How can you overcome geographic barriers when working with startups?

The secret to overcoming the geographic barriers when working with startups is to have a strong global network. You can only go so deep over Zoom. And you can't always meet in-person, face-to-face. So, we strive to build a network that is at most one degree of separation from the best person to talk with to validate any given startup company and the market opportunity, wherever it is on the planet. Most likely this person will lead you to two or three others. Good network connections will give you much better insights into a market and a different culture than flying in and flying out.

Utilise Technology and Digital Tools: - Leverage digital tools for remote due diligence. - Use blockchain for enhanced transparency and security in transactions. - Foster Local Partnerships and Networks: - Partner with local investors who understand the regional market. - Engage in international VC networks for broader insights and connections. - Regulatory and Legal Compliance: - Navigate cross-border legal frameworks.

Technology Utilization: Embrace video conferencing, project management tools, and communication apps to maintain a strong connection with your team and partners, regardless of their location. Cultural Awareness: Acknowledge cultural differences and adjust your communication approach to promote inclusivity and understanding among team members. Travel Regularly: Schedule regular visits to different locations to meet with team members, partners, and stakeholders in person. This helps build stronger relationships and gain a deeper understanding of local markets. Community Involvement: Engage with local communities and organizations in the regions where your startup operates to cultivate a supportive network and make a positive impact.

To wisely invest in a startup elsewhere, conduct thorough due diligence: - Market Insight: Use data platforms (Statista, Crunchbase) and consult analysts. - Customer Behaviour: Survey tools and social media analysis offer insights. - Competition: Research competitors via databases and industry events. - Regulations: Engage legal experts and review government guidelines. - Direct Observation: If possible, visit the startup and connect with local incubators. - Ongoing Engagement: Maintain an advisory role for continuous updates. This strategy merges data analysis with firsthand insights, ensuring a comprehensive understanding of the investment opportunity within a concise framework.

Many VCs follow the "bicycle rule". They only invest in a startup, if a co-investor they trust "lives a bicycle ride" away. I think you absolutely need market context. Without someone truly understanding the intricacies of a region you can never judge the validity of the startup's strategies. In a best case you as investor have that shared context. But at the minimum you need a trusted syndicate partner who has!

Startups requires a comprehensive approach to research, analysis, and engagement. 1. Conduct thorough market research 2. Tailor offerings to local needs. 3. Engage with local stakeholders. 4. Pilot programs and test markets. 5. Analyze competitors. 6. Monitor trends and technologies. 7. Utilize data analytics. 8. Seek local expertise. 9. Stay agile and iterative. 10. Measure and iterate for optimization. By adopting a systematic and customer-centric approach to understanding markets in different geographies, startups can identify opportunities, mitigate risks, and position themselves for success in diverse and competitive environments.

Nothing beats being on the ground with a founder and their customers in whatever market they’re in! Spend time getting to understand a day in the life of their customers, partners - live in their neighbourhoods, use local payment methods, try ordering goods or applying for a service where you can. (Also never be shy to use a translator!)

Addressing geographic barriers in startup collaborations often involves leveraging digital tools and fostering clear communication channels. One effective strategy is to establish regular video conferences or virtual meetings to maintain a sense of connection despite the distance. Additionally, utilizing project management platforms can streamline workflow and ensure everyone remains on the same page regardless of their physical location. Cultivating a strong culture of transparency and proactive communication is key to overcoming these challenges and fostering successful partnerships with startups across different regions.

It involves employing strategic methods to enable efficient communication, collaboration, and assistance regardless of distance. Here are a few areas of focus: 1. Use tech & virtual calls, and text for real-time collaboration. 2. Use virtual meetings to maintain alignment. 3. Spread awareness to navigate cultural differences. 4. Remote work options to enable diverse schedules. 5. Provide tailored resources for different regions. 6. Equip teams with skills for effective collaboration. 7. Establish protocols to streamline communication. 8. Arrange occasional in-person interactions. 9. Ensure connectivity and data sharing. 10. Emphasize results for performance evaluation. Implementation is Key!

Overcoming geographic barriers in working with startups can be challenging, but utilizing technology, establishing a strong online presence, scheduling regular virtual meetings, encouraging travel and in-person meetings, and understanding cultural differences are key strategies to facilitate collaboration and communication across distances. By implementing these strategies and promoting a culture of communication, collaboration, and understanding, geographic barriers can be effectively overcome when working with startups.

It's too costly and logistically impossible to fly around the world to see every portfolio founder in person. But let all your portfolio founder know that if they come to your city, you'll cancel your meetings and spend the entire day with them. Whenever portfolio founders come to Denver, I try to take them hiking for a half day and then have them over to my house for dinner with my family. You can spend an hour a week on the phone with them for a year and still not know as much about them [as humans] as you would if you go hiking with them for a half day and see where the conversation leads you.

