Startups from developing ecosystems often struggle to internationalise, and often if they do, it’s by moving their entire operation to a different country. This is a significant issue in development innovation, where ecosystem progression is stifled by talent and innovation flight towards resource-rich ecosystems. There are plenty of examples of high-potential ecosystems – Turkiye, Malaysia, Thailand, Peru, Mexico to name a few – where the quality of technology and innovation being developed is world class, but where local markets struggle to provide domestic demand. Despite the comparative affordability of exceptional talent, the public and private sectors in these ecosystems are not ready to support the internationalisation of the top strata of startups.
This is also a missed opportunity for policymakers and investors to create a thriving domestic ecosystem, ultimately reducing potential economic growth, job creation, and development.
Often, the complexity of successful internationalisation for startups is underrated, and many programmes purporting to accelerate market access for startups end up being glorified innovation tourism, without real impact, despite the best efforts of funders and delivery partners.
So, how do we do it right?
Internationalising a business is neither about moving operations, nor about attending a trade mission. It’s about building market traction with the minimal capital expenditure, whilst leveraging the competitive advantage of your home country.
The playbook is simple, yet hard to get right. The recipe for success is to find the right product-market fit, adapt your business model to the complexities of the new market, and then plunge head-first into customer discovery, to truly understand how interoperable your innovation is. It’s the CEO’s role to spearhead this – by relocating for short, focussed time periods to the new market, leading business development and validation activities on the ground. Finally, f the buy-in signals from the market are there, start building a local team to hand over operations to at the right time.
Yet, there is a missing element – funding. Internationalisation efforts without the right resources put strain on founding teams, and do not give the startup a fair chance to succeed.
So what is the solution?
Our experience gives us a clear answer to these questions. Short, focussed, tailored internationalisation accelerator programmes work, and they work even better if they are combined with investment. In our recent programme, TRUK, we accelerated 10 Turkish startups towards the UK market, the best of the cohort was backed by investment from local Turkish VC funds. This model was a success because it blended international experience with local resources, enabling exceptional local founders to propel their startup internationally through facilitated channels, whilst at the same time de-risking the investment pipeline.
So, what is next?
Oxentia’s experience on programmes such as TRUK, coupled with our unique knowledge of emerging ecosystems led us to Oxford Gateway. This new programme, in partnership with Oxford Said Entrepreneurship Centre at the Said Business School, University of Oxford, will combine Oxentia’s experience in internationalising startups with the academic rigour and world-leading networks of OSEC, to provide cohorts of international startups the premier point of access to the UK’s ecosystem and market.