Chasing US capital, Indian AI startups weigh cost of moving amid challenges

Even as venture capital (VC) firms create pathways for Indian artificial intelligence (AI) startups to enter the US market, winning their first few American customers remains a major challenge. US enterprises typically seek a proven track record before signing up with new vendors, making it difficult for startups to secure their initial clients. 

VC firms such as Antler India and All In Capital have launched programmes to help homegrown AI startups establish a foothold in the US. While several startups have shifted their headquarters, secured customers, and raised follow-on funding, high local hiring costs and visa hurdles continue to complicate their expansion plans. 

According to Ashish Bhatia, founder and chief executive officer of India Accelerator, securing the first few customers is among the biggest challenges for Indian startups entering the US market. “First, US buyers want references, so the first two or three logos are the hardest to win. Second, security, compliance and architecture expectations are much higher. Third, hiring US sales and business development people is expensive, and visas for founders who travel back and forth add friction,” Bhatia said. 

Similarly, All In Capital identified customer access, finding product market fit in a new market, and building a local network as key challenges. Antler India highlighted another difficulty: the absence of a peer network. Founders entering a new market may have no trusted contacts to consult on hiring, pricing, legal structures or investor introductions. 

To address these challenges, VC firms are providing support beyond funding, helping startups access potential customers, build local networks, and navigate operational requirements. 

Antler India launched its Embark programme in May 2025. Since then, more than 50 startups have participated across four editions, including over 15 from India. Raghav Goyal, director of investments at Antler India, said, “Seventy-five per cent now have paying customers or active pilots in the US. Over half have raised their next round. Almost 50 per cent have moved to the US, with their holding company flipped to a US entity and O-1 visas in place for founders. Most of them signed their first US customer within three to four weeks of Embark.” Startups that have shifted their headquarters to the US include Dodge, KuboCare, Nudge, and Aina. 

Similarly, All In Capital launched its Golden Ticket programme in January this year to help Indian startups expand into the American market. The programme received more than 750 applications within its first 10 days and aimed to select 20-30 startups. Its portfolio includes Vasuki AI, which is developing AI solutions for commodity hedging desks; Tross, which is building the data and application programming interface (API) layer for AI agents in healthcare; and Mowito AI. 

Among these, Mowito has established an office in Detroit, launched pilots with US customers, and raised a follow-on funding round from a Canadian investor. 

Kushal Bhagia, cofounder and partner at All In Capital, said early progress should be assessed based on the quality of customer engagements and pilots, as well as the ability to demonstrate value in specific workflows, rather than simply the number of users. 

Recognising the challenges of entering a new market, VC firms are increasingly offering operational support alongside capital. For instance, Antler India’s Embark programme facilitates introductions to US customers and provides hands-on support for early sales. It also works with partners including Deel, Rho, Alma, and Inkle to help startups obtain visas and setting up US entities. 

However, not every Indian startup looking to expand into the US is shifting its headquarters overseas. “Some startups keep their engineering and product teams in India while building out their US teams, so the move is about being close to customers and capital rather than leaving India behind,” said Jasnoor Gill, director of investments at Antler India. 

The expansion journey, however, has not been the same for every startup. A few firms participating in these programmes have also reversed their relocation decisions.