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tart typing the American dream in Google and a suggestion will come up: the American dream is dead. Yet, two of the most promising startups in Brazil, EverWrite and DeskMetrics, are about to move to the US, with headquarters in Delaware. So why have they decided to leave Brazil?
could be described as a Google Analytics for desktop software (see our previous story) again, a very international market. Its not just about international expansion; for example, Brazil as a market is not very interesting for DeskMetrics, with a few exceptions. According to its CEO, Bernardo Porto, most of the software created in the country is managementrelated, which isnt relevant for his startup. There are also cultural barriers, says Bernardo; while foreign tech companies like measuring many variables, Brazilian companies too often rely on guesstimates. Besides, even large IT companies are still wary of cloud computing and prefer internal servers, which increases operational costs. As a result, most of DeskMetrics largest clients are software editors based in the US and Europe, such as Adobes competitor Nitro PDF.
Dealing with foreign clients and investors from Brazil: not an easy task
The problems start when DeskMetrics has to bill its clients. Receiving payments in dollars in Brazil is extremely complicated for relatively small businesses which dont have a bank account in the US. Its also very expensive, due to a combination of high bank fees and bad conversion rates. Added to the tax burden in Brazil, it reaches a level where it could compromise DeskMetricss viability. This led Bernardo to realize that his company needed to move to the US and open a US bank account as soon as possible. Hes even given credit to some clients who will only pay once DeskMetrics incorporates in the US.
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Although chances are that DeskMetrics will incorporate in Delaware, its offices will probably be located in New York. For Bernardo, this is one more sign that this move is not about the startup clich and living the American dream in Silicon Valley. If the company is moving to the US, its out of necessity. The choice of New York as a destination is also rational; DeskMetrics already counts with a staff member there. Bernardo met Steve Hazeltine when the Bostonian was living in Brazil. Unstead of giving Bernardo English classes, Steve ended up working for DeskMetrics. Hes now the startups Manager of Sales and Business Development in New York, and will be instrumental in getting the company to move there. Actually, Bernardo himself might not move to the US, as getting a visa is all but simple. He may even be more likely to move to Chile, at least temporarily: his startup participated in the latest Start-Up Chile application round (see our story). Although he doesnt know yet whether or not his company will be selected to take part in the program, he would be very interested in the opportunity to interact with other global startups and learn about other cultures. DeskMetrics interest in leaving Brazil goes beyond attending its clients. It could also make it easier for the startup to raise the funds it needs to scale. While it already raised US$200,000 from Brazilian angels and recently reached break-even, its now seeking over $1m to scale. According to Bernardo, it would be easier to raise such an amount from American investors. However, these usually prefer to invest in American companies as they arent familiar enough with the Brazilian legal system one more reason for DeskMetrics to incorporate in the US.
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2009, it has contributed to creating a startup ecosystem in the country. Bernardo is also committed to develop the local scene; hes one of the co-founders of ABS, the recently created Brazilian Startups Association, alongside with Gustavo Caetano from Samba Tech (see our previous story). In other terms, both Bernardo Porto and Diego Gomes are hopeful that Brazil is changing for the best but for the time being, moving to the US is what makes most sense for their companies. What about you, would you move to the US if you were running a Brazilian startup now?
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