The US is the land of opportunity. But how do you break into the massive market? We’ve got you covered. If you’re a tech startup, the US is probably on your radar. But you’ll need to be prepared before taking the plunge. Winning in your home market doesn’t guarantee success in the States. You’ll need to: • Know (and beat) your competition • Time your move to ensure success • Prepare for business culture shock • Avoid legal pitfalls (there are a lot!) • Apply for visas and much more! Our Silicon Valley-based US Business Development team has been helping our founders make the big move for a decade. Now you can benefit from our experience.

1. Expanding
to the US
A Speedinvest Platform+ guide for founders

2. Opportunities in the US p4
Trends in US Venture Capital p5
Know Your Competition p6
Doing Business in the US p7
Timing is Key p8
Expanding to the US p9
Product-Market Fit (PMF) p10
Achieving PMF in the US p11
US Incorporation p12
Legal Considerations p13
Insurance, HR and Benefits p14
Visas and Immigration p15
Table of Contents
FAQ p16
Useful Resources p18

3. The Authors
Daniela Caserotto-Leibert
Head of US Business
Development
Nadhila Wardhana
Business Development
Analyst
Sophie Kogler
Business Development
Visiting Analyst
Speedinvest is one of Europe’s most active early-stage investors, with more than €400m AUM,
40 investors, and offices in Berlin, London, Munich, Paris, Vienna and San Francisco. Our
focused investment teams partner with founders building Deep Tech, Fintech, Industrial Tech,
Network Effects, Digital Health and Subscriptions startups.
Each of our portfolio companies also have full access to our in-house Platform+ team of
operational experts who provide tailored growth marketing, people (HR), US business
development, and networking support throughout every stage of their journeys.
Learn more at www.speedinvest.com.
About Speedinvest

4. 1. Opportunities in the US
What makes the US lucrative for startups?
VC investment in the US
also hit a 7-quarter high
in Q3/2020, up 22% year-
over-year (YoY) and 30%
from Q2/2020.
This performance reflects
the resilience of the US
business infrastructure
despite the pandemic.
Source: CB Insights
The US is a vast country that spans across six time zones. Being the second largest
economy and representing 25% of all Global Fortune 500 companies, the US offers an
ocean of opportunities for startups. With the free enterprise system, all businesses can
compete on a level playing field. This makes the US a popular destination when
expanding a business.
US VC Funding as of Q3/2020
Led by tech giants like Microsoft and
Alphabet, the US also has a strong edge
in terms of the development of key
technologies and remains the most
active tech acquisition and investor
market in the world.
As of 2019, 50% of global VC funding
originated from the US. The same year,
the US venture capital industry invested
$135.6 billion in US-based companies,
surpassing the $130 billion mark for two
consecutive years.
Global VC Funding in 2019
Speedinvest Platform+ | Expanding to the US | Opportunities in the US p4

5. 2. Trends in US Venture Capital
What does the US VC space look like now?
Historically, the average acquisition price for US-based, VC-backed companies is
about 3x average EU acquisition price. In 2020, the US VC space still set records in
total capital raised, deal value and exit value, despite strong headwinds from the
COVID-19 pandemic. 2020 has also demonstrated that the US VC industry is very open
to innovation, as it marks a turning point in the search for alternative approaches for
startups going public.
The first quarter of 2021 is keeping up with the momentum from the second half of
last year, with 167 VC deals at or over $100 million. This puts 2021 on track to set a new
US record for mega-deals.
However, despite 2020 being a record year for fundraising, capital still consolidates in
main tech hubs. Silicon Valley, specifically, still dominates the US VC space.
Over half of the deployed money in 2021 originated from West Coast investors. A
majority of which, originates from the Bay Area with a deal value of $25.3 billion
(+58.4% YoY). Additionally, global tech M&A activity is heavily concentrated in
California. The average acquisition price for US-based, VC-backed companies is about
4x average EU acquisition price.
Several other metropolitan areas are also attracting talent and startups, filling the US
with opportunities regardless of where you go next.
Regional Spotlight
Speedinvest Platform+ | Expanding to the US | Trends in US Venture Capital p5

