Southeast Asian technology startups are increasingly targeting the United States for expansion, driven by the country’s mature market and leadership in artificial intelligence (AI). Companies like Singapore’s JigsawStack, founded in July 2024, have found early success by catering to U.S. clients seeking automation tools for engineering tasks. JigsawStack secured $1.5 million in pre-seed funding from Antler‘s Southeast Asia fund in October and February, while focusing on U.S.-based customers through a cross-border model (Goel, 2025).
The U.S. market’s concentration and higher margins make it an attractive destination for Southeast Asian startups. realfast, a Singaporean startup backed by Peak XV Partners, has identified the U.S. as its most lucrative market for AI agents in IT systems. Similarly, Patsnap, a software company for research and development projects, reports that over half of its 5,000 customers are based in the U.S., highlighting the country’s demand for AI-powered solutions in biotech and advanced manufacturing (Goel, 2025).
U.S. Expansion Supported by Funding and Presence
Participation in events like the SelectUSA Investment Summit 2025 further illustrates the region’s commitment to U.S. expansion. Source of Asia – SOA, representing Vietnamese and ASEAN businesses, engaged with U.S. state representatives to explore investment opportunities and establish partnerships, particularly in manufacturing and tech sectors (Source of Asia, 2025).
Despite the allure of the U.S. market, many startups maintain their headquarters in Southeast Asia to leverage favorable business climates. Singapore, for instance, offers strong geopolitical relations, tax incentives, and government grants for tech companies. Multiplier, an HR platform backed by Tiger Global and Peak XV, continues to operate from Singapore, citing these advantages (Goel, 2025).
Southeast Asia Remains the Operational Foundation
The trend of Southeast Asian startups expanding into the U.S. follows a period of rapid growth in the region’s digital economy. In the first quarter of 2025, tech startups in Southeast Asia raised $909 million, a 30% increase from the previous quarter. Singapore attracted the majority of these investments, securing $865 million and maintaining its role as a regional tech hub (Tech Collective, 2025).
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References
Goel, S. (2025, June 2). Southeast Asia’s tech startups are chasing the American dream. Business Insider. https://www.businessinsider.com/southeast-asia-tech-startups-building-products-us-america-b2b-vc-2025-6
Source of Asia. (2025, May 14). Our Journey at SelectUSA Investment Summit 2025: Connecting ASEAN to U.S. Investment Opportunities. https://www.sourceofasia.com/our-journey-at-selectusa-investment-summit-2025-connecting-asean-to-u-s-investment-opportunities12840/
Tech Collective. (2025, April 25). Tech startups in Southeast Asia raise $909 million in Q1 2025, 30% higher than Q4 2024: Report. https://techcollectivesea.com/2025/04/25/tech-startups-in-southeast-asia-raise-909-million-report/
