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

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. 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. It’s now time to grow…

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. 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. 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. 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. Reverse outsourcing
• In Country:
– Headquarters
– Engineering and
Operations
– Goal: grow employment
base
• In US
– Subsidiary
– Management, Business
Development
– Possibility of funding

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. Silicon Valley
Not how it really works…

11. Anatomy of a VC
Risk Factors
Money In à
Money Outà
$$$$$
$
What’s in it for me?

12. International Selling
History,
connections
Cost, speed,
opportunistic
Relationship
7 meetings
Product and
Features
Family, formal
Family, trust