Is United States a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

United States has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what United States gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in United States

Funding is one of the most critical ingredients in building a successful startup – and United States offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

The early-stage funding environment for startups in the United States is dynamic, attracting the largest share of global funding despite recent fluctuations. Notable VC firms active in this space include Sequoia Capital, Andreessen Horowitz (a16z), and General Catalyst. Angel investors also play a significant role, with estimates suggesting over 250,000 active angels in the US funding thousands of companies annually. Government support exists through programs like the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) which offer non-dilutive funding for R&D. However, challenges persist. Competition for investor attention is high in a crowded market. While seed funding saw some resilience compared to other stages during recent downturns, the number of seed deals declined significantly between Q1 2022 and Q4 2023. A key concern is the difficulty many seed-stage companies face in securing follow-on Series A funding, leading to a potential "seed-to-Series A gap" where startups stay longer at the seed stage or fail to progress. Investors are also becoming more selective, focusing on profitability and proven traction.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

United States has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

The United States boasts a dynamic startup and innovation culture, characterized by high entrepreneurial activity and a willingness to embrace risk and learn from failure. Coworking spaces are prevalent, offering flexible environments, resources, and networking opportunities crucial for startups. Numerous tech events and conferences across the country connect founders, investors, and industry leaders. While the ecosystem is competitive, early-stage founders can find support through various avenues, including accelerators like Y Combinator and Techstars, which offer mentorship, resources, and funding, alongside more personalized support from early-stage investors and specialized programs.

For many entrepreneurs, the energy and resources available in United States can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like United States, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in United States is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

The U.S. has a significant talent pool for startups, partly due to its higher education system which attracts both domestic and international students, fostering innovation and entrepreneurial ecosystems. However, a disconnect exists between graduate skills and the specific needs of 21st-century startups, making finding appropriately skilled talent a challenge. Industry-specific skills highly sought by startups include tech-related abilities like data analysis, programming (Python, Java), and digital marketing, alongside operational roles and crucial soft skills such as resilience, problem-solving, adaptability, and an entrepreneurial mindset. Local talent supports entrepreneurial growth by providing firsthand market knowledge, cultural understanding, and valuable community connections, which can aid in areas like marketing, customer service, and navigating local regulations. Hiring locally can also be cost-effective and contribute to community economic growth and stability.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in United States can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

United States boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

The United States offers a robust ecosystem for startups, featuring extensive infrastructure and support systems. Key resources include incubators and accelerators providing mentorship, networking, resources, and sometimes seed funding to help early-stage companies develop and scale. Venture capital firms and angel investors are crucial for providing necessary funding. Government initiatives significantly bolster this ecosystem. The Small Business Administration (SBA) offers various loan programs, like the 7(a) and Microloan programs, accessible to startups for funding needs. Programs such as the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) provide grants for research and development in technology sectors, encouraging innovation and commercialization. These resources collectively help startups navigate challenges, secure funding, and accelerate growth.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in United States. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can United States Be Considered the Best Place to Launch a Startup?

There’s no doubt that United States provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in the US face significant hurdles. Intense market competition requires differentiation and strong market fit to stand out against established players and other startups. High costs of living in major startup hubs like Silicon Valley, New York City, and Boston make attracting and retaining talent difficult due to the need for higher salaries to offset expenses. This also increases operational costs and can deter investors wary of higher burn rates. Navigating complex federal, state, and local regulations, including employment laws, licensing, and tax obligations, adds another layer of challenge, potentially leading to penalties if not managed correctly.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in United States or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while United States offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash