1. Rapid Globalization of Technology Startups Tony Bailetti November 1, 2012 Carleton.ca/tim

2. 2 AGENDA Abstract Information on first three years of 21 technology startups in 12 countries was examined to identify what startups did to internationalize early and rapidly Observation & research questions What we did What startups do Our interpretation Next steps Reference

3. 3 page 3 OBSERVATIONS Technology startups that internationalize early and rapidly ignore conventional approaches and perform better Conventional approaches to internationalization are too costly, take too long, are too risky and frustrate innovative individuals and organizations Investors pay more for startups that grow rapidly outside of home market

4. 4 RESEARCH QUESTIONS What do technology startups do to globalize early and rapidly? How can Carleton support the launch and growth of technology companies that are global from inception? Is rapid internationalization from inception for everybody? Downside of rapid globalization?

5. 5 page 5 WHAT WE DID Reviewed six literature streams Defined criteria to identify technology startups that globalized early and rapidly Searched for startups that met criteria worldwide Examined what these startups did to globalize early and rapidly Identified factors that drive early and rapid globalization

6. 6 page 6 SIX LITERATURE STREAMS Rapid internationalization International new ventures Effectuation logic Global startups Gradual internationalization process models Multinational enterprise theory and OLI model

7. 7 page 7 SIX LITERATURE STREAMS Acquire and deploy knowledge quickly Secure commitments to act jointly and quickly Use the Internet to sell Build relational capital Gain legitimacy Strengthen global capability

8. 8 page 8 SAMPLE: 21 STARTUPS 1. Ansarada: 2005; virtual data rooms 2. Atlassian: 2002; tools for programmers working on a code base 3. Noja Power Switchgear: 2002; low and medium voltage technology switchgear products 4. Griaule Biometrics: 2002; identifying people on the basis of their unique fingerprint features 5. PapayaMobile: 2008; developers reach 50 million users across the globe quickly to improve their return on investment for game development 6. Dewak: 2008; help desk products and services

9. 9 page 9 12 COUNTRIES 7. eToro: 2007; marketplace to trade currencies, commodities and indices online in a simple, transparent and enjoyable way 8. 360 Cities s.r.o: 2007; panoramic photography services 9. GoodData: 2007; on-demand business intelligence dashboards 10. Zendesk: 2007; manages customer service responses 11. Eagleyard Photonics: 2002; High power laser diodes for medical, scientific and industrial applications 12. Sellaband: 2006; Crowdfunding for the purpose of recording professional albums

10. 10 page 10 8 TECHNOLOGY TYPES 13. Conduit: 2005; enables publishers/users to interact 14. Tufin: 2005; network security products and solutions 15. Mojang: 2009; video games 16. Canonical: 2004; software customization and management of large groups of servers and desktops 17. GPEG International: 2005; design and manufacturer of displays that are bright, clear and easier to use

11. 11 page 11 18. Airbnb: 2008;Marketplace for unique accomodations 19. Dropbox: 2007; file hosting service that offers cloud storage, file synchronization, and client software 20. Groupon: 2008; provides discounted gift certificates usable at local or national companies 21. Sproxil: 2008; mobile product authentication solutions

12. 12 page 12 WHAT SAMPLE STARTUPS DID Address problem that was pervasive globally Use collaborative entrepreneurial processes to globalize early and rapidly Use Web processes to provide infrastructure

13. 13 page 13 WHAT STARTUPS MUST GET RIGHT Knowledge about a questions and its answer that are important to large and growing number of foreign and domestic organizations Stakeholders’ commitments to develop a novel, narrow, and differentiated solution quickly Collaborative entrepreneurship at a global scale Relational capital Legitimacy Global capability development

14. 14 NEXT STEPS  Launch and grow technology startups designed to be global at inception  Establish healthy business ecosystem to support technology startups that internationalize rapidly from inception  Transfer lessons learned to others  Deliver a leadership proof point www.timreview.ca/article/569

15. 15 page 15 RECENT REFERENCE What technology firms must get right to globalize early and rapidly (2012) http://timreview.ca/sites/default/files/article_PDF/Bailetti_TIMReview_Oc tober2012.pdf

16. 16 page 16 THANK YOU!