Since its launch in July 2024, JigsawStack — a Singapore-based startup founded by Yoeven Khemlani — has quickly attracted customers from the U.S. The company creates small AI models to automate the work of software engineers, meeting growing demand from overseas markets.
The figures show that the number of venture capital deals in Southeast Asia tripled from 2015 to 2021, reaching 1,800. The region’s GDP grew by more than 62% to $4.12 trillion, fueled by a growing middle class. But rather than focusing on the domestic market, many startups are looking to the US for bigger opportunities.
The number of venture capital deals in Southeast Asia increased significantly from 2015 to 2023, peaking in 2021 with 1,771 deals. (Source: PitchBook)
Many founders believe that the US market has higher purchasing power, is more concentrated, and is less price sensitive, making it easier for them to reach customers and scale than serving individual countries in Southeast Asia.
In addition, the US is leading in artificial intelligence and technology, making it an attractive destination for startups. "We are living in an AI-first world , where the US is the center of breakthrough advances," said Shailendra Singh, CEO of Peak XV.
Southeast Asian startups have a huge cost advantage, offering more efficient solutions than their US counterparts. However, they also face many challenges, especially the cost of importing hardware due to tariffs on China.
In addition, expanding to the US also makes it easier for companies to raise capital. “Investors tend to underestimate foreign startups,” said Nataliya Wright, a professor at Columbia Business School. “But if a startup has customers in the US, it gives them a big advantage in future funding rounds.”
Startups can raise capital more easily when they are present in the US.
Despite expanding to the US, many companies still choose Singapore as their headquarters. The country has an attractive tax policy, no capital gains tax, and many supports for technology companies.
Some startups have adopted a split-personnel model, sending one co-founder to the US while the other continues to manage operations in Southeast Asia. For JigsawStack founder Khemlani, having a presence in the US was crucial to connecting with customers and expanding their network.
JigsawStack Founder Khemlani.
With the rapid development of AI technology, Southeast Asian startups are taking advantage of the opportunity to enter the US market. This will not only help them grow but also contribute to shaping the global technology landscape in the coming years.
Source: https://vtcnews.vn/ai-ly-do-startup-dong-nam-a-di-tim-giac-mo-my-ar946720.html
Comment (0)