Rapid Globalization of
Technology Startups
Tony Bailetti
November 1, 2012
Carleton.ca/tim
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
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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
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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?
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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
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• Identified factors that drive early and rapid
globalization
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SIX LITERATURE STREAMS
• Rapid internationalization
• International new ventures
• Effectuation logic
• Global startups
• Gradual internationalization process models
• Multinational enterprise theory and OLI model
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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
page 7
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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
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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
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11. Eagleyard Photonics: 2002; High power laser diodes
for medical, scientific and industrial applications
12. Sellaband: 2006; Crowdfunding for the purpose of 9
recording professional albums
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
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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
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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
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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
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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
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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
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THANK YOU!
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