![This Talk Is About…
• 500 Startups
– Internet Seed Fund + Accelerator + >100 Intl Startups
• Assessing Global Markets
– (# users, by language/geo) * (avg $ GDP) * (% internet) = avail online spend by lang/geo
• Why You Shouldn’t Go Global
– You’re a Crappy Little Startup with no customers, revenue, or funding
– You Don’t Speak the Language (not very well, anyway)
– Your local market is >50M+ users, and nobody else is going after it
• Why You Should Go Global
– You Live in a Small Country / Startup Ghetto
– There aren’t any local market investors worth a famn.
– There ARE local market investors, but they might be predatory, too revenue-focused, risk-averse
– Your customers and partners are in [X] (where X = California, NYC, London, Beijing, Brazil, etc](https://image.slidesharecdn.com/startuplocalglobal-seoul-nov2012-121128182827-phpapp01/75/startup-local-or-global-do-both-2-2048.jpg?cb=1667670565)
![500 Startups
Mountain View, CA – Founded 2010
• Seed Fund & Startup Accelerator
– $50M under management
– 16 people / 8 investing partners
– 10,000 sq ft / Silicon Valley HQ
– SF, NY, MEX, BRZ, IND (+ more)
– 700 Founders / 200 Mentors
– Focus: Design, Data, Distribution
• 400+ Co’s / 100 Intl / 20+ Countries
– Wildfire (acq GOOG, $350M)
– Twilio
– SendGrid
– TaskRabbit
– MakerBot
– Viki
– 9GAG
– Tapastic / Tapas Media
– [Korean startup TBA]](https://image.slidesharecdn.com/startuplocalglobal-seoul-nov2012-121128182827-phpapp01/75/startup-local-or-global-do-both-4-2048.jpg?cb=1667670565)
![Why Go Global / US / China?
(because California is *awesome*)
• It’s BIG. (US, China are huge markets)
• All the [rich, online] customers are here.
• All the investors are here (Silicon Valley)
– also: Local Investors Screw You / Don’t Invest / Low Val$
• All the platforms & partners are here (Silicon Valley).
– NorCal: Google, Facebook, Twitter, Apple, Android, YouTube
• Because you watch too many action movies and rap videos.
• Because you love California / NYC. (hey, we understand )](https://image.slidesharecdn.com/startuplocalglobal-seoul-nov2012-121128182827-phpapp01/75/startup-local-or-global-do-both-13-2048.jpg?cb=1667670565)
Startup Local or Global? Do BOTH!
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slides for my talk "Startup Local or Global" @ Venture Startup Forum, Seoul, Korea (Nov 2012)
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Startup Local or Global? Do BOTH!
- 1. Startups: Go LOCAL or GLOBAL? (Do BOTH!) @DaveMcClure @500Startups #vsf2012 Venture Startup Festival Seoul, Korea (Nov 2012)
- 2. This Talk Is About… • 500 Startups – Internet Seed Fund + Accelerator + >100 Intl Startups • Assessing Global Markets – (# users, by language/geo) * (avg $ GDP) * (% internet) = avail online spend by lang/geo • Why You Shouldn’t Go Global – You’re a Crappy Little Startup with no customers, revenue, or funding – You Don’t Speak the Language (not very well, anyway) – Your local market is >50M+ users, and nobody else is going after it • Why You Should Go Global – You Live in a Small Country / Startup Ghetto – There aren’t any local market investors worth a famn. – There ARE local market investors, but they might be predatory, too revenue-focused, risk-averse – Your customers and partners are in [X] (where X = California, NYC, London, Beijing, Brazil, etc
- 3. Dave McClure Founding Partner & Sith Lord, 500 Startups 00’s & 10’s: • Investor: Founders Fund, Facebook fbFund, 500 Startups • Companies: Mint.com, SlideShare, Twilio, WildFire, SendGrid • Marketing: PayPal, Simply Hired, Mint.com, O’Reilly 80’s & 90’s: • Entrepreneur: Founder/CEO Aslan Computing (acq’d) • Developer: Windows / SQL DB consultant (Intel, MSFT) • Engineer: Johns Hopkins‘88, BS Eng / Applied Math
