Slush Founders Day 2016 keynote presentation

Pitfalls of international expansion for start-ups

Many Silicon Valley tech giants, from Facebook and Google to Tesla, have met with failure abroad, for reasons ranging from IP theft to ignorance of regulations that favour domestic champions.

Remember when Uber tried to take on the Chinese car sharing market? Uber joined a battle on the losing side as they were up against a successful and well-connected local car sharing company known as Didi. Amendments to industry regulation in China happened quickly and without warning, which was bad news for start-ups that depend on local variance and grey zones. The reality is that China is a complex market to conquer. With an excess of $2 billion in cash losses in less than 2 years, it was clear that Uber had to step back. Today, Uber is no longer present in the Chinese market and Didi continues to grow.

Maybe expansion into Europe seems easier, but you still don’t want to fall foul of local regulation, employment law or cultural mistakes right? The TMF Group work with 60% of the Forbes 100 and the FTSE 100 and have helped companies such as LinkedIn, Adobe and Toshiba enter new markets.

Check out this Slush presentation to learn some hard and fast tips to guide you along your international expansion.

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