5 questions every Founder should ask before a US expansion | Part 2 | Summary and Q&A

TL;DR

Founder should consider expanding to the US market if there is a massive total addressable market, organic traction, no significant barriers to entry, sufficient management bandwidth, and potential interest from US venture capitalists.

Key Insights

• ✳️ Assessing the total addressable market is critical to determine if expansion into the US market is worth the operational risks.
• 🫷 Organic traction from US companies and push from Asian customers towards US subsidiaries are positive indicators of market potential.
• 🪚 Identifying and addressing potential barriers to entry, such as language or product usability, is essential for a successful US expansion.
• 🍵 Sufficient management bandwidth and capability to handle the challenges of operating in a different time zone are crucial considerations.
• 🧑‍💻 Being in a tech sector that excites US venture capitalists can be beneficial for attracting future investment.

Transcript

hello my name is chris reisig and i'm an operating partner with jungle ventures and i'm based here in boston massachusetts in the united states of america thanks for spending some time with me today to talk about how to expand into the united states market i wanted to spend a few minutes today talking about a topic that i hear come up quite frequen... Read More

Questions & Answers

Q: How can a founder determine if the US market is worth entering?

Founders should evaluate the total addressable market globally and compare it to the US market size. If the US represents a significant portion, around 40% or more, it is worth considering expansion.

Q: What are some indicators of organic traction in the US market?

Organic traction can be observed when US companies visit the founder's website, request demos, or engage with the team. These interactions demonstrate potential demand and market opportunity.

Q: What barriers to entry should be considered before expanding to the US?

Founders need to assess if there are any product or support-related issues specific to the US market. Language barriers, differences in UI, or specific customer needs must be addressed to ensure successful entry.

Q: What factors should be evaluated in terms of management bandwidth?

Founders should consider the time difference between the US and their home country, as it can strain management capabilities. Sufficient bandwidth to expand and operate in another market is crucial for success.

Summary & Key Takeaways

• Before deciding to enter the US market, it is vital to evaluate the total addressable market worldwide and assess if staying in the Asian market is a viable option.

• Organic traction from US companies, as well as Asian customers pushing for US expansion, serve as indicators of market opportunity.

• Potential barriers to entry, such as language differences and product usability, must be considered, along with management bandwidth and the technology's appeal to US venture capitalists.