Information Technology (IT)
IT Industry Market USA
The United States’ IT market, the world’s largest single internal consumer market, accounts for 25% of IT spending worldwide. Despite an overall sluggish economic recovery, the US remains to be the largest IT market worldwide with an estimated spending of $529.3bn in 2011 [1]. After postponed short-term spending in consulting and software development since the recession in 2009, governmental as well as business demand derivers are seeking to reap the benefits and cost savings from innovative IT solutions. Key growth drivers of the industry are IT segments such as Cloud Computing, Mobile Applications and IT services [2].
[1] “US Information Technology Report, Q3 2011,” Business Monitor International, Ltd.
[2] Canalys
Start-up Companies in the U.S.
Legal Considerations for Start-ups
International companies appreciate the US market for its strong intellectual property right laws and enforcement. However, in response to the fast-paced and every-changing nature of the IT industry, the Obama administration signed the America Invents Act into law in September 2011. This major change to the American patent system assimilates the US legal framework to the European system and makes it easier for innovative entrepreneurs to rightfully monetize their ideas. Of the more than 100,000 software and IT companies in the US, 99% are small- and medium-sized enterprises that mostly exist as corporations.
Financing your Start-up
In the US, IT start-ups mainly partner with venture capitalists or “angel investors” who provide the necessary financial backing. Venture capitalists will accept entrepreneurial projects based on their potential to revolutionize existing industries or give birth to new ones. Located in close vicinity to (and well- connected with) globally renowned tech clusters such as the Silicon Valley, CA and Seattle, WA, the GACC Office of the Western United States offers ideal opportunities for market newcomers and investors to meet like-minded business partners.
