I’ve spent the last 12 months living the challenge of an international startup trying to navigate a successful entry into the US market.
So I know that for other international B2B SaaS startups, taking that first big leap into the massive US market is going to be equal parts exhilarating and nerve-wracking.
It's a make-or-break moment that can propel a young company to meteoric heights or leave it floundering in the ultra-competitive American landscape.
Luckily, Jen Abel and her team has been there and done that - over 350 times, in fact. As the co-founder of Jjellyfish, Jen has guided hundreds of international startups through this critical zero to one journey, helping them navigate the unique challenges of penetrating the US B2B SaaS market.
With a track record of building powerhouse sales teams at ground-breaking companies like General Assembly and The Muse, Jen knows a thing or two about what it really takes to win in this high-stakes arena. Her hard-won insights are pure gold for any founder looking to cement their foothold stateside.
So I cajoled her into dishing out her battle-tested strategies for crushing it in the US. From crafting a value prop that resonates with American buyers to assembling a killer sales force and mastering those subtle cultural nuances, she spills it all.
Whether you're an international founder preparing for your big American debut or a wily veteran looking to sharpen your approach, you won't want to miss this.
Key Takeaways:
Visionary Founders at the Helm: The critical role of a startup founder in leading initial market entry sales efforts and their hands-on involvement should not be undervalued.
Product-Market Fit Across Borders: The false notion that product-market fit in one region will seamlessly transition into another can lead to premature scaling in new markets.
Strategic Market Entry Points: Choosing between high-velocity, lower revenue per customer (RPC) markets or high-value, higher RPC markets will significantly affect a startup's scaling journey.
The Role of Visionary Founders in Market Expansion
One of the overarching themes that emerged from the conversation is the indispensable involvement of founders during the expansion process. As Jen explains, initial sales in a new market require a visionary approach that only the startup’s founder can fulfill.
Involve the Founders, Involve the Vision
Founders are essential not only for their vision but for aligning that vision to market realities. They uniquely sell access to a transformative perspective. Jen emphasizes, "early sales is the founder selling themselves... where you see something that no one else is seeing." Direct quotes from the transcript further solidify this stance:
"the importance of early sales is the founder selling themselves. Selling that access to you, the visionary, where you see something that no one else is seeing..."
This direct involvement of founders aids in robustly tackling market complexities. Starting from scratch in the US market, founders bring the original passion and vision which is crucial for articulating the uniqueness of their product in a saturated ecosystem.
Delegation Could Mean Derailment
Jen cautions founders against delegating sales responsibilities too quickly. Founders’ insights shape the sales narrative essential for connecting with new markets and customers. Particularly in the US, where the startup terrain is crowded, delegating without a solidified foothold might result in lost direction and message.
Refining Product-Market Fit for New Geographies
We talked about the nuanced challenges of transferring product-market fit from one region to another, debunking the myth that success is easily portable across borders.
In fact, Jen validated a hunch that I had - that it’s harder to enter the US market if you’ve got >$1M in ARR in your home market, than if you were coming in from scratch.
Two reasons:
1. Market Fit Misconceptions
Abel spells out the hard truth: what works in one market will not automatically work in another. The US market is notably unique, with different dynamics, needs, and competitive landscapes. Abel’s words underscore this:
"The biggest misstep a lot of founders make is they find incredible success in the APAC region and... they assume we've got product market fit, I'm going to go out and hire a US head of sales and they will take it from here."
Asian startups must prepare for the "massive invalidation before validation" due to this discrepancy. With the differing requirements and expectations of US consumers, modifications and adaptations are critical for gaining traction.
2. Overcoming Overbuilt Products
The hurdle of navigating an "overbuilt" product is another challenge Jen highlighted. Products are often developed with regional markets in mind, and founders might find they've over-invested in features that don't resonate in the US.
“it's very obvious to a U. S. buyer when something feels like it wasn't necessarily built here.”
The big question to product teams is how to retain the core of what made the product successful outside the US, while iterating and optimizing for American users.
[Incidentally, this is an ongoing challenge we’re tackling at EngageRocket. If you know anyone who’s done this well, I’d love to hear from them! Or if you’d like a deep dive into the challenges and our solutions, hit ‘Reply’ and I’ll put a post up about it]
Choosing the Appropriate Market Entry Strategy
The strategy for entering the US market – targeting either the high-velocity lower RPC or the high-value higher RPC segments – can profoundly influence the expansion trajectory. Jen provides practical guidance on selecting a niche.
High-Velocity vs. High-Value
In a thought-provoking analysis, Jen breaks down the strategic choice between two sales models. Startups must decide whether to pursue a high-turnover, lower-cost approach or to target fewer, high-value deals. Her emphasis on playing either a "high velocity" or "high value" game is clear:
"There's two models, high velocity or high value. Which one do you want to apply? One is much more product led, marketing led, and then the other is very much sales led."
Indecision: A Road to Nowhere
Startups stretching to appeal to both market segments face the risk of becoming stranded. Clarity of focus ensures that startups channel their efforts and resources efficiently, significantly increasing their chances of successful penetration in a formidable market.
Tech startups in Asia or Europe eyeing North American opportunities must navigate a complex and unpredictable terrain. Key strategies including retaining visionary founders at the forefront, recalibrating product-market fit, and distinguishing between high-velocity and high-value market strategies are vital.
As Jen profoundly notes, the journey is filled with more invalidation than validation, requiring resilience, adaptability, and an unwavering commitment to the founding vision.
Honestly, while I tried to summarize the points here, the chat with Jen was much more detailed and nuanced and helpful if this is at all an interesting topic for you. I urge you to listen to it in its entirety. Thanks for sharing Jen!
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Lessons in Cracking the US B2B SaaS Market from 350+ Startups