There is Nothing Great about taking your startup to USA from India, stop fooling yourself

I never understood the fascination of Indian startups and the founders to move to US to run their company. There is nothing wrong in taking your startup from India to USA if you see the value and it has worked really well for few but there is also nothing great about it either.

I have seen way too many Indian startups and founder getting excited with the prospect of moving to US or to get their company registered there (mostly Delaware) hoping for either easy funding or easy clients. I can’t say how easy it is to get funded (I am sure it is easier as compared to India) but there are certainly no easy clients or easy money. You have to work equally hard to get US clients while being in US as compared to India and for web based SaaS startups, it is suicidal to go to US as even a 10 people company can have a burn rate of one million dollars.

There is also one major problem in running your business from USA, you loses out on cost arbitrage. Some of the India’s biggest self funded software companies like Directi and Fusioncharts make so much money because of cost arbitrage, you earn in US dollars and pay expenses in Indian rupees.

There is also huge cultural difference, India will be India, USA will not be India :) There are no friends or family around you, just people, business and money. Once the excitement of doing business in USA while being in USA dies down, the hard reality hits which takes away lot of positive energy and steam from the startups. Building a business whether in India or USA is a long term game so make sure you know what you are doing. Success in business is all about making less mistakes than your competitors.

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