- 4. 500 Startups Mountain View, CA – Founded 2010 • Seed Fund & Startup Accelerator – $50M under management – 16 people / 8 investing partners – 10,000 sq ft / Silicon Valley HQ – SF, NY, MEX, BRZ, IND (+ more) – 700 Founders / 200 Mentors – Focus: Design, Data, Distribution • 400+ Co’s / 100 Intl / 20+ Countries – Wildfire (acq GOOG, $350M) – Twilio – SendGrid – TaskRabbit – MakerBot – Viki – 9GAG – Tapastic / Tapas Media – [Korean startup TBA]
- 5. GeeksOnaPlane.com (my excuse for an Intl road trip w/ geeky friends) • Travel The World with Geeks & VCs • Meet MORE Geeks & VCs in other countries • Learn about Intl markets, technology, people • Get drunk & eat great food with friends who don’t speak your language • East Asia (3x), Europe (2x), LatAm (2x), India • Next: Middle East, India, SE Asia, Africa
- 6. Global Languages • English: 1-2B+ ppl, most online, high GDP, modest growth • Mandarin: 1B+ ppl, lots online, med GDP, flat growth • Spanish: 500M+ ppl, some online, med GDP, strong growth • Arabic: 500M+ ppl, some online, low/med GDP, strong growth • Others: Hindi, Portuguese, French, German, Japanese, Russian, Korean, etc
- 7. Global Markets • US/Can/UK/AU (400M+): big market, not much growth but lots of spend • Europe (400-500M): not much growth, many lang, high GDP • China / E. Asia (1B+): lots of ppl, growing usage / GDP, flat growth (pop.) • LatAm (500M+): Brazil, Mexico, Argentina, Colombia, Chile; LOTS growth • India/Pak/South Asia (1.5B+): lots of ppl, growing mobile, strong growth • SE Asia (600M+): Indonesia, Vietnam, Thailand, Philippines; strong growth • Middle East / Arabic (500M+): growing mobile, lots of future growth • Africa (700M+): growing infrastructure, lots of future growth
- 8. How to Assess Global Markets • 1) # of ppl / language speakers by geography • 2) % internet usage (web, mobile, smartphone, etc) • 3) $ Avg GDP / $ online spend / disposable income • Online spend / lang, geo = (#ppl) * (%internet) * ($GDP) – % Growth rates of ppl, lang, internet, GDP • Currency, country, culture, etc • Online distrib’tn platforms (search, social, mobile, video, etc) • Online payment methods / credit card distr • Physical goods delivery / logistics • Social media usage / behavior • 3 markets in 1: rich, middle-class, internet poor
- 9. Distribution Platforms Customer Reach: 100M+ • Search: Google (also Baidu, Yandex, Yahoo-J) • Social: Facebook, Twitter (also TenCent, Sina, vKontakte) • Mobile: Apple (iPhone, iPad), Android • Media: YouTube (Video), Blogs, Photos, Music • Comm: Email, IM/Chat, SMS, Voice
- 10. Why You SHOULD NOT Go Global because ur a tiny little startup, you don’t speak the language, & your local market is big enough
- 11. Why Stay Local? Because it’s HOME. • You don’t speak English (well enough). • Your solution won’t travel well / you won’t localize it well. • There’s not as many people competing locally. • Your local market has 50M+ users. • You have customers / revenue. • You have great living situation, family, kids, etc
- 12. Why You SHOULD Go Global Because u live in a tiny little country, local investors are too conservative, don’t write*enough+ checks and/or give u crappy, low valuations.
- 13. Why Go Global / US / China? (because California is *awesome*) • It’s BIG. (US, China are huge markets) • All the [rich, online] customers are here. • All the investors are here (Silicon Valley) – also: Local Investors Screw You / Don’t Invest / Low Val$ • All the platforms & partners are here (Silicon Valley). – NorCal: Google, Facebook, Twitter, Apple, Android, YouTube • Because you watch too many action movies and rap videos. • Because you love California / NYC. (hey, we understand )
- 14. Angel* List: It Rocks. (angel.co) • Startups & Investors • Activity & Metrics • Platform & APIs • *ps – not just for Angels, not just for USA