Why Some Global Tech Startups Are Offshoring to Delaware

When global companies think about incorporating offshore, they typically look to places such as Bermuda, Ireland, or the Netherlands. Kenyan entrepreneur Trevor Kimenye decided to go with Delaware.

Kimenye co-founded his digital marketing startup Ongair Inc. in Nairobi two years ago. He said companies around the world use Ongair’s tools to help them communicate with customers through WhatsApp and other messaging apps. Ongair has the look and feel of Silicon Valley software, but whenever it tried to collect payment from companies using its services, there would be an inevitable moment of confusion. “Everyone thought we were from the Valley, and now we’re, like, ‘OK, send this money to a Kenyan bank account,’” Kimenye said. “They were, like: ‘Are you Nigerian princes?’”