How UK Tech Firms Hit $1M in the US

Revolut. Darktrace. Peak. These UK tech companies didn’t just enter the US, they scaled fast. But not every UK company makes it across the Atlantic. Many UK founders still believe the US market is too competitive, too expensive, or too complex to break into.

Fresh & Easy, Topshop, Purplebricks. Haven’t heard those names in a while? Or ever? They all tried to expand to the US and failed. Some misread the market, others burned through cash too fast.

Think the US is out of reach? Think again. The reality is, UK tech firms that execute the right international expansion strategy hit $1M in revenue faster than in their home market. But it takes the right approach, market positioning, and revenue model to make it work.

Want in? Let’s break down the exact path to building a $1M revenue stream in the US without costly mistakes.

Why the US Market Is a $1M+ Opportunity for UK Tech Firms

The US is the biggest, fastest-moving tech market in the world. It has the largest enterprise buyers, the most venture capital, and the highest-growth startups. For UK tech firms, it is the fastest path to serious scale. But only with the right strategy.

The Scale of the US Tech Economy

The US tech industry offers access to a $2 trillion digital economy. With tech hubs across Silicon Valley, New York, Austin, and Miami, the US is home to half of the world’s top 10 largest tech companies, over $300 billion in annual venture capital investment, and an extensive enterprise customer base actively seeking innovative solutions.

For UK Scale-ups, this means:

A Much Larger Addressable Market: The US economy is 5x the size of the UK’s, with nearly 10x the VC funding available for high-growth companies.
Bigger Enterprise Deals: US corporations are more accustomed to spending on tech solutions at scale, creating opportunities for large contracts and rapid revenue growth.
A Thriving Innovation Ecosystem: US investors, accelerators, and corporate innovation arms actively seek international tech companies to fill gaps in their markets.

Related reading: For an in-depth look at the different expansion regions, check out our US Expansion Regional Spotlight.

Why UK Scale-Ups Are Well-Positioned for US Growth

While the US presents huge opportunities, breaking into the market requires a competitive edge. The good news? UK tech companies have a strong foundation for success.

Key Advantages include:

Strong Reputation in Fintech, AI, and Deep Tech: UK tech firms, particularly in fintech, cybersecurity, AI, and SaaS, are highly regarded in the US for their innovation and compliance expertise.
Cultural and Business Alignment: Despite operational differences, UK companies adapt more easily to US business culture than firms from non-English-speaking regions.
Existing US Traction: Many UK firms already serve US customers remotely, making expansion a logical next step.
Proven UK-to-US Success Stories: Revolut, Darktrace, and Peak paved the way, proving that UK scale-ups can thrive in the US market.

Need help with your US expansion plan? The ConnectaVerse provides expert guidance on incorporation, partnerships, and hiring. Get a free consultation today!

Where to Start: Assessing Your Readiness for US Expansion

Before choosing a market entry strategy, UK tech firms need to assess whether they are ready for US expansion. Key factors to evaluate include:

Market Demand: Is there proven demand for your product or service in the US, and do you have early traction with American customers?
Funding and Runway: Expansion requires significant investment. Do you have the financial resources to sustain US operations before profitability?
Regulatory Compliance: Are you prepared for US tax, employment, and entity laws?
Operational Capacity: Can your team handle US expansion while maintaining UK operations, or do you need local hires?

A clear expansion plan reduces risk and ensures your business is positioned to scale in the US.

Market Entry Strategies: The Right Approach for UK Tech Expansion

Breaking into the US market requires more than just demand. How you enter determines your speed, costs, and long-term growth potential. The right market entry strategy depends on your industry, funding stage, and risk appetite.

Choosing the Best Market Entry Model

The three main entry models for UK tech firms expanding to the US are:

Setting up a Subsidiary: A UK company registers a US entity, typically choosing between an LLC vs C-Corp structure. An LLC offers flexibility, while a C-Corp is better suited for raising venture capital.
Partnering with a US Company: Strategic alliances can provide market access without full operational risk.
Acquiring a US Business: A faster route to market entry, but requires significant capital and legal due diligence.

