Accure’s US Expansion Strategy: Lessons from a European Deep Tech Startup
For European tech startups, US expansion often feels like a necessary but daunting step. In a recent episode of Category Visionaries, Accure Battery Intelligence founder Kai-Philipp Kairies shared how they turned this challenge into a success story, achieving 25% US revenue within their first year.
The Real Cost of US Expansion
For European founders considering US expansion, Kai offers a sobering reality check: “A good rule of thumb for a european Founder would be calculate the worst case in terms of costs that you believe the US expansion will cost you, and then add 50% to that and that will be a healthy baseline of what to expect.”
The reason? “The US is so much more expensive than Europe in terms of salaries, in terms of operations, many other things.”
The Power of Strategic Investment
Accure’s US expansion was catalyzed by an unexpected opportunity. “In 2021 when it got really hot, a us investor preempted our a round and their pitch to us was very convincing,” Kai explains. “They basically said, look, we know that you dont need money right now, but we believe that were the perfect investor for you guys and we’re going to make you an offer that you won’t refuse.”
This wasn’t just about capital. The investor, Blueback Capital, provided crucial support: “Not only did they massively support us with finding our feet in the United States, setting up the entity, they also introduced us to the person who would a few months later become our president of North America.”
The Three Pillars of Success
Kai identifies the key elements that enabled their successful expansion: “If you’ve got contacts to first customers, if you’ve got a person you can rely on as the leader of the subsidiary, and then some introductions just to the general network. That’s like three out of four most important things that kind of fell into our lap with that investment.”
Rapid Revenue Growth
The strategy paid off quickly: “Last year, this is just less than one year after we started to subsidiary, already a quarter of our revenues came from the US business,” Kai notes. “Most startups fail and were not only not failing, but actually growing very nicely and sustainably over there.”
Looking to the Future
Accure’s ambitions extend beyond just the US market. When asked about future revenue split, Kai projects: “I believe potentially the US and Europe could be an even split. But I think if we look at three to five years out, we will probably also increase our engagement in Asia. And so I think that we might end up with a, well, lets say 40 20 split, US, Europe and Asia.”
Key Lessons for European Founders
- Budget realistically for US costs – then add 50%
- Find investors who can provide more than capital
- Prioritize finding strong local leadership
- Focus on building initial customer relationships
- Leverage investor networks for market entry
For European founders considering US expansion, Accure’s experience shows that success requires more than just funding. The right strategic partners, local leadership, and realistic cost expectations are crucial elements of a successful expansion strategy.
The key is recognizing that US expansion is a complex, multi-faceted challenge that requires careful planning and strong local support. While the costs and complexity can be daunting, with the right approach and partners, it’s possible to achieve significant growth in a relatively short time.
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