Australian HR tech startup Enboarder is expanding to the US and has chosen Austin as its US base. 

Enboarder offers an onboarding solution that lets enterprises communicate via text message with new hires as soon as they sign their contract. The HR tech startup founded in 2015 has raised funding from New York-based venture capital firm Greycroft as part of a $5 Mn funding round, which also had participation from Our Innovation Fund.

Enboarder founder Brent Pearson told The Australian Financial Review that the company had chosen Austin to be its US base as the competition for talent was less intense and the city was not as expensive as Silicon Valley.

The move comes as the US is becoming Enboarder’s fastest growing market. About 50 per cent of its 150 customers come from Australia, with the US being its second-biggest market with 35 per cent. But it is expected to have a significant share in the coming year. While the development and product headquarters will stay in Australia, but sales and marketing HQ could move to the US.

Enboarder’s clients include Westpac, Deloitte, HSBC, Samsung, Canva, Walmart, McDonalds and The Huffington Post among 150 others.

With the move to Austin, Enboarder joins the list of startups that are choosing smaller cities over the Silicon Valley on account of lesser competition for talent.