Over the past few months, Tech City News has produced a documentary exploring New York’s tech scene and the challenges of expansion. In August, the team spent a week interviewing members of the Big Apple’s tech community about why it has become a strong contender as a base for US expansion.
As part of the project, Tech City News will be publishing a series of articles exploring New York’s tech ecosystem and what it takes to expand there. Watch the documentary now.
Thinking of moving your startup to NYC?
There’s no better place than London to launch a tech business.
Co-working spaces and accelerators abound, the SEIS-fuelled early-stage funding culture is strong, public and private sector support is readily available, and … it’s London – a world-class city whose strengths benefit Blippar as much as Barclays.
And, for the globally-minded entrepreneur, the US is the best place to expand. The funding rounds, the customer base, the potential partners – everything in the US is geared towards growth.
But to succeed you need to do it right. You could write a book on US expansion (in fact, ), but here are five quick tips to get you started on your journey.
Pack your bags
US investors, partners and customers increasingly are interested in UK startups, but they’ll typically expect you to have key people on the ground.
Investors want to leverage their network and expertise; partners and customers demand responsiveness and accountability.
Get started early on addressing personnel matters. Sorting out immigration issues might take a few months if you’re relocating or sending colleagues. Take your time even if you’re hiring local – retaining the wrong people can be a major setback.
Location, Location, Location
Choosing where to launch is crucial. New York offers manageable flight-times and time zones and a concentration of potential customers.
The West Coast’s robust VC community is an undeniable lure. Many US locations provide significant tax and other incentives to entice high-growth businesses.
The right decision factors in many considerations: proximity to customers, suppliers and investors, ease of management, availability of talent, and costs of operation.
Be sure to utilize the US Government’s SelectUSA market research tools, as well as UK and US-based advisors at UK Trade & Investment.
Protect what’s yours
Your UK patents and trademarks don’t extend to the US, so consider filing US applications. With some planning, your UK filings may allow you to establish US rights prior to actual US expansion.
Adapting your standard terms and conditions to the US market often is advisable. US partners may balk at signing an agreement governed by English law and respond with their less-favourable form agreement.
Watch your back
US commercial opportunities are vast, but you need to recognise and navigate the legal risks.
The US business culture is aggressive, in part because – – each party to a US lawsuit typically pays its own legal fees, regardless of the dispute’s underlying merits.
US entities often use the threat of costly and distracting litigation to negotiate favourable business outcomes. Useful risk mitigation strategies include US insurance policies, good compliance programs, and unambiguous contract drafting.
Leverage your team
Savvy US entrepreneurs view their advisors as partners, providing a shield against threats and complexities that distract from core business.
You’ll more easily stay focused by building a seasoned, cost-effective US advisory team – a US lawyer, banker, accountant, insurer, etc.
And don’t be shy about leveraging their networks for US introductions; US entrepreneurs expect that value-add.
Check out Tech City News’ first documentary, Making it in New York.