6. Speedinvest Platform+ | Expanding to the US | Understand Your Competition p6
3. Know Your Competition
The US market is huge. Most founders underestimate how competitive the US market
is. Do not get overwhelmed by the sophisticated marketing and lead generation
efforts of your US competitors. It is essential for startups wanting to make the move to
have a visionary mindset and a killer product/service which has the potential to
disrupt the industry.
Where and how will you win?
ü Are there established competitors?
ü Who are their investors?
ü What differentiates your product/service?
ü What are your barriers to entry?
Checklist
Resources Crunchbase
Google
Getlatka
Your own network
1
2
3
4

7. 4. Doing Business in the US
How is doing business in the US different than
doing business in Europe?
Do international
business like a pro
This article written by the
German Accelerator covers
points on how to avoid
cultural business traps.
Startup Work Practices and Values
You may have come across the phrase, “Americans live to work while Europeans work
to live”. This statement is supported by statistics from the OECD. US employees work
slightly longer hours than their European peers.
US employment regulation tends to favor the employer, although it is important to
note that this may vary from state to state.
Business Etiquette
Communication Style
Communication is usually direct.
Straightforward and to-the-point information
is appreciated.
Meetings and Negotiations
Meetings usually follow defined agendas.
Executives will often make up their minds
decisively and quickly.
Transparent Leadership
Open communication is the key to success.
Sharing is Caring
It is beneficial to build an active network that fosters a culture of learning
from every new connection.
Fail Fast, Fail Often
Every culture has a different perception of failure. The US startup ecosystem
sees failure as part of the learning process.
Speedinvest Platform+ | Expanding to the US | Doing Business in the US p7

8. Speedinvest Platform+ | Expanding to the US | Timing is key p8
5. Timing is Key
Are you ready to scale internationally?
Go in as early as possible and start building the bridge from day one. This allows you
to talk to local founders and prospective customers to get a picture of the many
unknown “unknowns” you will face.
However, take the time to carefully evaluate every step! Moving abroad is a major
decision and life change by itself. Expanding your business at the same time is even
more difficult. Validating your business hypothesis and having a deep understanding
of your competitors in advance will help you make the move with confidence.
Do you have what it takes?
Personal
• Are you ready? Is your family?
• Can you cover the cost of living?
• Are you aware of the relevant cultural differences?
Professional
• How quickly can you grow your business in the US?
• Is your product ready to scale?
• Is the US the primary market?
• Have you saturated the local market?
• Who in your company will move to the US?
Valuation Arbitrage
Relocating to the US early puts
you, as the founder, at the heart
of the ecosystem.
Being present on the ground
brings you one step ahead to
scale your company, fundraise
from US investors, including
potential exits.

9. Speedinvest Platform+ | Expanding to the US | Expanding to the US p01
6. Expanding to the US
It is essential to move to the US as early as possible to talk to local founders and
prospective customers to get a picture of the many unknown “unknowns” you will
face.
Before expanding to a new market, especially one as competitive as the US, it is vital
to ask yourself whether or not your company is fully prepared.
The Market The Product
• Have you validated the US market?
• Do you know your competitors?
• Do you have a deep understanding of
your product-market fit in the US?
• Do you know who your buyer is?
• Do you have a good understanding of
sales cycles/partnerships in the US vs.
your home market?
• Do you know where your industry has
their core ecosystem?
• Where will you have boots on the
ground?
• Do you have a business that is global
in nature?
• Do you know your USP?
• Do you have case studies showing the
impact of your product?
• Have you run representative
consumer pilots (POVs)?
• Do you have organic inbound leads
from the US?
• Does the product need adjustments
for the new market?
Key Aspects
1. US Validation
2. Unique Selling Proposition
3. Know Your Competitors
4. A Scalable Business
Is your product localized to the US market?

10. Speedinvest Platform+ | Expanding to the US | Product Market Fit p10
7. Product-Market Fit (PMF)
Why is PMF so important?
Product-market fit is the most essential element when entering a new market. Many
companies believe that they have it but really do not. What is the value proposition of
the solution to the problem you are solving?
Signs that you do not have PMF
• Customers do not understand the value of your product or service.
• There is no organic pull.
• Sales are not repeatable and the number of transactions are low.
• You see diminishing customer value and high churn.
• Sales cycles are long.
• Your product is not yet well known and is not visible in the market.
What you need to find PMF
TAM
What is your total
addressable market? Is it
large enough for the move
to be worth it?
Feedback
Are you regularly speaking to
customers for direct feedback? Is
there positive industry and market
feedback?
Core Market
Do you have a strong PMF
in your home market? Do
you deeply understand
your users?
Product
Do you have a minimum viable
product? Do you understand the
value your product provides for
customers?
Reference
Well-known European
customers will not mean much
to a US audience unless they are
F500/G2000.
USP
What is your unique selling
proposition? What are your key
differentiating factors? Are they
sustainable?

