Incorporating your startup in the United States of America is the best deal one can ever launch. It can significantly enhance your access to global investors, making it a strategic move for entrepreneurs looking to scale their businesses globally. Here’s how incorporating in the USA can open doors to international funding opportunities.
1. Investor Confidence
The US is seen as a global business hub, offering a stable and transparent legal environment. This reputation builds investor confidence. In fact, in 2022, 62% of the world’s venture capital investments were made in US-based companies, according to the National Venture Capital Association (NVCA). Global investors often prefer US-incorporated startups due to the country’s strong regulatory framework, which provides legal protections and reduces the risk associated with their investments.
2. Access to a Larger Pool of Capital
Incorporating in the US positions your startup within the world’s largest venture capital market. In 2022 alone, US startups attracted over $200 billion in venture capital, representing more than half of the global venture funding, according to PitchBook. By being incorporated in the US, your startup becomes more attractive to this vast network of investors, increasing your chances of securing substantial funding.
3. Participation in Accelerator Programs
Many top accelerator programs, such as Y Combinator and Techstars, are based in the US and prefer or require startups to be incorporated there. These programs not only provide funding but also offer mentorship, networking opportunities, and exposure to a wide range of investors. Startups that graduate from top US accelerators have a 40% higher chance of receiving follow-on funding, according to a report by Seed-DB.
4. Increased Valuation
Startups incorporated in the US often enjoy higher valuations due to the perceived lower risk and the broader market opportunities available. A study by the Global Entrepreneurship Monitor found that US-incorporated startups had a 25% higher average valuation compared to their counterparts in other countries.
Incorporating your startup in the US not only boosts investor confidence but also provides access to a larger pool of capital, prestigious accelerator programs, and higher valuations. These factors combined make it a powerful strategy for attracting global investors and accelerating your startup’s growth.
Incorporating a Company in the US
Whether you're a rockstar developer or a budding entrepreneur, incorporating your company in the United States is an essential step; and when it comes to that, Firstbase offers one of the best services in the industry. Besides, below are other things included:
Formation of company in Delaware, Wyoming, or 32 other states
Open a business bank account without an EIN*
Expedited Tax ID (EIN) setup
$350K in deals and rewards
Lifetime expert support