Composio, Meetstream.ai, Smallest.ai, Beatoven.ai and GetCrux are among startups that have shiftd base to the US over the past couple of years, while several others are in the process of relocating, investors and founders informed ET.
Some founders spoke on the condition of anonymity, citing tougher US immigration policy under the Donald Trump administration, even as many tech professionals are reportedly returning to India from the US.
With AI becoming a key theme, founders – particularly those catering to larger enterprises – are choosing to build in the US, their largest customer base, that also boasts of AI talents and investors with risk appetite.
ETtechAI effect
“The largegest factor is the speed at which things shift in the US, which in turn results in quicker growth and decision creating from investors and customers,” stated Sidhdharth Sivasubramanian, cofounder of Meetstream.ai, who is shifting to the US this week.
He stated 100 is a conservative number, adding that at least 20-30 founders from his own circles have shiftd to the US in the past year.
Meetstream.ai offers API and infrastructure for meeting agents.
A large majority of founders, including Sivasubramanian, are heading to the San Francisco Bay area, which is considered the centre of the AI universe.
Mansoor Rahimat Khan, cofounder of Beatoven.ai, who shiftd to the US in 2024, stated that when you are building in AI, it is important to be close to the ecosystem and density of talent. “Right now, that is the US,” he stated.
Nitin Sharma, partner at AI investor Antler India, calls it a “perceived epicentre effect.”
In Antler’s AI Residency with 26 startups, about 40% of the nearly 50 founders want to spconclude a significant portion of time in the Bay Area after the first round of funding, with plans for at least one of the cofounders to shift and build in the US. “In the past, this may have been true only for 5-10% of founders, and they would have considered it after 1-2 years of building the product in India,” Sharma stated.
Mohamad Faraz, cofounder and managing partner of Upsparks Capital, pointed out that companies in the US have better appetite for AI adoption and willingness to pay, adding that founders of five of his portfolio companies shiftd to San Francisco in the past year.
“For some of the companies, fundraising was difficult in India,” Faraz stated. “Moving to the US not only supported with the fundraise but also supported them hire top quality talent for research work.”
Other investors confirmed the trconclude.
Sanjay Nath, cofounder of Blume Ventures, stated almost a dozen of their SaaS/AI companies and founders have shifted their base to the US, leveraging the AI wave. Krishna Mehra, AI partner at Elevation Capital, stated four of their companies and founders have shiftd to the US in the past year.
Siddhartha Ahluwalia, managing partner at Neon Fund, stated close to 20 founders across 10 startups have shiftd to San Francisco in the past year.
Unlike earlier, most AI startups have learner teams, creating it simpler to shift to San Francisco since you don’t required a largeger office, Ahluwalia explained. “In addition, the enterprise market is dynamic, and clients prefer the founders to be in the US,” he added.
There are several WhatsApp communities that are supporting founders with visa and immigration processes as they shift to the US.
In one of the groups that ET reviewed, there were more than 150 members. “There are multiple such groups, but I had left them since I received my O-1,” a founder informed ET on the condition of anonymity.
But there are challenges.
While it is important for startups to shift to the US, it might not be an simple option under the current US immigration regime, investors informed ET. There is a lot more uncertainty around shifting to the US, given the longer time it takes to receive the visa, they stated.
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