US enlargement 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 organize Australian startups for the leap, and help 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 enlargement 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 essential to Australian startups, it’s no surprise the leap nonetheless feels daunting.
So I turned to our Oz2US Australian and US enlargement consultants, mentors, VC advisors and Australian founders who’ve efficiently scaled to the US and requested them: “What are the best things you’ve seen Australian startups do to successfully launch and scale in the US? What are the worst mistakes you’ve seen startups make or experienced that have led to failure, setbacks, or retreats? And what is the one piece of advice you have for Australian founders considering expanding 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 most effective
“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 most effective leaders have learnt the artwork of delegation – and set up a simple delegated authority course of that empowers their workforce to function successfully with out fixed oversight. This offers the chief the area and focus required to drive world 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, rules, buyer expectations, and methods of doing enterprise. What lands properly in California might miss totally in Georgia. What positive aspects traction in Chicago may stall in Seattle. Founders who succeed immerse themselves. They pay attention. They check. They be taught. And critically – they adapt.”
The worst
“The fly-in-fly-out model without a longer-term plan. It’s tempting – especially for resource-constrained businesses – to try and make magic happen over a week of meetings. But partnerships, customers, and investor trust aren’t built on Zoom or drive-by networking events. US business is relationship-driven, and relationships require a founder-led, boots-on-the-ground approach. Founders who delegate this to others, or treat US expansion like a side project, almost always stall – or fail.”
Recommendation
“Draft your market entry strategy first – then test it in the market. That means walking the streets, meeting with customers, negotiating with partners, and absorbing the cultural and regulatory nuances firsthand. Your strategy is not static. It should evolve as your knowledge deepens; immerse yourself with a strategic and operational lens.”
Alan Jones
Founder, Normal Companion, M8 Ventures, Sydney, NSW
Alan Jones
The most effective
“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 a couple of pitch conferences – they spend money on 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 different the market actually is. Australian startups often think they can just copy-paste their local approach, but customer behaviour, sales cycles, regulatory environment – it’s all different. Don’t forget it’s unlikely that US execs will have even heard of any large Australian organisations other than Canva, Atlassian, Qantas and Westfield (Scentre Group) — our biggest banks, retailers, insurers, and telcos are still practically unknown in the US. The biggest surprise may be how willingly and rapidly large US organisations may agree to run a small commercial pilot or POC compared to their Australian peers — make sure you have the capacity to service the POCs you pitch for before you pitch.”
Recommendation
“Don’t rush it. Take time to really understand your target customer in the US context before you commit significant resources. And find local advisors who know your specific sector.”
Josh Pugh
Founder, Govt Director, America Josh, New York, NY
Josh Pugh
The most effective
“The best thing I’ve seen startups do to launch successfully and scale is to listen to their community and actively engage with it. Often, we see brands talking about community as if it were important, but not listening to or responding to the feedback and criticisms that come from it. There is power in numbers, and while it should not always be followed rigidly, it should always be included as part of the discussion.”
The worst
“The worst thing I’ve seen has been scale without capacity. The United States’ large market is a double-edged sword, and while it brings the possibility of wild success, it also has the potential to leave founders chasing goals they’re not ready for. A staged and steady approach to the market, and sticking to those principles, is important for long-term success.”
Recommendation
“The best advice I would give is to immerse yourself in community and start with a focused market. The US is like 50 different countries rolled into one, and within each of those regions are unique hubs of innovation, culture, and communication. While Australian markets are generally more homogeneous, the US market values individualism and, importantly, prefers messaging that is customised to each audience. New York is not San Francisco, let alone Phoenix.”
Russ Macumber
Cofounder and Managing Director, Spectacular Digital, Austin, TX
Russ Macumber
The most effective
“Choose a niche and an ICP and develop GTM religiously around that niche market.”
The worst
“The opposite: come in as a generalist, work with anyone who’ll pay, not narrow down their ideal customer and then wonder why they have churn, inefficient resourcing, vague value prop, and an early flight back home.”