11. Speedinvest Platform+ | Expanding to the US | Achieving PMF in the US p11
8. Achieving PMF in the US
How many customers would be disappointed
without your product?
According to multiple studies, anything above a 40% churn rate indicates that you do
not have PMF. It is important to note, however, that this churn statistic may vary
greatly between industries. For example, eCommerce companies may see higher
churn of returning customers. Therefore, it is crucial to conduct in-depth research on
your industry.
Identify Market Needs
Solve a Problem
Identify pain points in the market
through tracking the customer
journey as well as measuring patterns
and shifts in behavior. Focus on easy
usability and increasing overall
efficiency.
Expand your Margins
Continuously innovate according to
what the market needs and what the
solution could be. Don’t be afraid to
make new iterations of your existing
product.
Market
Value
Proposition
Underserved Needs
Target Customer
Product-Market Fit
Product
Feature Set
UX

12. Speedinvest Platform+ | Expanding to the US | US Incorporation p12
9. US Incorporation
You can conduct business in the US without reincorporating (flipping) your company
into a US entity or even using a US subsidiary. Most companies that do not
reincorporate will use a US-based subsidiary to operate in the US. However, a large
number of investors will only invest in US-based companies.
Keep in mind that there are a number of factors you have to consider, including
potential tax liabilities, when you want to reincorporate in the US. Plan this early.
The value of the company at the time of entry into the US will largely determine the
tax burden that needs to be borne by the company and its shareholders. Therefore, if
you want to reincorporate in the US, it’s prudent to do so as early as possible if you
want to keep your taxes as low as possible.
Do you need a US entity?
When, where and why should
you reincorporate in the US?
The main reason you should reincorporate
is to gain easy access to US investors, local
contracts, etc. However, if you are not yet
seeking US investors and only need an
easy way to hire US employees, we
recommend setting up a subsidiary.
Delaware is the most popular jurisdiction
in the US for forming new companies. If
you are moving to the US to fundraise,
investors may require that the new entity
be incorporated in that state.
What other factors need to be
considered?
Corporation vs LLC: Most US investors will
insist on a US corporation. But in some
cases, an LLC may be sufficient.
Costs and liabilities: Once you have a US
entity, there will be further costs and
liabilities such as employee benefits and
insurance.
What are the advantages of
reincorporating in the US?
The main advantage is the ability to
facilitate business in the US and to make
the company more attractive to US
investors, acquirers and public markets.
What are the tax implications?
When reincorporating in the US, it is
important to understand the tax
implications for companies and the
existing shareholder/owners.
Flipping a company is expensive, both due
to potential tax liability and transaction
costs.
Once incorporated with employees on the
ground, you will have to pay US taxes. In
some cases, you may still be subject to
taxes if you have US-based employees,
even without a US entity.
It’s also possible that non-US jurisdictions
could view reincorporation as a sale of a
company, therefore requiring
shareholders to pay taxes in that
jurisdiction.

13. Speedinvest Platform+ | Expanding to the US | Legal Considerations p13
10. Legal Considerations
The US legal system is highly regulated, can be rigid and lawsuits are common. The
law can also vary significantly between jurisdictions, so retaining competent legal
counsel is critical.
How is the US legal environment different?
Important legal considerations
Data Privacy
The US has very strict data
privacy laws, though laws are
not quite as strict as many in
Europe.
Employment Laws & Liability
You are liable for your employees within
the scope of their employment. This
includes work-related travel.
IP
You need to protect your intellectual
property, normally through a
combination of contracts and filings
with the US government.
Cap Table and Equity Grants
The US has tax penalties for granting equity to service providers at a price below
fair market value. All equity issuances need to be documented and properly
approved in order to be valid and need to comply with US securities laws.
Permits
You need to register your
business and hold state and
federal permits, licenses, etc.
| Corporate Law Firm
Corporate law firms support companies at all stages
of growth, from formation and initial funding to IPOs
and mergers. Their attorneys have a deep
understanding of how technology companies are
formed, financed, grown and taken public or
merged.
Resources How we can help
We work with trusted
partners for legal advice
and US incorporation
support.
Reach out to us to find out
more.