I launched a seed stage fund in New Zealand in 2018 and split my time between NZ and San Francisco. It worked OK but last year I moved to Auckland to be closer to the people and companies I’ve invested in. It makes a difference and I’m now part of the local ecosystem. I agree that investors testing the waters in a foreign market are better off investing in a fund to learn rapidly about the market and companies.

The secret to overcoming the geographic barriers and developing trust when working with startups is to have a strong global network. You can only go so deep over Zoom. And you can't always meet in-person, face-to-face. So, we strive to build a network that is at most one degree of separation from the best person to talk with to validate any given startup company and the market opportunity, wherever it is on the planet. Most likely this person will lead you to two or three others. Ideally, through this network you connect with a local investor who already knows the startup and can help you create the trust that you need. Good network connections will be much more effective than flying in and flying out.

If you’re unable to fly to the places where the founders are based, you may be better off investing via a fund or similar vehicles. Unless you can understand the local market, build a relationship with founders and work together, it may not be a great idea to invest directly. Physical access also helps with introducing the founders to others (customers, partners, possible hires, investors, etc).

Build trust and relationships with local co-investors. They can have a more hands-on approach and understand your founders better.

VC is a long term relationship journey with LPs and founders. Founders are not just looking for money but VCs ability to help them with introductions to potential talent, customers and partners. Be good at strategy or operations or domain or business network. Founders are figuring out a lot of things and your expertise to help them will create value and trust. "Show me that you know me" - Each startup is unique and founders appreciate a lot of context that you bring as VC. Providing generic answers or advise won't help. Understand the business and provide depth of expertise and value. Similar to how you would expect founders to reply to your questions, set the same expectation to respond to founders and show them you are reliable.

Trust, trust, and trust! It's always essential! How do you build it online? You simply stay in touch; often, you can feel it. The first call gives you the first impression, which may not always be accurate. Then you request specific numbers or meet other team members to get a clearer picture. As you communicate via email, you must listen to yourself to see if it feels right. If communication flows smoothly, there are no unexplained delays, and everything progresses well, it's likely a good fit. However, if something seems off, if there's ignorance or the person is overly pushy, it's best to step back.

As a VC, enabling the teams that work in different geographies to operate on full efficiency requires a whole bundle of soft and hard skills. One important variable to always consider is to leverage local partners or representatives for on-the-ground insights, build a network in different geographies, and utilize virtual collaboration tools. Moreover, adapt your investment strategies to account for regional variations in market dynamics, regulations, and cultural factors. Regularly engage with local ecosystems and entrepreneurs to stay informed and foster meaningful relationships despite the distance.

Consistent Communication: Maintain regular communication through various channels to keep everyone updated and involved. Transparency and Honesty: Be transparent about your intentions, capabilities, and challenges. Honesty builds credibility and fosters trust among team members and partners. Respect Cultural Differences: Acknowledge and respect cultural nuances, customs, and communication styles. Show sensitivity to diverse perspectives and adapt your approach accordingly. Foster Personal Connections: Take the time to build personal relationships with team members and partners across different geographies. Understanding each other on a personal level strengthens trust and collaboration.

If you are a Multi national, the origin of your company’s country plays a big role in attracting ting the right talent to even apply for the role. Especially when you are building the nucleus, only a competitive or a higher than market offer is not enough! Building trust and rapport with the early partners(employees), is the most critical aspect to ensure that your second line of leadership starts to look healthy. This then augurs well even for the first set of customers that your sales team gets for you. Happy building trust and rapport :)

It is most surprising to work in different environments at first: meetings over lunch in Paris take more than 1 hour, and we start discussing business after small talk when we get to dessert or coffee; compare that with a 20 min meeting in Silicon Valley where the questions are direct "what are we discussing / what's in it for me / next steps? / let me walk you back". Or never go alone to a meeting in Japan (lack of respect), and always bring a gift. A great tool is to keep track in writing of all these observations and share them over time with your direct network. Erin Meyer's "The Culture Map" is a good book to start understanding the landscape. Talk to people who have worked in those places, and do your research before hand.

Navigating cultural diversity in startup collaborations demands adaptability and respect. Embrace varied perspectives and practices while adjusting communication and negotiation strategies accordingly. Being open-minded and sensitive to cultural nuances strengthens partnerships, fostering innovation and mutual growth.

We are different when it comes down to cultural aspects. It's simultaneously the most beautiful and challenging thing. While it's essential to learn about the culture of a company you're planning to invest in, don't make it your sole focus. Business should remain the top priority. Consider reading "The Culture Map" to gain insights into business communication in various countries. REMEMBER - cultural norms, values, preferences, style, and language can vary. However, don't compromise your principles. If things don't feel right, it may not necessarily be related to cultural aspects.

Localization is key for every startups especially B2C ones, my recommendation would be to scale some central functions at HQ level, while focusing on execution and marketing and customer service to be tailored at local market level.