For those planning long-term US expansion, incorporating in Delaware is the default choice for most tech companies due to its business-friendly laws and strong investor preference.

Building a US Presence Without a Local Entity

Some UK companies hesitate to set up a US entity immediately. If you need boots on the ground without full incorporation, these options help bridge the gap:

Employer of Record (EoR): Allows hiring US employees under a third-party provider, avoiding immediate entity setup.
Professional Employer Organisation (PEO): Similar to an EoR but with shared employment responsibility.
Strategic Partnerships: Working with established US firms can unlock distribution channels and local credibility.

Not every business model requires immediate US entity formation. The right approach depends on hiring needs, revenue goals, and long-term investment plans.

Pricing & Positioning: How to Win US Clients Early

The US market expects different pricing models than the UK. What works in London may fall flat in New York.

Enterprise SaaS deals take longer but are more lucrative. US corporations prefer multi-year contracts with tiered pricing.
Subscription-based models should reflect US purchasing habits. Monthly payments are standard, but annual discounts improve retention.
Freemium strategies work well for B2B SaaS, but free trials need to convert fast; long, unpaid usage cycles kill revenue growth.

Winning early clients is not just about pricing. Positioning matters. Many UK firms struggle with messaging that resonates in the US. Competitor research, clear differentiation, and localised marketing are critical from day one.

Navigating US Legal and Regulatory Requirements

Every market entry strategy must consider compliance from the start. Expanding without understanding US tax and legal obligations leads to unnecessary risks.

Tax Nexus and Compliance: If you generate revenue in the US, you may trigger nexus and be required to collect and remit sales tax in certain states.
Visa and Hiring Rules: Hiring UK talent in the US? Work visas are complex, and sponsorship can be costly.
Data Protection and Privacy Laws: The US lacks a single GDPR equivalent, so compliance varies by state.

Legal requirements depend on your business model, entity structure, and operational footprint. Missteps here can delay or derail US expansion plans.

Want to avoid costly mistakes? Read our article on UK-to-US Expansion Mistakes to Avoid.

The ConnectaVerse connects you with local experts to accelerate growth. Get a free consultation today.

Revenue Models: The Fastest Paths to $1M in US Sales

The right revenue model can accelerate US growth or slow it down. US customers expect flexible pricing, clear ROI, and scalable solutions. Here’s how the most successful UK tech companies build revenue fast.

The Subscription Model: Scaling a SaaS Business

For SaaS companies, subscription-based pricing is the gold standard in the US. The key to success? Scalability and commitment.

Monthly vs. Annual Billing: US businesses prefer monthly subscriptions, but annual plans with discounts improve retention.
Per-seat vs. Usage-based Pricing: Many US enterprises expect per-user pricing, while startups often favour usage-based models.
Freemium vs. Free Trial: Free trials should convert fast. In the US, 14 days is standard; anything longer risks churn without revenue.

UK tech companies often underprice in the US. The right positioning can support premium pricing while still feeling competitive.

Enterprise Licensing: Selling to Large US Companies

Enterprise licensing deals offer a high-revenue, high-commitment pathway to scaling in the US. These agreements allow corporations to purchase software, AI models, or platforms under multi-year contracts.

Bespoke Pricing: Enterprise clients expect custom contracts with tiered pricing based on volume and support.
Procurement Challenges: US corporations have complex approval processes. Speeding up legal and security approvals can unlock deals faster.
Land-and-Expand Strategy: Many successful UK SaaS firms start with a pilot contract before expanding into full enterprise licensing.

This model requires longer sales cycles but offers higher deal value and stability. Positioning your SaaS or AI platform as a must-have, not a nice-to-have, is key.

