Going Global: Narrative for Startups and Investors

Posted by Global technology interface on November 23, 2021


Investors and VCs have always been epi-centric in their approach and are focusing on the local industry. Investors as we know in the past have avoided foreign markets to minimalize any risks in terms of political, legal, and administrative means but have also had very little understanding of the economies and benefits of what is capable beyond border collaborations. With few Silicon Valley VCs who have reimagined investments and have taken a leap to invest beyond borders have not just inspired but evidently pushed VCs across the globe to explore the route.

 

With immense access to international information, it is a treat for eyes to see the innovation which happening on a global scale. This lay a grand opportunity for VCs to acquire best innovations in the industry and via cross-border investments help investors standout in the markets and support in expanding their knowledge in the industry beyond markets. Few other factors that are supporting the cross-border investments is the opportunity for geographic arbitrage, companies in cross border markets could be undervalued as compared to a start-up which is similar in the local industry. Investors can invest smaller tickets in companies abroad at a comparatively lower valuation, and then support them in reaching other markets which will not just add value to the start-up but also provide better returns to the Investors. Investors can use such means to support Startups in scaling their operations and be able to seek valuable exit in the local markets. There is also an LSE Business Review article study that states “there is strong empirical evidence that entrepreneurial companies funded by a combination of local and international investors tend to outperform those that have only local investors.”

 

In the last couple of years, along with the investors, the start-up ecosystem has also seen a great globalization shift. Start-ups are going global and breaking borders. Cross-border start-up expansions have laid foundation for partnerships and collaborations which aided competitive strength of start-ups in the industry. Cross-border expansion is looked at as a very efficient, natural, and most effective way to ensure knowledge, resources, technological exchange at all levels.

 

This opportunity is incredible as it allows the access to cutting-edge technologies, globally acclaimed scale worthy technologies and with mutual partnerships the sustainable scale leads to competitive products which will fast pace the whole technological and knowledge advancement at the nation level. These advantages are gaining limelight across the globe with most of the countries exploring cross-border activity.

 

Overall, cross-border investments are steadily growing with keen interest from start-ups in all emerging markets worldwide. Cross-border expansion is also very beneficial to start-ups and investors helping them grow their global network and enhance market access, resource mobilization and diversify their investment portfolios. However, global investments and expansion abroad might still be considered difficult and exactly why technology partners/ enablers and hubs have emerged over time who make the process extremely simple and yet valuable.

 

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