Recommendation
“For service providers, choose a mid-size city (1m–5m people) and aim to be the one solution that serves that market with your service, that everyone knows. Narrow and deep… for tech/broader providers, same rationale but narrow and deep into a specific niche and ICP. Become the go-to solution, build an adjacent partner network to fuel the flywheel. Narrow and deep. The country is not one market, don’t treat it as such.”
Jason Seed
Working Companion, Scalerr Advisory, Palo Alto, CA
Jason Seed
The most effective
“After doing deep research and getting an understanding of the market and the opportunity, they commit. You have to get feet on the ground and start working from within this market to really take it on.”
The worst
“Hire a ‘sales person’ from afar and just expect success. It takes time to find the best fit for your business and you need to first shape the product, the marketing and the sales process for the US. You cannot expect a salesperson to be successful with the playbook you used at home.”
Recommendation
“Get here, have 100 cups of coffee over three months.”
Jason Sales space
President and CEO, Tax Studio, Austin, TX
Jason Sales space
The most effective
“Having endurance with the US tax system. It’s gradual, it’s archaic. It requires a moist signature and typically cheques are issued or required to make cost. The correspondence can usually occasions be by mail and never e-mail, and many others. Having a stable bodily deal with, having endurance and having an excellent workforce 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 folks within the US. Be certain this isn’t 20 folks in 20 totally different states. Make it 5, choose 5 and keep it up. Rent future hires then, in these chosen states. Assist decrease that admin burden. Being compliant in Arkansas is perhaps 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 can assist drive down employment regulation points, authorized charges, admin burden, compliance prices, tax publicity, gross sales tax obligations, and many others.”
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 want:
First, establishing 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 could be as excessive as $25,000 per submitting per 12 months. 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 moving into employment/labour regulation points with a brand new rent (not offering one thing they promised, not adhering to state-level guidelines on sure issues, and many others.). These won’t 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 (seems to be ‘cool’, in hopes of fundraising and many others.) is one other pitfall. Getting IP trapped into US father or mother firm construction is just not typically an amazing US tax reply, and flipping into the US must be pushed by fundraising.”
Recommendation
“Get your trusted companions lined up early. I consider enlargement from US tax advisory and compliance in 4 levels:
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 like speaking to purchasers and getting locked in at Stage 2 – ‘let’s plan’. Get snug that you’ve got most (not all) coated when it comes to help. Tax, authorized, and maybe insurance coverage pending the enterprise, enterprise advisors who perceive US enlargement. It’s a considerably easy reply however the work will get finished in constructing the plan of assault to enter the US market.”
Ben Wunderman
(Australian) Cofounder and CEO, Packsmith, San Francisco, CA
Ben Wunderman
The most effective
“Work to understand and segment the competitive size and scale of the market in 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, traders, 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 elementary misstep in market understanding. Some Australian founders do the laborious work to deeply perceive the scale, segmentation, and geographic dynamics of the US—a market that isn’t solely 15x bigger but additionally extra competitively advanced. However many skip this step totally, working underneath the damaging assumption that the US is just a scaled-up model of Australia’s home market. It’s not. The shopper expectations are totally 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 must be brutally clear on why they’re increasing—what the US affords that the Australian home market doesn’t—after which put together their enterprise accordingly.
Meaning surrounding your self with the precise traders, native companions, and different founders who’ve finished it earlier than or who perceive how it’s finished greatest. The US rewards startup focus and precision with an enormous TAM. However Australian startups must do their homework first.”
Trent Scheirs
Cofounder and director, Grant Assist, Melbourne, VIC
Trent Schiers
The most effective
“The smartest thing I’ve seen founders do is jump on a plane and spend time on the ground before going all in. A lot of people try to scale too early or from a distance, but the ones who win are the ones who treat it like a proper recon mission. They meet with potential customers, distributors, or partners, and they get a feel for whether there’s real demand before they start burning serious cash. Especially for product-based businesses, where logistics, compliance, and fulfilment can get expensive quickly, doing that upfront research and validation makes all the difference. The ones that take the time to understand the regulatory landscape and set up relationships ahead of a full-scale launch tend to scale faster and avoid some of the early stumbles others make by diving in blind.”
