The risks US startups actually run into
The pitch sounds clean: same code, lower rate. The risk is everything around the code. Three failure modes show up over and over:
- The 4am-standup tax. A 10+ hour gap means every blocker waits a full day. Ask Monday night, answer Tuesday night, ship Wednesday — a two-week feature quietly becomes five.
- The portfolio-vs-production gap. Plenty of cheaper developers can build a demo. Far fewer have run something with real users, real payments, and real edge cases — webhook retries, race conditions, refund flows, data you can't lose.
- The IP and handoff gap. No contract, no clear repo ownership, no docs. The work exists but you can't onboard the next person to it.
For a startup the cost isn't the hourly rate — it's burned runway. A cheaper developer who ships slowly, or leaves code nobody else can read, is the most expensive option on the board.