The U.S. remains the most competitive and commercially attractive destination for high-growth technology companies. Despite a myriad of US market entry success cases in recent years, global startups often misunderstand what it takes to succeed here. Domestic product market fit and even intra-regional traction do not equal U.S. expansion readiness. Without a clear U.S. market entry strategy, many international startups burn through budget, often using up most of their money on sales outreach, with little or no results. 

According to Failory, 90% of startups fail, with the leading cause being a lack of market fit. Other common factors, such as not having the right leadership team or losing out market share to the competition, can also be significant obstacles. For international companies, these risks compound when entering unfamiliar environments with unique expectations, business norms, legal regimes, and buying behaviors.

At SOSA, we’ve supported over 380 startups from 12 countries through tailored US expansion accelerator programs. Here are five common mistakes we help international founders to avoid.

1. Treating the U.S. as one market

An Israeli AI startup acquired new customers in New York and assumed it could reach the same target market in the midwest. But buyers there had different expectations for integrations and pricing. Sales stalled because they approached a multi-market economy with a single-market plan.

To foreign startups, the U.S. may appear to be a single market. According to federal laws, it functions as one, but when assessing consumer behavior, differences in cultural and business norms, expectations for technological readiness and the legal complexity of state and municipal jurisdictions, suddenly the U.S. market is split up into regional, state, and even city-wide markets. 

Getting expansion right:
Start with one metro area. Localize the go-to-market strategy, messaging, and buyer engagement. Once early traction is there, tweak the process to approach other regions within the U.S., adapting to local market dynamics. 

2. Believing product strength means market readiness

A Spanish cybersecurity company entered the U.S. with strong traction in Europe. But their message didn’t resonate with U.S. corporations, mostly in the financial industry, who prioritized risk mitigation over technical capability. The founders expected the product to speak for itself. It didn’t.

Even companies with mature tech and product-market fit in their country of origin must reframe their offering to connect with U.S. stakeholders. Pro-tip: U.S. buyers reward speed, outcome-based messaging, and expect high product functionality 100% of the time.

Getting expansion right:
Translate the product value into business results. Tailor the message to align with U.S. buyer needs and decision-making patterns by making the product’s ROI crystal clear.

3. Underestimating the need for visibility

A Chilean SaaS company tried to test the U.S. with limited marketing efforts. But with over 71,000 SaaS providers in the U.S., poor online presence is the cost of a successful entry.

Focusing only on sales outreach without marketing and PR efforts will keep international startups from being seen by their customers, resulting in a skewed understanding of product value, low outbound response rates, and missed opportunities in inbound sales. Without brand awareness, the product’s offer doesn’t register.

Getting expansion right:
Invest in market-specific brand building and marketing channels. For international startups, building a visible presence that aligns with their sales strategy is crucial.

4. Underestimating regulatory complexity

From data privacy to employment law, the U.S. legal landscape is more complex than it appears. Founders often realize too late that basic operational steps–hiring a team, billing clients, or handling customer data–trigger compliance requirements they hadn’t anticipated. This complexity puts the U.S. at 55th in global rankings for ease of starting a business. 

Getting expansion right:

Don’t assume U.S. incorporation is enough. Consult experts and build a legal and tax accounting checklist that includes federal, state, and sector-specific obligations—especially if you’re in Fintech, Cybersecurity, or a Health-related sector.

5. Leading expansion remotely

A Taiwanese startup tried to manage U.S. employees, customer relationships, and fundraising from abroad. While the founders were quick to hop on flights to attend business meetings with qualified leads in SF and LA, they missed subtle market signals, struggled to build broad ecosystem recognition, and lost momentum.

U.S. buyers expect a local presence. According to Gartner, 64% of enterprise B2B buyers say in-market relationships directly influence purchase decisions.

Getting US expansion right:
Sending a founder to live in the U.S. for a few months will be more effective in launching a successful expansion than entrusting a fractional senior commercial lead to do the job. Industry recognition, buyer trust, and relationships with investors is best led by a founder, at least in an expansion’s earliest stages. Local partners can be immensely helpful, but the direct involvement of a founder is crucial until the wheels start turning on their own.

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U.S. expansion is not about replication. It’s a strategic rebuild. The international startups that succeed here are the ones that localize early, adapt quickly, and approach the U.S. with highly-involved founders at the helm.

The risk of getting it wrong is not just lost budget. It’s lost momentum. 

Ready to expand into the U.S.?

SOSA works with global startups through tailored US expansion accelerator programs.. We help companies validate product-market fit, build a qualified pipeline, and drive sales execution. Our consulting and sales teams work alongside your leadership to make your U.S. entry succeed.