The worst
“ The worst move I see, which happens more often than you’d think, is when a business that’s not even solid in Australia decides that going offshore will magically fix their problems. If you’re already struggling here, trying to crack a bigger, more competitive market is not often the best solution. The costs are higher, the learning curve is brutal, and without a proven model or strong local traction, you’re flying blind with your burn rate climbing fast. Nine times out of ten, they end up retreating with less cash and more stress. The lesson? Nail your home market first, build real traction, prove product-market fit, get your ops tight, then think about expanding 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, loads of nations are discovering it close to not possible to remain aggressive within the US market, which implies they’re trying elsewhere. These nations have now shifted their consideration to the Australian and the UK markets. We’ve bought 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 satisfaction themselves on high quality. So when you’re not eager about offshore markets now, you’re most likely already behind. You may’t watch for the squeeze after which react; you’ve bought to be proactive.
One of many smartest issues you are able to do is faucet into the help that’s already there. The Export Market Improvement Grant provides you as much as $80k a 12 months in matched funding to gas your world development — and but most founders don’t even comprehend it exists. In case you’re planning to scale internationally, don’t simply throw cash on the downside; be strategic, use the instruments, and play the lengthy sport.”
Jason Atkins
Cofounder, Cake, and Managing Companion, Torus, Gold Coast, QLD
Jason Atkins
The most effective
“Revisiting every assumption in the business. The US market is complex with many variables by user, region, city, customer size and more. The best startups rely on their data, testing and iterating every element as needed to secure product/market fit.”
The worst
“Going too soon and without the right platform. The vast majority of US investors are investing in US growth, so pitching without this will result in failure and setbacks.”
Recommendation
“Join the Austrade Landing Pad in SF. It’s full of quality insights and networks to get you up and running.”
Michele Leonelli
Founder, Lawyer at Legislation, Studio Leonelli Authorized, Austin, TX
The most effective
“Find the right team (advisors, lawyers, CPAs, etc.). This means the right capabilities, they understand your situation (where you come from, whatever fears or worries you may have, etc.), you’re not overpaying, they work well together, and they care about seeing you succeed.”
The Worst
“Picking the wrong team and not coming to the US with some money already in the bank.”
Recommendation
“Pick the right team.”
Sharmaine Ramasamy
Senior Director Funding and Operations, Victorian govt, San Francisco, CA, and former Director Defence and Nationwide Safety Science & Expertise, Dept of Defence (Australia), Washington, DC
Sharmaine Ramasamy
The most effective
“The startups that I’ve seen do the best are those that (1) do their research to understand the US market (which varies across coasts and cities); and (2) have a solid pitch that they’ve test run with people who have US commercial experience and understand US fundraising.”
The worst
“A couple of issues that I’ve seen startups routinely try this result in failure (e.g. lack of securing funding):
(1) Assumptions concerning 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 properly. Finest to start out formal and lean to casual if the shopper goes that means.”
Recommendation
“(1) Ask lots of questions of people who have worked in the market for a long time; (2) form a network and get good advice on the market (pay for it if you have to, it’s money worth investing in); and (3) know your market and understand your unique value proposition within the market you’re looking to enter.”
Robert Gallup
Founder and principal, Oz2US Ventures and Gallup World Gross sales & Advertising, Melbourne VIC, and Santa Barbara, CA
Robert Gallup
The most effective
“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 establishing a US entity. 80 per cent of pitches fail attributable to advanced constructions or lack of a US entity when most US VCs require a Delaware C-Corp with a clear cap desk. Participating 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. Frequent ones embody 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 fallacious: within the US, high quality beats amount. Cultural misalignment and excessive wage prices (USD $300,500 for a five-person workforce) 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 critical fines, lawsuits, or reputational injury.”
Recommendation
“Localisation beats perfection: localise the whole lot, together with your self, your workforce, product, go-to-market and your community. And now beats tomorrow, because the US panorama strikes at breakneck velocity and alternatives disappear shortly.
In case you’re a founder contemplating elevating capital within the US, my greatest two items of recommendation are to create a strong 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 overcome their American dream is diligent preparation, skilled assets, and a airplane ticket.”
Extra data and upcoming free US enlargement and funding workshops could be discovered right here.
