The United States is at the forefront when it comes to the number of startups. In fact, the US has nearly three times as many startups as the other top 10 countries combined. But the tech industry’s recent slowdown is taking a toll on these young companies. Venture capital money to US startups has fallen for 13 consecutive quarters. In the first quarter of this year, startups secured $37 billion in investments, which is the lowest figure in the past three years. Moreover, the market has been rocked by banking issues, staff layoffs at major tech corporations, and more restrained valuations.

Nevertheless, despite these challenges, the US market retains its allure for entrepreneurs. In 2023, Loovatech made its debut in the US market. Throughout this year, we’ve met and talked with various companies that paved the way ahead of us. In this article, we will share their experiences and hope that their journey can be a source of guidance for fellow founders.

EasyChamp

Insights from Anton Abyzov, founder

EasyChamp is a platform to manage sports competition. The platform maintains all-season competition statistics, lifetime personal achievements, and performance analytics, preserving the records indefinitely. Seamlessly integrate with EA Sports FIFA and Konami eFootball and allow you to play with favorite teams and manage squads as you wish. 

Headquartered in Miami, FL

Founded in 2021

Initial investment: $100,000

Marketing budget: $20,000

How the idea came about: I've been engaged in sports since I was a child, and I often encountered poorly organized competitions. Even today, some events still rely on Excel or paper for calculations. That’s why I’ve always aspired to create a product that makes it simple for anyone to organize various types of competitions, easily tally points, and ensure complete transparency for all participants.

Marketing and sales:

1. Before moving to the US, we had initial contacts and discussions about our product. Once we arrived, these interactions gained momentum.

2. I'm lucky that I play soccer myself. I played in friendly matches and talked to people, learning about competitors and the competition market’s current status. Most importantly, it confirmed the existence of a potential market for our solution.

3. Networking is the best tool for sales and research. At first, I reached out to friends, acquaintances, and industry contacts. This helped me understand that government contracts, although complex and time-consuming, have the potential to take our product to the next level.

4. In terms of marketing, we use Fb Ads, SEO, DIRECT EMAIL AND SOCIAL MEDIA MESSAGES and establish partnerships and referral programs. 

5. We allocate 30% of our revenue to marketing, with the remaining 70% — to development.

Do we need to be in the USA?

Our original plan didn’t include moving to the USA, but circumstances led us here, and we decided to stay. I believe it was the right decision.

Mistake

Now, I see that we began our marketing efforts later than we should have. We were too focused on the product’s technical aspects. In hindsight, it’s clear that thinking about promotion from the product’s inception is the right way to go and makes the journey much smoother.

Top tip

Get involved in accelerators and support programs. We make an effort, and while we don’t always win, there are always benefits: CLOUD CREDITS (AMAZON AND AZURE), valuable contacts, media attention, and product improvements.

Final thoughts

For non-native founders, good English is vital. The founder will need to communicate extensively, and effective communication hinges on language proficiency.

Netris

Insights from Alex Saroyan, сo-founder of Netris

Netris is the new automatic netops. Netris enables customers to operate their physical/private networks like a cloud. 

Headquartered in Santa Clara, California

Founded in 2017

Initial investment: NDA

Marketing budget: NDA

How the idea came about: My fascination with Linux and networks began at the age of 5. I built a career in a large company, focusing on networks and data. While working within the industry, I recognized the future trend — the need for data centers to run applications. Buying equipment was simple, but it rarely came pre-configured for all needs. Most companies managed infrastructure with separate development and operations teams, which was not efficient. That’s when I realized the potential of the cloud. I approached my co-founders to create a product because I foresaw the cloud as a revolutionary way to rethink infrastructure.

Marketing and sales:

1. With my industry experience, we quickly found supportive contacts who were willing to give our venture a chance.

2. Interestingly, our third sale in the US came through social media. We posted something, an investor shared it, and a service station showed interest, possibly due to a connection with Armenia. We established warm contact, even though social media is primarily for information sharing in our field.

3. Some clients discovered us through our industry-specific articles, thanks to our strong content marketing partnerships.

4. While we experimented with cold outreach, it wasn’t our strong suit, so we switched to classic ABM marketing.

Do we need to be in the USA?

A client once advised us that with our product and technology, we should be in Silicon Valley. I’m glad we followed that advice. It’s an excellent place for engaging with investors. Our product is quite complex, and this has been universally acknowledged. We heard “no” more than 100 times before securing a 5 million dollar investment. Now, our team is split between the USA and Armenia, which, in my view, is an optimal arrangement.

Top tip

Consider forging strategic partnerships. These friendships can greatly boost your strength and provide valuable leverage.

Final thoughts

We fully understand that our product isn’t one that can be quickly installed on every child’s phone and rapidly scaled. Netris involves complex technology and a big mission. So, patience is key in sales and growth.

Nixtla

Insights from Azul Garza Ramírez, co-founder & CTO Nixtla

Nixtla is a startup that builds forecasting and time series software for data scientists and developers.

