create a sturdy funding technique and begin constructing your community as quickly as potential, as 80 per cent of VC offers come from referrals and overseas 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 aircraft ticket.”
Extra info and upcoming free US growth and funding workshops might be discovered right here.
