American allure – why SEA startups are expanding to the US

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Hello reader,

American dream? Pssht. All I’ve heard my whole life was the Singaporean dream, also known as the 5 Cs: condo, car, cash, credit card, country club membership. It’s a lot catchier than “affordable, readily available housing and cheap food” for sure.

Jokes aside, I’ve realized that having something to work toward is especially important once you start working. During one’s schooling days, it’s a lot easier to get caught up in having different things laid out for you – you need to score well for exams, participate actively in co-curricular activities, and more.

Once you’re out of the education system, however, you need to start finding these goals to set for yourself to stay motivated. If not, there’s always the danger of just sinking too deep into your daily routine with nothing more to inspire you. It can be as simple as learning a new language or taking up a new sport.

For some startup founders, that goal takes the form of overseas expansion. However, many of those based in Southeast Asia have set their sights further than the region. Their target? The US. Today’s story takes a look at why many want to take this leap across the Pacific.

Today we look at:

• Why Southeast Asian startups are heading to the US
• The US$1 million pre-seed round of a Bangladeshi employment platform
• Other newsy highlights such as Elon Musk’s xAI potentially setting a US$24 billion valuation and Nvidia upping its revenue forecast for Q2.

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The land of opportunity

Image credit: Timmy Loen

One would think that expanding to the US sounds a lot more difficult than expanding within a startup’s home region. While this might actually be the case, some founders in Southeast Asia feel that the benefits are worth the effort. Let’s see how it’s panning out.

• Showing up: According to Anthony Chow, CEO of digital lock manufacturer Igloohome, establishing a local office in the US is essential for building trust with American customers. Some founders say they expanded to the US as it has a much bigger consumer market, while others point out that the US makes more sense for products that can help clients manage higher labor costs.
• In others’ footsteps: Southeast Asia tends to follow rather than lead in tech adoption. This makes the US an interesting opportunity for startups that bank on new trends, such as longevity or climate finance.
• Accompanying potential: Beyond getting access to an additional market, some founders believe that expanding in the US can open up more funding opportunities for their startups.

Read more: Startups ditch SEA expansion for American Dream, but it’s not that simple

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