1. Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
Who?
European Expansion for Silicon Valley Startups
Thoughts on how to think about it
Martin Reiter
Head of International, Airbnb (July 2011-13)
VP International, Groupon (2010/11)
Stanford Engineering School
European Entrepreneurship and Innovation
February 3 2014

2. Vienna...

3. Why Europe excites…
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
How do you know what you like without knowing what there is?

4. Why Europe matters…
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
Who was worth more?
Can you succeed in
a global market
when you win only
in your home
country?
The world’s second
largest internet
consumer market?
The third largest
metropolitan area in
Europa?
What does Istanbul
mean to you?

5. my career… you never know where you end up
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
Fear
Speed
Others are different –
and it is OK
before
Curiosity
now
Toolbox
Design &
Culture
Physical Good
Operations

6. building blocks for entering the European market
Why
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
When
&
Where
What
How

7. why… three reasons to expand
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
Requirement
Opportunity
Competition

8. why…because of
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
Winner
takes it all
Home is
defensible
Local winner
can take all

9. why… there is more
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
Founder
Personal
Growth
Team
diversity
Product

10. when to enter Europe…
Product
You are Instagram
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
Great idea
…and pretty easy
to execute
Clone threat
Others are there,
but your product is
better
too early
< 8 M Series A
Take liquidity risk if
you must
too late
Brand-driven
You really want to
be first mover
Clone Wars
Others are as good
and first mover –
but you can raise
easier
rule of thumb: 1,5 yrs OPEX burn plus 0,5 $M Marketing = 1,5 $M entry cost per European market

11. Your
Neighbour!
Rocket
Internet
DST!!
where…
Rakuten
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
> 1 bn
Alibaba
Peixe
Urbano
Easier access and
still very big
The nicest
opportunity…
somehow

12. where ... Europe at a glimpse
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
Skype, Spotify,
Klarna
UK –
convenience is
expensive
DE –
Berlin as startup
hub
CEE –
Massive consumer
catch-up
ES –
crisis and
opportunities
IT –
Strong retail
consumer
market
F –
Vente Privee and
LVMH

13. what works and what doesn’t – lessons from
bringing startups to Europe and around the globe
Same Org works
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
Canada. Maybe.
Culture works.
Somehow
Europe
Russia/Brazil
China
Japan
easy
Tech Product works
Australia
Europe
Brazil/Russia
Japan/China
Marketing
Can be done centrally.
At prohibitive cost?
Your biggest cash drain.
Hire accordingly.
Operations
Watch legal:
China, SEA, Russia
Watch shipping:
Russia
Payments:
LatAm, Germany
hard

14. Concrete steps to developing a European entry strategy
1 Align the rationale
Why do you do it. Do investors, board and leadership agree?
2 Scope the adventure
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
3 Find leadership
Product leader. Business leader. Think about what it took to make your market successful.
4 Create playbook
5 Build and Hire
6 Operate
7 Evolve
Burn & Liquidity. Revenue & Expected upside. Markets, Headcount, Org. Good time to get help.
Vision, Goals, Location, Processes, KPIs, Budget, Roadmap, Marketing, Communication
Hiring manager hires. Recruiting is not HR. No stupid mistakes. Tax. Finance. Interaction. Office.
How can you feel comfortable with what others do far away? Supporting or enduring? Team. Data. Relationship.
If you don’t change your org once a year, I would be concerned. Correct mistakes and adjust to scale and growth.

15. Some lessons learned from Groupon, Airbnb
1 Hire well. The founder built in the U.S. – which talent can realistically replicate this in a more complex (EU) market?
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
2 Local Talent rules. The GM needs to be fluent in the language, but not necessarily a local. Talent is more important.
3 Right organization. Make people 100% accountable – Win or Fail. Ensure proximity to the market and experience.
4 Don’t underestimate marketing. You can theoretically do marketing from the U.S. – but great deals are negotiated in Europe.
5 Decide upon tech resourcing. Ring fence or pool resources – International product manager yes/no…
6 Founder must build an independent advisor network in Europe. How can you feel comfortable with what others
do far away? Supporting or enduring? Team. Data. Relationship.

16. How to recruit talent in Europe
Why do I care
Why do others care?
How did I get there
First principal thoughts
Why?
When?
Where?
What?
How?
Right role
GM or Sales Manager?
Right hook
Pitch and
Compensation
(GM – 100-150k USD
plus same to double in
equity. VP – more.)
4 steps to get best
talent
Right search
LinkedIn for all relevant
companies.
Right effort
Meet people via Investor
network and LinkedIn
search. Ask for referrals,
leads. Be in Europe for a
week each

17. Thank you
Martin Reiter
Vienna
Martin Reiter
Email: martinenjoyslife@gmail.com
Linkedin:
http://www.linkedin.com/pub/
martin-reiter/30/ba3/64a