I first met Ivan Burazin earlier this year at Shift, a developer focused conference he founded in Croatia. He was attending as a speaker — after selling the event company to Croatian scaleup Infobip — and I saw him demoing his latest venture, Daytona, a platform that simplifies the setup and use of development environments.
Daytona, unlike Shift, is an American company HQ’d in New York. Below Ivan shares his top tips on how to set up in the US as a European.
Understand why you're choosing the US
Will running a company in the US create less friction for your startup? How? Also, how will it remove obstacles to you scaling? Some of the reasons could be:
- Risk taking: The US’s culture of innovating, taking risks and iterating quickly means both investors and customers are more open to newer companies. For a company like Daytona, this means we can test in market and iterate quickly.
- Capital: The US VC game is more developed and has more funding opportunities.
- Growth: A US presence can make it easier to expand globally.
- Credibility: US companies are still looked up to as leaders in the tech industry.
Decide where you want to incorporate
Delaware is still considered the number one place to incorporate your startup due to its startup-friendly regulations, even with the conversations around the changes that might occur. We knew we needed to raise money and being a Delaware-incorporated company made it easier for US investors to put money in, accelerating our access to capital. We've just closed a $5m seed round, six months after we closed our pre-seed of $2m.
Also, not having to worry about navigating the complex legal and financial structures that vary when incorporating in multiple EU countries gives us more time to focus on building our product.
Get up to speed with US regulation
The US is significantly more litigious than most of Europe. You will need more comprehensive liability protection, contracts and reviewing of contracts. Get legal counsel before you even start.
Budget for higher expenses. You will have more expensive operational costs in the US. This includes talent acquisition, healthcare and the legal services mentioned above. Ensure they're factored into your business plan and funding strategy.
Don't underestimate US competition
While Europeans maintain a steady pace, American rivals work fiercely and grow at an immense speed — they have a winner-takes-all mentality. Even big tech companies might suddenly enter your market. To compete, you have to adapt to their culture. Move faster, adapt quicker and consider raising more capital than initially planned.
Build a strong network
Everything works on who you know. It's crucial to build a strong network of local contacts — including legal and financial advisors. Embrace the US way of doing business when it comes to networking. Americans prioritise sourcing and connecting with people that can have an impact on their goals. This means networking might feel more transactional to you as people will politely move on from their chat with you if they don't find any synergies.
On the subject of... building in North America
1. The CEE American dream. CEE startups are more likely to move their headquarters to the US than their Western European peers; 17% of CEE startups that have raised more than €1m in funding have moved abroad. Why?
2. Do you need a Delaware company to set up in the US? Probably.
3. Don’t fancy the US? Break into Canada instead.
