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7.4 international expansion.pptx


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Intended audience is startups outside the US who are looking to grow beyond their own borders.

Published in: Business, Economy & Finance
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7.4 international expansion.pptx

  1. 1. International Expansion Strategies This presentation is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this presentation are the sole responsibility of Rick Rasmussen and do not necessarily reflect the views of USAID or the United States Government.
  2. 2. Think Globally •  Local markets are only so large –  Constrained by population, money, culture •  To become venture funded, you need to be a truly global company •  A word of caution: Expanding into a new territory is like doing a brand-new startup
  3. 3. It’s now time to grow…
  4. 4. When to think international •  Some businesses (i.e. Internet sites) start with a global reach that just needs to be exploited •  Best to have made a market entry in country –  Product developed –  First customers realized –  Developed initial traction •  Have adequate financial and management resources to keep local market going strong, while you consider expansion
  5. 5. Planning your expansion •  Warning: Expansion into a new geography is just like doing a new startup •  Research each territory –  –  –  –  Customer needs (discovery, validation) Competitive landscape Cost of entry Steve Blank: Startup Owners Manual •  Do full financials, identify capital requirements •  Develop full launch strategy and tactics plan •  Hire as appropriate
  6. 6. What is growth capital? •  Growth  capital  is  financing  that  helps  companies   accelerate  their  growth.     •  Needed  for  Series  A,  B,  or  C   –  –  –  –  Global  expansion   Next  genera@on  R&D   Acquisi@ons   Funding  receivables   •  Adding  exper@se  to  the  company  at  a  later  stage  
  7. 7. Different vehicles •  Once you have revenues and assets, these are more options to raise funds –  –  –  –  Bank loans Government grants Growth equity Later stage venture capital •  Growth  equity  investors  focus  on  rapidly  growing   companies  with  proven  business  models.  
  8. 8. Reverse outsourcing •  In Country: –  Headquarters –  Engineering and Operations –  Goal: grow employment base •  In US –  Subsidiary –  Management, Business Development –  Possibility of funding
  9. 9. Funding foreign companies in US •  20 mile rule •  Syndication with funding sources in your country with local partners •  Expats are your best bet
  10. 10. Silicon Valley Not how it really works…
  11. 11. Anatomy of a VC Risk Factors Money In à Money Outà $$$$$ $ What’s in it for me?
  12. 12. International Selling History, connections Cost, speed, opportunistic Relationship 7 meetings Product and Features Family, formal Family, trust