Asia-based AI founders relocate to Silicon Valley amid funding slump

A growing number of Asia-based AI founders are relocating to the United States, pulled by the U.S.’s massive customer base, abundant capital, and deep talent pool, and pushed by a protracted venture funding slump in Asia. For AI builders and product teams considering global scale, the trend highlights sharp differences in market access, investor expectations, and regulatory friction that can shape cross-border strategy.

What happened

Global venture capital firm Antler has helped more than 30 Asian founding teams relocate to the U.S. since 2025. “Most of the founders we see in Asia these days want to build global businesses, and the attraction of being in the U.S. is unmistakable for that purpose,” Jussi Salovaara, Antler’s co-founder and managing partner of Asia, told Fortune. The U.S. captured roughly 68% of all startup funding last year (2023 per KPMG) and about 80% in Q1 2026, while Asia’s share dropped to around 9.6%.

Southeast Asia’s venture capital space is in a particularly deep slump. Venture funding to Southeast Asian tech firms fell almost 80% between 2022 and 2024, from approximately $10.1 billion to $2.2 billion. The region now accounts for roughly 0.5% to 2% of global VC investment, with most APAC investment concentrated in India and China. Even Southeast Asian IPOs, which rose 76% to $6.5 billion in 2025, remain a sliver compared to Hong Kong’s $37 billion in IPO proceeds. Several recently listed companies like JustCo and Foundation Healthcare are trading below their offer price.

Founders are also navigating fragmented markets. “When you invest in the U.S., you’re investing in the whole country, which is a huge market,” said Yoevan Khemlani, founder of Interfaze, who moved from Singapore to San Francisco. “But when you invest in Southeast Asia, you have to pick which country you want to invest in.”

Why AI builders should care

For AI founders and product teams building from Asia, the trend signals that market access, talent pools, and funding dynamics disproportionately favor the U.S. Teams planning global scale must factor visa timelines, market-entry timing, and differences in investor storytelling into their roadmaps. In Asia, investors are very focused on revenue growth and profitability relatively early, while in the U.S., they pay more attention to your vision and the problem you’re looking to solve, Salovaara noted. That cultural shift can affect fundraising strategy.

Geopolitical friction also matters. Western firms may be uncomfortable working with a startup based in China, especially for business models that rely on sharing data. Navigating restrictions in both the U.S. and China becomes more complex as AI is seen as a strategic technology.

Practical implications

Indie hackers and product teams should evaluate whether to pursue U.S. market entry or a regional focus based on customer concentration and regulatory environment. For some, a remote-first growth model or strategic partnerships may be preferable to avoid visa delays and market-entry friction. The U.S. federal court blocked the administration’s controversial H-1B visa fee hike, ruling it an unauthorized tax, but Indian founders still face year-long waits for visas.

Asia may still be the right home for certain businesses. Salovaara points to Alterno, a Singapore-incorporated Vietnamese startup that developed low-cost renewable energy storage using sand-based thermal batteries. “If you’re building in Vietnam, it’s obviously going to be a lot more cost-effective compared to the U.S.,” he said. Antler’s guiding philosophy is that people can innovate from anywhere, and the firm recently expanded its focus to China-outbound, Japanese, and South Korean founders.

Caveats

The article’s scope is limited to Fortune’s reporting, and trends may vary by country, sector, and company. Data points refer to cited years and may not reflect current conditions. Visa policy outcomes and IPO performance are subject to regulatory changes not fully captured in a single piece. Some businesses, especially those in infrastructure and energy, may find better opportunities and lower costs in Southeast Asia than in Silicon Valley.

FAQs

Why are Asia-based founders moving to the US for startups?

The article describes founders moving to access the U.S.'s large customer base, abundant capital, and vibrant founder community. Examples include Yoevan Khemlani of Interfaze relocating from Singapore to San Francisco after realizing his customers were already in the U.S. Antler has helped more than 30 Asian founding teams relocate to the U.S. since 2025, citing the pull of customers, talent, and capital all found in abundance there.

How does venture funding in Asia compare with the US recently?

The U.S. captured roughly 68% of all startup funding in 2023 and about 80% in Q1 2026, while Asia's share dropped to around 9.6% in Q1 2026. Southeast Asia venture funding fell almost 80% between 2022 and 2024, from approximately $10.1 billion to $2.2 billion. The region now accounts for roughly 0.5% to 2% of global VC investment.

What role do visa policies play in cross-border startup mobility?

Visa hurdles, such as the H-1B fee hike from $5,000 to $100,000 (since blocked by a federal court), and year-long waits for Indian citizens, affect relocation timing and feasibility. Geopolitical restrictions around data and AI also influence decisions, as Western firms may be uncomfortable working with startups based in China.

Which Asia-based startups have relocated to Silicon Valley?

Notable examples include Yoevan Khemlani of Interfaze (AI for backend web scraping) moving from Singapore to San Francisco, and Sanjil Jain of Drift (AI platform for robotics engineering) relocating from India. Antler-backed teams have also relocated, and the firm is expanding its focus to China-outbound, Japanese, and South Korean founders.

What challenges do Asia founders face when expanding to the US market?

Founders need to adapt to U.S. investor expectations, which emphasize vision and the problem being solved rather than early revenue and profitability. They also face cultural transitions, visa delays, and the challenge of achieving proper U.S. growth. Additionally, fragmented go-to-market strategies across Southeast Asia make scaling harder compared to the more uniform U.S. market.