Headquartered in, San Francisco US

Founded in 2021

Initial investment: 4 500 000,00 $

Marketing budget: NDA

How the idea came about: We started off with a sales optimization consulting firm where we heavily relied on Python libraries. However, we hit a roadblock when dealing with several thousand Time Series — our tools fell short. We understood the need for more robust solutions and decided to create our own open-source ecosystem. That’s how Nixtla came into existence. Later, we developed StatsForecast, the N-Hits model, and our flagship product, TimeGPT, which was part of our ongoing efforts to solve these challenges.

Marketing and sales:

• We started by doing research in Mexico and engaging with various clients through a low-key, organic marketing approach. Our open-source libraries caught the attention of users who quickly explored the features. Now, our workflow involves clients expressing interest through email or LinkedIn. After setting up a call, we discuss how TimeGPT can be implemented in their companies. We’re selecting clients who we believe will integrate TimeGPT into their production almost immediately. We pick clients that best fit our goals from a large group of potential ones.

  
  

• 100% of TimeGPT’s clients are in the American market. Also, while our open-source libraries are used globally, around 60% of their clients are based in the US, and the remaining 40% are located worldwide. Accelerators prove useful in tackling complex issues. For example, we had some tension between the open-source ecosystem and product development. Before we started working with TimeGPT, we lacked a tangible product to sell despite having ideas on monetizing the open-source ecosystem. The accelerator’s advice was clear: focus on one thing.

  
  

• Techstars was our first investor, and we later secured additional funds through the preset. Currently, we’re considering a Series A round. 

• The American market moves faster than others, so it’s crucial to understand core problems quickly and provide practical solutions. It’s not just about theory, so having initial developments ready is key for quick integration.

Do we need to be in the USA?

In our case, we build global connections without the need for physical presence. Our core team operates from the US, but we also collaborate with individuals in Mexico and LATAM who assist in selling our products globally. Our outreach extends beyond San Francisco to places like New York, Seattle, and other regions across the United States. We seal deals without traveling in person because the majority of our sales happen in virtual meetings.

Mistake

Sometimes, we spend too much time contemplating rather than taking action. The best thing to do, we’ve found, is to dive in, play with the idea, and start building. Quick iteration is key, and it’s a lesson we’ve learned. Iterations tend to be cost-effective, and dwelling on too many thoughts can lead to financial losses. It took us a while to grasp this, but now it’s crystal clear.

Top tip

The best and hardest aspect of launching a company is the team. It’s crucial because you’ll be spending a lot of time with the people you form the company with. A founder’s journey can be isolating, and you’ll be grateful to have a good team. Even if you have clients and income, a lack of good relationships with partners or team members can make your job less enjoyable. My top tip is to seek out reliable partners and collaborators — it will benefit you greatly.

Final thoughts

We work with different companies, from startups to big sellers in the USA. Large companies typically take more time to finish a project due to specific requirements, terms, and security considerations. However, working with startups has its challenges, too. The key is to engage with various clients and then choose the strategy that will maximize your opportunities.

Throne

Insights from Heiner Stinner, сo-founder Throne

Throne provides the infrastructure where creators make their privacy-first Wishlist and let fans support them by sending gifts without sharing personal information. 

Headquartered in Dallas, Texas

Founded in 2021

Initial investment: NDA

Marketing budget: NDA

How the idea came about: Throne was built based on the idea of enabling all sorts of creators to safely receive support in form of physical gifts from their communities. All three of us consumed a lot of creator content and felt the urge to build something where you as a fan can show your support, knowing exactly this donation will be useful for creating more content. It was the frustration with the shortcomings of existing tipping methods that ultimately led to the idea of creating a creator gifting platform.

Marketing and sales:

1. The first sales are vital. Initially, we had support from friends and friends of friends, but acquiring independent users is important and should be done quickly. We used outreach tools to locate and engage with key opinion leaders in several niches.

2. One of our top growth strategies was tweets. People would tweet after receiving a gift, saying things like, “Hey Alex, thanks for the iPhone remote from my wish list.” Others saw these tweets, realized it was free, and quickly tried the product.

3. We promote the app through sponsored videos, Google ads, social media, and organic growth.

4. We noticed that YouTube videos in English reached a larger audience at one point.

5. As for Facebook ads, we didn’t use them until we had 250,000 users. We were wary of spending money without seeing results.

Do we need to be in the USA?

We've always been in the US from the get-go. We had Americans in our business operations and customer support teams. This is because 80%-90% of our product’s market is in North America, and we believe it’s the right approach. My two co-founders, Leonhard Soenke and Patrice Becker live in the US, while I travel between the US and Europe.

Mistake:

It’s not our fault but something we’ve seen in many companies. When a company receives too much investment, it sometimes treats that money as if it’s not their own. But don’t fool yourself. All money should be handled as if it’s your own, and this changes your attitude toward it.

Top tip:

Stick to your initial plans and stay committed. Many details can be sorted out later. What truly matters is your confidence in yourself and the team.

Final thoughts

I would recommend never opting for a cheap lawyer because the last thing you want is a host of legal problems at the start and the hassle of managing those issues in the future.