14. Speedinvest Platform+ | Expanding to the US | Insurance, Payroll, HR and Benefits p14
11. Insurance, HR and Benefits
Having insurance in the US protects business owners from having to pay legal claims
against their company out-of-pocket. The same applies to managing and retaining
employees. During the early-stage (and beyond), it is very common to outsource tasks
to third-party providers. This commonly includes HR related matters, such as payroll
and benefit management.
How can you grow and protect your business?
Most Important
Employment Practices Liability / D&O
When you have an employee on your payroll, you are required by law to carry
this insurance. EPL insurance provides employers with coverage against
discrimination, harassment, wrongful termination etc. Directors and Officers
insurance protects against any loss resulting from legal action taken against
you for a fault committed in carrying out your duties.
General Liability & Property / BOP
While this insurance is not required by law, you will need to have it once you
have an office presence. It will cover injury or property damage that occur while
doing business.
Cyber Liability / E&O
You may also want to consider cyber liability insurance to protect your business
against cybercrime. Some of your clients may even require it to protect against
any future claims. Our third-party providers can guide your further.
Insurance
1 Vouch
2 Embroker
3 Founder Shield
1 Sequoia 4 Justworks
2 Trinet 5 Gusto
3 Onpay
HR & Payroll

15. Speedinvest Platform+ | Expanding to the US | Visa and Immigration p15
12. Visas and Immigration
Which visa should you apply for?
To work in the US, you need an eligible visa. There are different types of visas with
different requirements. You need to take into consideration that the application
process can be lengthy and costly. We highly recommend having an expert in this
field by your side throughout this process.
E-2 Visa E-1 Visa H-1B Visa L-1 Visa 0-1 Visa
You are planning to
start a company in the
US.
Your company is
actively involved in
trade with the US
(<50% of volume).
You are an employee.
You have been
employed by your
company for at least
one year.
You are an individual
or entrepreneur who
can demonstrate
extraordinary abilities.
You are planning to
invest a significant
amount of money in
the US.
You are a citizen of a
treaty country.
You hold a bachelor’s
degree.
You hold an executive
or manager position.
You need to be a
citizen of a treaty
country*.
Your company is at
least 50% owned by
citizens of a treaty
country.
Your employer will
have to fill out a Labor
Condition Application.
The foreign company
will remain open and
operational during the
period of your L-1
employment in the US.
Resources | Immigration Law Firm
Immigration firms represent corporate clients, including
investors, businesses, and accelerators, on the full range of
employment-based US immigration matters. This includes
the creation of new businesses, the hiring and transfer of
professionals, managers, and executives, the immigration
consequences of mergers and acquisitions, and compliance
with immigration related record-keeping and employment
verification requirements.
How we can
help
We work with
trusted partners
to provide
immigration
support.
Reach out to us
to find out more.
*Countries the US maintains a treaty of commerce and navigation with

16. Speedinvest Platform+ | Expanding to the US | FAQ p16
FAQ
1. What are the most promising industries in the US?
Generally speaking, all products that are global in nature.
It would serve you well to take some time to examine the comparative size of the
largest companies in your industry in the US vs. Europe. You may find this to be a
humbling reality check about just how much larger the US market is. Germany only
represents less than 5% of the Global Fortune 500 companies vs. 25% for the US (and
China is still #2 after the US). That’s why the total addressable market (TAM) in the US is
so much larger. Furthermore, think about products and solutions where the US
ecosystem plays a major role.
3. Do I need a founder on the ground?
It depends.
If you are in the process of building out your product it may be more efficient to stay
with your core team. If your product has scaled already and the brand is very well
known you can appoint a Managing Director in the States. Alternatively, you may want
to consider hiring key roles in sales and marketing in the US. If you decide to move your
business entirely to the States, you need to ask yourself three questions before entering
the US market. Create a holistic US business plan mapping out clear responsibilities
and timelines dedicated to each team member.
2. At what stage should I apply to a US-based accelerator and which one
is the right one for you?
As early as possible to gain traction (pre-Seed or Seed).
There are plenty of US based accelerators. Y Combinator (YC) is one of the most
important American accelerators, located in Mountain View, California. YC backed
companies include Airbnb, Stripe, Dropbox, GitLab, docker and many more. Twice a
year they accept a number of startups into their three-month program and invest a
small amount of money for equity in the company. YC will help start-ups refine their
pitches to investors. Further, it can help companies with an US expansion, strategy and
network. The greatest value add is probably on the fundraising side as YC will bring
portfolio companies to the attention of a broad range of investors. Companies who
went through the program are often valued higher. Other accelerators include
government funded programs (German Accelerator), business accelerators (SAP
Foundry), university programs (Berkeley Skydeck), and Techstars.