Fintech & Payments: How to Monetise Financial Services

For fintech startups, US expansion is about compliance, partnerships, and transaction volume. The biggest mistake UK firms make is assuming their UK financial model will translate directly to the US.

Interchange Fees & Processing Revenue: In the US, fintechs rely on transaction-based fees, unlike in the UK, where banking revenue is often subscription-based.
Banking-as-a-Service (BaaS) Partnerships: Working with a US sponsor bank can streamline compliance and allow fintechs to operate faster.
Regulatory Hurdles: The US lacks a single financial regulator. UK firms must navigate state and federal laws for lending, payments, and digital wallets.

Companies like Revolut grew in the US by adapting their revenue model to local banking habits. Fintech firms that integrate with US payment rails and embed financial products are best positioned to scale.

IT Services & Consulting: Winning US Clients Remotely

UK-based IT consultancies and professional services firms can break $1M in revenue fast without setting up a physical US office. The key is differentiation and trust.

Project-based vs. Retainer Models: Retainers provide predictable revenue, but US clients often prefer project-based pricing at first.
Onshore vs. Offshore Delivery: Positioning UK-based teams as a high-quality but cost-efficient alternative to US firms can be a strong value proposition.
Selling Expertise, Not Just Execution: The most successful UK consultancies position themselves as strategic partners, not just service providers.

For many UK firms, the US outsourcing culture is a major advantage. Winning early US contracts can create referrals and open doors to long-term retainer work.

Case Studies: UK Tech Companies Thriving in the US

Expanding to the US is a high-reward move, but success depends on execution. Some UK tech firms have scaled rapidly by adapting to local expectations, securing enterprise clients, and navigating regulatory hurdles. Here’s how three companies made it work:

Revolut: Scaling a Fintech Business in the US

Founded in 2015, Revolut quickly became a global fintech leader, offering services from currency exchange to crypto trading. Seeing the US as a key growth market, it expanded in 2020 but faced regulatory hurdles, market adaptation challenges, and stiff competition.

Strategic Moves:

Product Adaptation: Adjusted features to match US consumer habits, ensuring better adoption.
Regulatory Navigation: Initially operated under e-money licences but is now pursuing a US banking licence to strengthen its market position.
Leadership Investment: Hired experienced US executives to drive growth and build brand presence.

Outcomes:

Revolut’s strategic pivots have helped it gain traction despite a crowded fintech space. By refining its offerings and tackling compliance head-on, it continues to expand its US presence.

Key Takeaways:

Regulatory Challenges Slow Expansion: Securing licences early prevents delays.
Financial Services Require Local Adaptation: The US market operates differently from the UK.
Leadership Matters: US-based decision-makers accelerate growth.

Hedgehog Lab: Expansion via Localised Marketing & Sales

Hedgehog Lab, a UK digital consultancy, expanded into the US by focusing on localised marketing and strategic partnerships. Instead of applying a one-size-fits-all approach, it adapted to the US business landscape to gain traction.

Strategic Moves:

Cultural Adaptation: Adjusted its messaging and sales approach to align with US client expectations.
Local Partnerships: Collaborated with US-based firms to build trust and expand its network.

Outcomes:

By tailoring its approach and leveraging local partnerships, Hedgehog Lab successfully secured US clients and established a growing presence.

Key Takeaways:

US Clients Expect Tailored Messaging: What works in the UK may not resonate in the US.
Local Partnerships Build Credibility: Working with US firms eases market entry.
Cultural Alignment Drives Sales: Understanding US business norms improves conversion rates.

Peak: Entering the US Market with AI Solutions

AI firm Peak scaled into the US by targeting enterprise clients and positioning itself as a high-value AI solutions provider. Rather than focusing on mass adoption, it secured strategic partnerships with major US brands.

Strategic Moves:

Enterprise Targeting: Won key US clients like Nike and KFC, proving market demand.
Localisation: Adapted its AI solutions to fit US business challenges.
Exit Strategy: Demonstrated scalability, leading to an acquisition by UiPath.

