Why Samsung and Tesla Are Betting Big on Texas for Global Expansion?

Interview with Marcos Cervantes

CEO of Q-Branch, a Global Accelerator in Austin, Texas

Q1. Can you share some information about the business environment in Texas, both domestically and internationally?

It is a widely held belief that a company's success is solely determined by the quality of its products and services. However, this is not entirely true. In reality, a company's success relies on a combination of factors beyond just creating goods and services. Companies must have effective marketing strategies, sound business models, appropriate market positioning, strong customer relationships, and efficient financial management to achieve business success. 

Texas is a rapidly evolving state, making it ideal for businesses of all kinds, both domestic and international. The Austin area has gained a reputation for its creative business ecosystem, where businesses have thrived. The region has become a hub of innovation, with universities in Texas providing cutting-edge technologies that have formed the foundation of the venture capital community. 

This makes it even more attractive for businesses looking to transfer and adopt technology and conduct business. Like how Silicon Valley grew into a diverse technology and business hub, the Austin area has become a prime location for businesses that value creativity and innovation. This region provides an exceptional business environment for companies looking to expand and establish themselves in the market. Texas businesses can take advantage of the state's pro-business policies, low taxes, and abundant resources, making it an ideal location for various industries. 

Global companies such as Samsung Electronics' semiconductor fab and Tesla's Gigafactory have already established themselves in the area, proving that Texas is an excellent location for businesses looking to expand their operations across the United States and beyond. Texas's business-friendly environment and diverse and highly skilled workforce make it a top choice for businesses seeking to grow and thrive.

Q2. Can you tell me how Texas's industrial infrastructure contributes to the global ecosystem?

Texas is undoubtedly one of the most attractive destinations for businesses looking to grow and succeed. With cities like Austin, Dallas, Houston, and San Antonio, the state offers a diverse range of industries, from software technology to real estate and energy tech. 

The state's business-friendly policies have made Texas a hub for startups and large corporations, fostering a sense of community within the business world. Samsung's decision to build a factory here is a testament to the state's potential, and we're confident that Texas will continue to be a vital player in the global business ecosystem.

Q3. Can you explain how you assist startups in bringing their products to market?

At Q-Branch, we are experts in market entry and know that success requires more than just selling your products or services. It takes a deep understanding of the culture and business environment of the new market. We offer comprehensive support to entrepreneurs looking to settle into a new business market, ensuring they have a well-planned strategy considering local processes, tax systems, and regulations.

Our organized system helps entrepreneurs in Texas navigate the business ecosystem with ease. We work with them to create a strategy and plan for execution, taking into account their vision, available resources, communication channels, and team organization. Our approach ensures they can confidently establish their programs and strategies to achieve their goals.

Even if a company is entering a market with a completely different language and cultural business environment, we have the expertise to provide structured support that helps them communicate effectively and establish their presence in the new market. At Q-Branch, we help entrepreneurs succeed in any market they enter.

Q4. Can you provide some advice on how startups can attract investment from local sources?

At Q-Branch, our connections in Texas are unparalleled. Our vast network includes global corporations, venture capitalists, and universities. We take immense pride in supporting every startup's journey, but once we understand their strategy, we only introduce the company to our networks and investors to ensure its success.

Startups that come to our acceleration program have a clear advantage. We focus on securing customers or contracts through our Proof of Concept (PoC) program, which helps them easily penetrate new markets. We understand that new markets have many legal, institutional, and cultural differences, but we have the expertise to navigate them successfully.

Our approach is simple yet effective; we believe in proving your product to the target market through PoC before approaching investors. It's vital to make your presence known in a new market and demonstrate the value of your products and services to the target market before you meet with investors. With Q-Branch, you're in safe hands.

Q5. What are the benefits of PoCs for startups?

At our company, we are confident that the best investors for any startup are its loyal customers. That is why we focus on finding pilot programs with large corporations to showcase our startups' innovative products. When a large corporation likes and believes in a startup's product, their venture department is more likely to invest in it. This strategy helps create a loyal customer base that eventually becomes an investor, which is the ultimate scenario for any startup. Hence, we chose Texas as our base of operation, and we are confident that our startups will succeed with our approach.

Q6. Can you please share your passion for accelerating startups and their impact on the industry? 

I am a former member of the U.S. military, widely recognized as one of the best leadership organizations in the world. With this experience, I see startup CEOs as comparable to soldiers who volunteer to protect our nation. As such, I am deeply committed to working towards the success of startups and will put forth my utmost effort to achieve this goal.

 I am convinced that the success of these companies will contribute to the prosperity of both Korea and the United States. To this end, creating more opportunities for Korean companies to excel is essential. As a leader, I know how critical it is to have strong leadership skills, particularly when entering new cultures and business ecosystems. I am grateful for the opportunity to impart these lessons to entrepreneurs, and I value the lessons I have learned.

I am confident in assisting startups in developing strategies and expanding globally, and I look forward to contributing to their success.

I have learned several things from the interview.

1. Texas is a region with a thriving oil industry and significant capital. Given this, it is worth considering the defense, security, energy, and biotech centers in Houston where NASA and the world-class Anderson Cancer Center are located.
2. Texas is also emerging as the third-largest entrepreneurial ecosystem after Silicon Valley and New York City, with a growing creative culture. SXSW is a significant event for creators, but it is also a global networking event for tech, startups, and investors.
3. It is often said that the United States has 50 different states, each as diverse as a country in terms of industrial infrastructure and economic activity. Each state has its unique culture, regulations, and laws, which makes me wonder if it would be more practical for startups to target one state rather than the entire U.S. market.

Contacts

Marco Cervantes : marc@q-branch.dev 

Youngsoo Lee : youngsoo@q-branch.dev