17. 5. What is the compensation for your first US-based sales reps?
There is always a base and a bonus component for achieving the quota.
An equity kicker is also very common. Additionally, the employer might have to pay for
health insurance and other benefits. A yearly base salary of USD 45k for an SMB to 125k
for an enterprise sales representative is a good starting point. You can find more
information about how a sales rep compensation package is put together here. This
overview of general sales compensation levels in the US is useful too.
Speedinvest Platform+ | Expanding to the US | FAQ p17
4. How much does it cost to enter the US?
It’s not a one size fits all.
If you consider expanding to the US you have to be willing to allocate resources, time,
focus and money. Depending on how deep of an operation you need, it will be more
costly. Test the market beforehand. Know your competition. Get US validation before
you actually plan your US expansion. And only consider this move when the product
has been built and you have raised serious money to scale and grow.
For more information on other roles, Built in SF provides an extensive salary database
covering average compensation rates for a wide-range of positions at tech companies
and startups in the San Francisco Bay Area.

18. Speedinvest Platform+ | Expanding to the US | Useful Resources p18
Useful Resources
US Small Business Administration | Business Guide
The SBA is the only cabinet-level federal agency fully dedicated to
small businesses and startups. The SBA Business Guide provides a
holistic overview on how to plan, launch, manage and grow your
business in the US.
PWC | Doing Business in the US
This guide by PWC serves as a starting point for any business thinking
about doing business in the US. The guide provides an overview of
the US corporate and personal tax systems, as well as some common
forms of US business entities and how they are created. There is
advice about financial and accounting matters, human resources and
employment topics, trade matters and US banking.
World Bank | Doing Business 2020
The ‘Doing Business’ project by the World Bank provides a number of
quantitative indicators on regulation, such as starting a business,
getting credit, protecting minority investors, paying taxes, trading
across borders, enforcing contracts and resolving insolvency. This
project also outlines the process of starting a business (procedures,
processing times, cost) in New York City and Los Angeles.
HSBC | International Business Guide
A guide written by HSBC North America aimed at helping businesses
navigate the US. This guide provides an overview of business
etiquette, society and culture, taxes and wages, as well as cost of
living.
1
2
3
4
Please find more guidance on expanding to the US below

19. Platform+ offers exclusive
support to our portfolio
companies
US Validation
By partnering with Speedinvest early on, we can help you
win in the US by supporting you with:
1 2
3 4
US PMF and GTM
Setting up an
operational US Office
Building your US
network
Contact us
Reach out to us if you have further questions
Daniela Caserotto-Leibert
Speedinvest Platform+
daniela.caserotto-leibert@speedinvest.com

20. All efforts have been made to ensure the topicality, correctness, and completeness of the information
contained in this document. However, any liability related to the use of this information is excluded. The
information provided in this document explicitly serves the sole purpose of general information and does
not represent legal advice. As such, this information should not be used as a substitute for legal advice.
We reserve the right to amend or update all contents at any time without separate announcement. This
document contains links to third-party websites (“external links”). All efforts have been made to ensure
the information they contain is current, accurate and complete. However, we have no influence on
current or future presentations or the contents of the linked websites. The use of external links does not
contain any endorsement of the content or services of the linked third-party sites. Therefore, any liability
related to the use of the external links is excluded to the greatest extent legally possible, and we do not
adopt any contents as our own. The use of such links is at the user’s own risk.
Disclaimer
Kindly supported by our partners:
Accelerators our portfolio companies have worked with: