‘Champions League’ Mindset Drives More SEA Founders to US
Felix Lee vividly recalls the one-month solo journey he embarked upon to San Francisco in 2018. At the age of 19, freshly graduated from pre-university, the budding entrepreneur from Singapore had just wrapped up the sale of his trip-planning startup, Packdat, to an Indonesian telecommunication company.
During this trip, a fundamental question intrigued him: Why do groundbreaking ideas predominantly originate in Silicon Valley? Meeting at least three new individuals each day, Lee began noting down every insight he gained. It eventually became apparent to him: “What we lack in South-east Asia is not resources, but the guts,” he concluded.
In Silicon Valley, many founders bypass the conventional path of earning credentials or establishing extensive networks. They dive straight into the bustling ecosystem of San Francisco with the ambition of giving birth to the next billion-dollar enterprise. Lee observed that this spirited approach was missing in Singapore.
Today, Lee has dedicated over half a year in San Francisco, nurturing ADPList, a platform that connects individuals with mentors, predominantly in the tech industry. His journey is not unique; many founders from South-east Asia are now opting for the US as their primary operational base.
With a decline in funding within South-east Asia over the past three years, it’s not surprising that entrepreneurs are exploring different landscapes. US investors, known for their higher risk tolerance, present appealing opportunities for burgeoning companies in emerging and deep tech sectors.
Tech in Asia identified 78 South-east Asian founders leading 66 companies now based in the US. While 19 of these entrepreneurs relocated after establishing firms in the region, the rest began their ventures in the US from inception. Though the list isn’t comprehensive, it reveals a trend of founders choosing to grow their businesses in environments conducive to global success.
If you’re a founder contemplating such a move, this could serve as a valuable starting point.
California attracts nearly two-thirds of these founders, particularly those associated with AI startups. Notably, 14 of the 15 AI ventures are located here, reflecting aspirations to be amid Big Tech. New York follows, hosting 14 South-east Asian founders, largely in healthtech and fintech sectors, benefiting from the state’s financial prowess and healthtech uptrend.
However, not all entrepreneurs set their sights solely on the West or East Coasts. Cuong Pham, co-founder and CEO of Eureka Robotics, recently situated his family in Atlanta, Georgia. The company now boasts four offices – in Singapore, Vietnam, Japan, and the new US location. Pham describes Atlanta as a vital transportation hub enabling efficient reach to US customers.
Following a successful US$10.5 million series A funding round, Pham recognized the US’s potential in manufacturing, offering market scales vastly surpassing those of Japan or Singapore. It’s not merely market size driving the move; the pace of business conversations advancing to confirmed orders in the US is significantly faster, proving advantageous for startups such as his. Pham anticipates that starting in 2026, revenues from the US will surpass those from all other markets combined.
Similarly, ADPList’s Lee noticed a significant portion of his platform’s user base originating from the US, contributing 80% of its revenue. To validate the market’s resonance with his product, Lee spent three months in the US, organizing ADPList’s first meetup which far exceeded his expectations. His increasing time in San Francisco highlights his dedication to tapping into the American market.
Nonetheless, the US market comes with its challenges. For Kenneth Lou, co-founder and CEO of Mito Health, relocating to New York thrust him into a fierce competitive landscape, competing against giants like Superpower and a16z-backed Function. Despite the competition, the appeal of a larger market with higher purchasing power than South-east Asia is undeniable.
However, for South-east Asian founders, higher labor costs are a significant obstacle. Teams are managed across different time zones, with US salaries often double those in Singapore. For example, at Eureka Robotics, less than 10% of their 60 staff members are in the US, tasked with crucial roles such as sales and engineering support. Conversely, core R&D remains anchored in Singapore and Vietnam.
Even well-funded companies face hurdles relocating staff due to unpredictable visa policies. Not all employees volunteer to embark on such a daunting move, and starting life in a new, expensive region is not for everyone.
Melvin Yuan, who ventured to the US in 2013 to broaden his real-time location analytics startup, understands these challenges intimately. Today, residing in San Francisco, he runs Stellar, a company facilitating back-office operations in Singapore and the US. Yuan admits that the transition demanded starting over and building new networks, posing amplified challenges for those with families.
“You have to work extra hard to set up life all over again,” Yuan shares, emphasizing the need for ambition in taking such a leap. Mito Health’s Lou echoes this, acknowledging the difficulty of leaving family behind, but in pursuit of bigger goals. “When you play football, you want to play in the Champions League, not just in your regional league,” he remarked, encapsulating the bold spirit driving South-east Asian founders to the US.
