For quite a few European startups, the American market represents an ideal target for expansion (or even relocation) due to the presence of a large number of potential customers, a business-friendly environment, loads of experienced and well-funded investors, and other factors. Most companies can generally handle it on their own, but it requires resources to make the move and may take some time to get everything going smoothly. Enter Danish-founded Lemonsqueeze, which sprung up in New York City in 2013 in order to help smooth the path into the American market for these companies.
The first step in entering the American market may be a bit boring and tedious, but is nonetheless quite important. At this initial stage, Lemonsqueeze helps businesses get settled and take care of issues regarding paperwork (such as visas), setting up a bank account, arrange insurance, finding office space, and so forth. Essentially, they will lay out the groundwork in order to enable businesses to just come in and begin operations. At the second stage, Lemonsqueeze brings in the people that businesses need to operate in the United States, recruiting and pre-screening them for clients. Then, having set-up the team, they proceed to the management stage, which involves crafting a sales strategy within this new market for the company.
Lemonsqueeze has chosen to operate with a hybrid revenue model. In some cases, they will just take a bit of equity from the companies that they assist. But, in some other cases, they will take a charge a retainer fee, as well as equity. In some cases, they will take all of a retainer, equity, and a commission.
Co-founder and CEO Mik Stroyberg tells me that they were able to get the business off and running without needing to turn to external investors. They have helped 30 clients up to this point, with 12 currently active and 4 joining during this quarter. The service initially helped businesses based out of Scandinavia, but they have since expanded to assist companies from Iceland, the United Kingdom. and Spain.
In addition to the main business, they run an incubator called The Brass Factory. Stroyberg says that Lemonsqueeze is slowly turning into an incubator, as well, and that they want to help businesses enter the American market and rapidly scale.