Perplexity CEO: The US is the Best Place to Form a Startup

Perplexity CEO: The US is the Best Place to Form a Startup

Aravind Srinivas, CEO of Perplexity, says the US is still the most effective region for startups as it encourages people to pursue ambitious goals and offers a strong access to capital.

Discussing the country’s prospects on The Joe Rogan Experience, Aravind expressed his beliefs on why the US is distinct from other countries, citing how entrepreneurs are incentivised to take risks and think independently.

“I always thought America's the only country where you can come here and have an idea, and people listen to you and encourage you to go pursue it,” Aravind said. “The risk-seeking culture is just incredible.”

Balanced competition across US sectors

Aravind co-founded Perplexity in 2022 and first arrived in the US in 2017 after graduating from the Indian Institute of Technology Madras.

During his first few years in the country, he said he was surprised at how easily the US system allowed newcomers to build enterprises capable of taking on industry giants.

Discussing the common culture of deferring to authority in countries outside of the US, Aravind says even if someone has an idea that challenges what the US believes, it “still encourages you to go pursue it”.

He went on to say that when he first set foot in the US, Google was the “number one company that everybody wanted to work in.” but since the growth of the tech sector and how the US provides disruptors with the space for ambitious ideas, the US lets anyone start a new idea that could challenge the entire industry.

When asked by Joe whether that same attitude exists elsewhere in the world, Aravind pushed back and said “it’s a simplification to say it’s not anywhere else,” before adding that it wasn’t as encouraged as it was in the US.

He added that for him, the American dream is about being seen as a serious contender in your industry and for that reason alone, is “why America’s still at the top”.

Impending challengers for new entrepreneurs

Aravind went on to discuss his time at university, saying it was a great place for receiving honest feedback without being discouraged.

“People actually give you very honest feedback about things, but they don't stop you from working on anything. That's fantastic because that's very fresh, it's very liberating,” he said.

When asked for his advice on avoiding business pitfalls, Aravind said: “Anytime I try to act like I'm trying to avoid failure and being on the defence, I remind myself, that’s the stupidest thing to do.”

He added that his philosophy in business was to fully commit and avoid hedging, and that entrepreneurs should “be on the offense all the time”.

Despite Aravind’s optimism on starting a new company in the US, there are potential challenges for an outsider founding a startup within the country.

In 2025, the Trump administration introduced a US$100,000 fee – which was ruled unlawful last month – for companies sponsoring new H-1B visas, an initiative that helped talent get started in the US.

This change has created uncertainty across all US industries, with many suggesting that because of the fee, smaller startups could subsequently struggle to compete with larger firms.