Despite venture capital funds creating opportunities for Indian artificial intelligence (AI) startups to enter the US market, securing initial clients in America remains a significant challenge. American companies typically require proven work experience before entering into agreements with new suppliers, which complicates startups' efforts to attract initial customers.
Venture firms such as Antler India and All In Capital have launched specialized programs to help local AI startups establish themselves in the United States. While some companies have already relocated their headquarters, found clients, and attracted subsequent funding, their expansion plans are complicated by high costs for local hiring and visa issues.
Details on Challenges
Ashish Bhatia, founder and CEO of India Accelerator, noted that winning the first few clients is one of the main difficulties for Indian startups aiming to enter the US market. He explained that firstly, buyers in the US require references, making the acquisition of the first two or three clients the most difficult. Secondly, requirements for security, regulatory compliance, and architecture are significantly higher. Thirdly, hiring sales and business development staff in the US is expensive, and visas for founders, who often move between countries, create additional obstacles.
Similarly, All In Capital identified key challenges as client access, achieving product-market fit in a new market, and building a local network. Antler India pointed out another barrier—the lack of a peer network. Founders entering a new market may not have reliable contacts for advice on hiring, pricing, legal structures, or pitching to investors.
To overcome these difficulties, venture funds provide support that goes beyond mere financing. They assist startups in finding potential clients, building local connections, and managing operational requirements.
Examples of Support Programs
Antler India launched the Embark program in May 2025. Over this period, more than 50 startups participated across four cohorts, including over 15 from India. Raghav Goyal, Investment Director at Antler India, reported that seventy-five percent of participants now have paying clients or active pilot projects in the US. More than half of them have secured subsequent rounds of funding. Nearly 50 percent have moved to the US, converting their holding company into an American structure and obtaining O-1 visas for founders. Most of them signed their first contract with an American client within three to four weeks of participating in Embark. Among the startups that relocated their headquarters to the US are Dodge, KuboCare, Nudge, and Aina.
Likewise, All In Capital launched the Golden Ticket program in January of this year to aid Indian startups in expanding into the American market. The program received over 750 applications in the first ten days and aimed to select 20–30 startups. The program's portfolio included Vasuki AI, which develops commodity hedging solutions; Tross, which creates a data layer and application programming interface (API) for AI agents in healthcare; and Mowito AI.
Among these companies, Mowito opened an office in Detroit, started pilot projects with American clients, and attracted additional funding from a Canadian investor. Kushal Bhagya, Co-founder and Partner at All In Capital, emphasized that early progress should be assessed based on the quality of client interactions and pilot projects, not just the number of users.
Recognizing the complexities of entering a new market, venture funds are increasingly offering operational support alongside capital. For instance, Antler India's Embark program facilitates introductions to American clients and provides practical assistance in early sales. It also collaborates with partners such as Deel, Rho, Alma, and Inkle, helping startups obtain visas and establish American entities.
Nevertheless, not all Indian startups aiming to expand into the US relocate their headquarters abroad. As Jasnoor Gill, Investment Director at Antler India, noted, 'Some startups keep their engineering and product teams in India while developing American teams, so relocation is more related to proximity to clients and capital than leaving India behind.'
However, the path of expansion was different for each company. Some firms participating in these programs decided to return. According to Gill, a couple of startups returned to India, usually because their core clients or teams were better served from that country. Nevertheless, the more common scenario is that founders develop higher ambitions regarding the US after spending time with American clients and investors.
