Thread by @dunkhippo33

Some Wednesday thoughts on geography.

As we come out of the pandemic, I don't even know what "geography" means anymore.

What does it mean to be focused on investing in US companies? What does it mean to be a US company?

Some thoughts >>

1) Even before the pandemic, we did all of our interviews over video conf and most of our companies are located all over the US, Canada, and Southeast Asia.

There are so many founders we've backed whom I've never met in person even to this day!

2) That being said, we've always had a specific mandate to invest in startups in the US, CAN, and SEA.

These days, though, I have no idea where our founders are. During the pandemic, so many ppl have moved and everyone went remote.

3) And this has carried over into our investing as well. We're now seeing companies incorporate in the US but are literally everywhere.

In fact, one of our newest portfolio companies Remotebase was just in the press:

menabytes.com/remotebase-see…

4) And the funny thing is that article mentioned that they are our first Pakistani company. And that's true! But until I read that article, that thought didn't even occur to me...

Why? Because they are incorporated in the US. They have US legal counsel. They serve US customers.

5) One might say this is a funny thing to say, because clearly Remotebase has built their team outside the US. The thing is -- so many of our companies -- even pre-pandemic have hired ppl outside the US...

What does it mean to be an int'l company? Or a US company?

6) I'm not even sure anymore as far as talent and hiring goes. We live in global world -- even more squarely global post-pandemic.

In fact I alluded to this in 2019 as we set up our own int'l partnership @HustleFundVC :

https://twitter.com/dunkhippo33/status/1165295556572282880?s=20

7) But, I do think where you incorporate still matters. This has ramifications on taxes. As well as on which jurisdiction gets to resolve issues should they arise.

8) Incorporation also has implications for cost -- especially expensive legal costs. I've talked about this before here:

https://twitter.com/dunkhippo33/status/1224797508053782529?s=20

9) In fact, we see many "int'l companies" incorporate in the US for all these reasons. More and more, I think VCs who are "focused on the US" will be funding these companies going fwd.

In a podcast, YC said 40% of their batches are now int'l. (Of course, they are all US incorp.)

10) I think teams who have lived in the US and have an understanding of how to do business in the US and have moved elsewhere are best poised to take advantage of this new era we are entering.

11) They will be able to chase after a global mkt from day 1, raise from US investors, and will be able to work with global talent in their companies.

12) I would 100% recommend founders come to Silicon Valley for at a few months at least once in their lives to learn how things work. But then you can take that knowledge and networks with you.

13) In conclusion, post-pandemic, we're going to see a LOT of "hybrid US companies" -- companies that are "US companies" by incorporation but the teams are elsewhere, and they are going to do really well.