the niche field of technology
Many international startups dream of entering a venture capital or international accelerator program. The availability of capital is critical to growing your business. The international market, however, is substantially smaller than the domestic market, even in the niche field of technology. The combined global market is almost exactly equal in size to that of the national market, but there is a significant difference: it is significantly harder to tap into the global market all at once, even with a large venture capital company. Still, the startup must determine whether the alternative is worse than continuing to operate within the constraints of their domestic market.
One of the reasons that international startups are so difficult to obtain funding is that the potential investors are often much larger than the number of startups in any given region. Additionally, if the company has chosen to be operational in an area that is already mature and therefore lacks growth potential, securing seed money or venture capital is going to be even more difficult. Nevertheless, the startup should continue to look for opportunities to expand the reach of its offerings into new markets, as well as increase its customer base beyond the existing ones. The ability to do this makes sense not only from a business perspective but also from a human resources standpoint. An easier path to success typically results in happier employees and higher employee retention.
willing to take a risk on new companies
While some venture capitalists may not be willing to take a risk on new companies based out of the United States, there is no real evidence that this willingness to invest in the startup is based solely on a “love of the American economy.” In fact, most venture capitalists have their roots in the entrepreneurial environment of the United States. There are few countries that have a more pro-enterprise culture than the United States, which is one of the reasons why international startups remain so difficult to finance in the U.S.
One thing that is absolutely true about international startups is that they need to venture capitalists who can understand the market opportunity clearly and can provide the necessary guidance on how to grow and monetize that platform.. That is really where it becomes a challenge. In order to attract the right venture capitalists, an international company must demonstrate not only the potential growth prospects but also a clear plan to address those problems. Without a clear plan, those in the startup will likely find themselves at the point where they need outside help in the form of funding or advice on how to get that funding. Unfortunately, it is also quite common for those venture capitalists to pass on making additional investments to companies simply because they believe that those companies have not done their homework when it comes to evaluating potential partners.
network marketing on the Internet
For international startups, the answer to this problem generally lies with network marketing. There are many great entrepreneurs currently network marketing on the Internet, but it can also be beneficial to reach out to those with entrepreneurial backgrounds that can help define the strategy and lead implementation. In particular, some of the most successful entrepreneurs to come out of the U.S. are the creators of companies like Krisch and PayDotCom. By using a distribution network like Krisch or PayDotCom, international startups can easily bring highly targeted qualified buyers into their business without spending thousands of dollars on advertising. If an entrepreneur is able to master this important aspect of international marketing, the financial rewards can be substantial.
One final example of how accelerator programs can help international startups is with a back home company in the United States. An entrepreneur or executive from a foreign company may be willing to invest time, capital and knowledge in order to launch a successful product in the United States. In order to attract such a person, however, it is necessary to develop a marketing plan that focuses on building brand awareness in the United States and can then translate that to strong sales in overseas markets. Such a plan is the key to being able to attract such a high quality partner and investor.