Aiming for global expansion from day one

When you speak to European start-up founders, you often hear that they are contemplating a progressive expansion plan, that takes them progressively from their home market to bigger and more competitive landscapes in Europe, such as the UK and Germany. This has been the conventional approach so far: validate your concept in Europe then go global and jump across the pond. The idea of going to the US quickly has been seen as bold, risky and expensive. However, mindsets are changing fast, and more and more start-ups are setting up shop in the US with a view to develop commercially there, and much earlier in their lifecycle.

In this clear and insightful article, recently published in Les Echos, Bernard Liautau from Balderton Capital, extolls the virtues of going global from day one, and taking on the challenges of competition and demanding customers as early as possible.

Bernard advocates that in today’s digital world frontiers no longer exist. As a result, global expansion is a higher priority for start-ups, and they should make the move without waiting to have reached a critical size in their home market.

He argues that consumers have become very similar in their use of technology and their behaviors across the US and Europe. Furthermore, for a start-up to develop its offer and become competitive, it has to confront its biggest rivals and its most demanding customers very early in its product development cycle. In general, the place to do this is going to be the US due to its sheer size and to the presence of all the main actors.

Finally, other additional elements have gained importance such as being the first mover, attracting the best talent and the early adopters, as well as benefiting from network effects.

Bernard invites start-ups to think big from day one, and that means thinking globally and aiming for the US.