This week we talked to Katja Kotala, Community and Program Manager at the Nordic Innovation House (NIH) in Palo Alto. NIH, or “The House” as they call themselves, is the headquarters for Nordic Startups in the Valley. They help Nordic companies hit the ground running when they get in the US, and offer a community where you will find peers, partners, investors, and service providers. The NIH is a unique collaboration between the five Nordic Countries, supported by Nordic Innovation and the Nordic Council of Ministers.
Katja, just to get to know you a bit better, who are you and what brought you to Silicon Valley?
I moved to the US five years ago, brought over from Finland by my husband’s work. I started to work for NIH in 2016. Today I am the Community Manager and Program Manager, which includes managing our annual Healthcare program. I am also in charge of our communication and our events. Above all, I am here to help our members.
How does NIH help Nordic Companies when they touch ground in Silicon Valley?
Due to our governmental ties, we strive to help all Nordic companies that come here. Support from NIH includes our team at NIH and our national organizations, (Vinnova, Innovation Norway, Business Finland, Innovation Center Iceland, Innovation Center Denmark). In total, about 15 people work at NIH. We help startups and enterprises make connections and support them with business strategies, and how to operate in the Valley. The national teams at NIH have a long experience from working here and have great networks in the area.
NIH further organizes different accelerator programs and workshops. In addition, we offer the possibility to get a virtual or actual office at the House. In this way you get access to peer support as well and connections through them.
One of the paid services you provide is the possibility to get a virtual office at NIH. Why should you get a virtual office at NIH or elsewhere?
With a virtual office at NIH, you get an address in Silicon Valley, which is good for your business card, webpage, and for your customer relations. You become a part of our community which includes great support from NIH. The companies which sign up for our virtual offices are in general in the stage where they look for customers, partners or suppliers in the US. With a physical address in the US, you get more credibility. We have also seen examples of when having a virtual office can help when you apply for a visa. A physical address shows that you are serious in your efforts of launching a business in the US. If you want to work from the NIH you can get a desk within our facilities. Today there are about 150 companies which have a virtual office at NIH. In addition, NIH offers about 20 desks that can be rented out.
When you have a Virtual office at NIH or elsewhere in the US, what is the most important thing to think about? Are there any tax implications if you get one?
A Virtual office has no legal status in itself. Once you start to do business here you need to establish some kind of legal entity, for example a corporation or an LLC. If you set up a company in the US, you will need to file your taxes here, even if your company hasn’t actually started running its business yet. If you don’t, you risk fines of thousands of dollars, which we have seen happen. The virtual office can serve as the address for your US company and we do scan and electronically forward your mail to you.
Does NIH give any legal advice on standard matters like visa, tax planning, employment law etc? Do your members share their experience in any formalized/structured way?
NIH does not give any legal advice. We bring in lawyers specialized in different questions. We refer our members to uslawfornordics.com and we shortlist lawyers we have heard good about. The members of NIH share their experience with each other, especially when they come from the same country, and the same legal structure.
What are the most common legal questions that your members tend to ask?
We get a lot of visa questions, in which case we advise the member to contact an immigration lawyer. We also get a lot of questions regarding patent, contract writing, recruiting and how to establish a company in the US. Then we get a lot of questions regarding the US healthcare insurance system. Some information you can find online, but in most cases, you will need a lawyer.
Do you, at NIH, collaborate with any legal or financial advisors? Is there anything, in particular, you should think about when hiring a legal or financial advisor?
We sometimes invite lawyers to give lectures, but we cannot recommend anyone in particular since we need to stay neutral. Before you talk to a lawyer you should ask around in your network for recommendations. Once you have initiated a discussion, make sure to ask about pricing. You should be aware of that there is often an initial startup discount, which might quickly go up to a higher price level. Often it is wise to ask for help from the beginning and not try to do it yourself. To go back and correct what went wrong can be very expensive, if at all possible.
How do you collaborate with the other Nordic startup communities around here, when giving advice on formalities and practicalities?
NIH has a unique position in relation to the other Nordic Communities in the Valley. We collaborate when we can, we co-host events etc. But compared to other organizations we are mainly an office space and a community. We do not provide any business-related services. Regarding the more advanced accelerator programs going on in the Valley (like Y-Combinator, Alchemist etc.), we stay updated so we can recommend the best fit for the companies asking for our advice.
When you moved here from Finland, what were the top three law-related challenges you experienced?
The visa is always tricky, and we hired an immigration lawyer to help us. Likewise, we asked for help to file our taxes the first years. I was also struggling a bit to find the accurate information when I launched my business as an independent contractor.
Which are your main learnings so far from being in Silicon Valley? What do find inspiring, excellent, and the most surprising?
One thing is the importance of network. Networking is a true occupation here and being Nordic it can be challenging initially to get out and talk to people. Here it is super easy to build your network. I am amazed by the openness and willingness of people to learn about different things and share their connections so easily. You can make friends in the elevator. Here I make new friends in my apartment complex quite often. When I lived in Finland I hardly knew who my neighbors were. You have to be ready to pitch your message anywhere you go and you never know who you are going to meet. Anybody you talk to anywhere here can be a genius.
