This is probably a somewhat cynical take, but Stripe Atlas' US only offering is a big contributor to international startup brain drain which is costing local economies significantly. When countries (such as within the EU, India or South America) invest so much in the education and development of young entrepreneurs, only for them to leave to the US for the allure of quick investment, all of their potential future value leaves with them. I understand there is a lot for these countries to do to improve investment conditions for high risk startups, but how can poorer South American countries (like those in the Stripe promo video linked) compete with the US in terms of the availability of capital? This is not solely Stripes fault, though in my opinion by promoting Delaware parent companies for international founders they contribute to the hindrance of the local tech economies of these countries.
I'd like to reiterate that this is a relatively uncharitable take, and would welcome alternate perspectives on this issue.
While some Atlas users are internationally mobile, the dominant use case for Delaware entities is to give you a convenient box the system knows how to interface with while you live and operate your business wherever you live and operate your business. This is true for foreign and U.S.-based owners of Delaware entities.
One of my favorite Atlas users, Meitre in South America, has this tagline on their site: "Proudly born in Uruguay. Made with love in California" Much of their business is in South America; they went on (after incorporation) to through YC, raised from A16Z, etc. I think their experience is a userful counter to the standard narrative about brain drains, because that business is very thoroughly South American and also a first-class participant in the SV ecosystem.
Anecdotally speaking, a lot of the Atlas companies I'm aware of which raised money raised it either primarily locally, a mix of local and Silicon Valley, or "extremely widely distributed."
Thanks for the response, it seems my initial take was indeed unbalanced and hadn't factored in the potential of geographically distributed raises which benefit the founders local territories whilst bringing the benefits of significant US capital.
While availability of capital is (in my experience) critical in the decision for South American startups to create a Delaware C Corp, another overlooked piece is the amount of bureaucratic hoops you’re forced to jump through elsewhere. Founders (again, my anecdotal experience) want to focus on building their business. The US system is far from perfect but it’s the most streamlined & has a clear path laid out for scaling. The US system is onerous at best but it’s one of the best relative to others.
Ultimately, if you make things harder for entrepreneurs, they will find an alternative. Atlas makes things easy & actively looks for more way to remove obstacles. It’s a no-brainer for people wanting to focus on building and not tax entity structure.
I'd like to reiterate that this is a relatively uncharitable take, and would welcome alternate perspectives on this issue.