Outcomes:

By focusing on high-value clients and proving its impact, Peak secured long-term growth and a successful exit in the US.

Key Takeaways:

Enterprise Clients Drive Long-term Success: Large US contracts create stability.
US Businesses Expect Tailored Solutions: AI and SaaS firms must localise.
Acquisition is a Viable Exit Strategy: Proving product-market fit attracts buyers.

Lessons from Success and Failure

While companies like Revolut, Hedgehog Lab, and Peak successfully scaled in the US, others struggled. Fresh & Easy, Topshop, and Purplebricks misread US consumer behaviour, underestimated competition, or expanded too quickly without a solid market fit. The difference? Companies that succeeded localised their approach, built strategic partnerships, and adapted to US business culture, while those that failed relied too heavily on their UK models.

Need help localising your approach? Get in touch with the ConnectaVerse for your free consultation today.

Overcoming Challenges: Common Pitfalls and Solutions

Expanding into the US is a major opportunity, but it comes with challenges. Tough competition, hiring complexities, and managing US sales remotely can slow growth if not addressed early. Here’s how UK tech companies can navigate these pitfalls and scale successfully.

Competition & Market Saturation: How to Stand Out

The US tech sector is crowded and highly competitive, making differentiation essential. Many UK firms struggle because they fail to localise their messaging, pricing, or go-to-market strategy.

How to Stand Out:

Nail Your Positioning: UK firms often underplay their unique strengths, such as expertise in AI, fintech, or cybersecurity.
Find a Niche: Competing head-on with US giants is tough. Targeting underserved segments or specific verticals helps gain traction.
Leverage Social Proof: US buyers trust case studies, client logos, and testimonials. Show proof of impact to build credibility fast.

Talent & Hiring: Do You Need a US-Based Team?

Hiring in the US can be a costly and complex process, with different employment laws across states. A full US-based team isn’t always necessary at first, but local talent can accelerate growth.

Key Considerations:

Employer of Record (EoR) Services: If setting up a US entity isn't feasible, an EoR can handle payroll, benefits, and compliance without needing a local entity.
Hybrid Hiring Model: Keep core leadership in the UK while hiring US-based sales, customer success, or marketing teams to drive local engagement.
Compensation Differences: UK companies often underestimate US salary expectations, benefits, and tax implications when hiring American employees.

Managing US Sales & Growth from the UK

Many UK tech firms start by selling into the US remotely, but time zones, buyer expectations, and sales cycles can create friction.

How to Overcome Remote Sales Challenges:

US-friendly Sales Hours: Ensure a team member is available during US business hours to handle leads and customer support.
Localised Sales Approach: American buyers expect a more direct, results-driven sales process compared to the UK’s consultative approach.
Expanding with the Right Support: If scaling demand outpaces internal resources, consider outsourcing payroll and HR functions to avoid administrative burden.

The bottom line: A well-planned US expansion strategy avoids common pitfalls. Positioning, hiring flexibility, and adapting to US sales dynamics help UK firms gain traction without unnecessary risks.

Your Next Steps for UK-to-US Expansion Success

Expanding into the US is one of the biggest growth moves a UK tech company can make, and the right strategy makes all the difference. Your success depends on it. The companies that reach $1M fastest adapt their approach, localise effectively, and plan for long-term growth.

Whether setting up a subsidiary, forming partnerships, or using an EoR, your market entry strategy will determine how quickly and efficiently you scale. Revenue models must be tailored to US buyer expectations, from enterprise licensing to subscription-based pricing. Avoiding common pitfalls like market saturation, hiring challenges, and inefficient remote sales is key to staying competitive.

Successful UK companies like Revolut, Hedgehog Lab, and Peak have proven that the right international expansion strategy works. They localised their messaging, built trust with US clients, and secured high-value contracts to drive long-term growth.

Scaling to $1M in the US isn’t just about opportunity, but execution. A strategic approach avoids costly mistakes and accelerates growth.