Diving into a new culture is like exploring a new world. Getting the culture right with startups from different backgrounds isn’t just nice, it’s essential. Learn the ropes, respect their ways, and communicate clearly. It’s not about changing who you are; it’s about expanding your horizon and finding common ground. This journey into cultural differences can spark incredible creativity and breakthroughs. Embrace it fully. When you genuinely respect and engage with another culture, you’re not just building bridges; you're opening doors to endless possibilities and richer collaborations.

3. Competition: Study your competitors to understand their strengths and weaknesses. This will help you identify gaps in the market that your startup can fill. 4. Service: Before a full launch, test your offering with a small segment of your target market. Gather feedback and make necessary adjustments. 5. Develop a Go-to-Market Strategy: Based on your research, create a strategy for entering the market. This should include marketing, sales, and distribution plans that align with your target audience's preferences. 6. Adapt: Once you've entered the market, continuously monitor performance and be ready to adapt your strategy based on customer feedback and market changes.

Cross-cultural startups are a double-edged sword. We gain fresh ideas and approaches, but navigating those cultural nuances is key. Being adaptable, respectful, and an active listener bridges the gap. Imagine it like fine-tuning your communication for each collaboration!

My experience with M&A both as acquirer and as a consultant made me aware of the importance of culture in any acquisition or investment. One must be aware of cultural differences even within different parts of the same country. One has to make an effort to understand these differences and how to handle them.

Ajudando startups de outros países a se estabelecerem no Brasil, ficou claro a necessidade de entender o perfil do consumidor brasileiro. Elementos como pagamento em parcelas, boleto e pix por exemplo, são características específicas do Brasil e que muitas vezes não são entendidas / planejadas pelas empresas que vem de fora

Ask yourself why? Then ask yourself why again. How much can the startup contribute to your market and plan? To warrant investment it needs to clearly overindex on these criteria to draw the additional investment of senior resource and time that geographic and cultural difference will require. Time zone difference is a real factor.

It’s not always possible but getting the founders or founding team together in a room is SO important. Body language, interpersonal interactions, and influence dynamics tell their own stories. There have been many times - several I can recall in detail today they were so jarring - when we passed due to our intuition telling us something was up between the team members. The world has gone remote, but the in-person meeting is still so informative.

Before venturing into new geographical markets, startups must conduct thorough risk assessments. This involves identifying and analyzing potential risks associated with each location, including political instability, regulatory compliance, cultural differences, economic volatility, and logistical challenges. By understanding the specific risks inherent in each market, startups can develop targeted risk management strategies to mitigate potential threats.

Risk management is at the core of any investment strategy, even more when you invest in a new zone. Macroeconomic and political aspects can have a deep impact on the future of the founders and the company. You can watch information on the site of your embassy on this country or on the website of the Foreign Affairs, always a good source of knowledge.

Managing risks in cross-location startup investments is vital. Conduct thorough due diligence, vet founders and teams, and scrutinize contracts. Diversify portfolios, hedge currency exposure, and maintain regular performance monitoring. Stay proactive to safeguard investments and maximize returns.

After working in many countries, one of the most important benefits had been building great relationships over the years in different jurisdictions. Build your trustable network in multiple jurisdictions. Have been saved and warned few times.

Stay focused on the subjects and with integrity, discipline your mind and attitude for favorable results. Admiral Chin Naidu Durban SA BDD for Phantom Digital SA

In managing risks while working with geographically dispersed startups, I prioritize due diligence and local insights. For instance, employing risk assessment tools and data analytics helps identify potential issues early. I also collaborate with local partners who understand the regional market dynamics, providing an invaluable perspective on navigating local challenges. A practical example includes diversifying my portfolio across different regions and sectors to mitigate location-specific risks. This strategy ensures a balanced approach, spreading risk while capitalizing on global opportunities. Regular check-ins and updates via platforms like Zoom or Teams keep the lines of communication open, ensuring any risks are promptly addressed.

Las startups suelen pensar en grande. Escalar en grande, operar en grande, rondas de inversión grandes, pero a veces se pasan por alto los riesgos que eso implica. Se olvidan de leer las letras chiquitas y tomar todas las medidas necesarias, que muchas veces no son tan obvias para que, al expandir su operación, se haga con éxito. Una buena investigación social, legal y presupuestaria, es un punto de partida importante, además de investigar contexto y demás riesgos como los ESG que podrían ser nuevos en un nuevo territorio.

The level of duediligence done varies based on multiple factors to remove the risk of investments: 1) Industry Depth: Make sure that you have the network of industry experts on your side who could help you evaluate the idea/product/service. 2) Financial DD: Make sure someone is helping founders manage the finances in a responsible way and there is a oversight on expenses. 3) Local regulations: Make sure someone from your team understand the local regulations. e.g. CCPA in California, AI regulation for HRTech companies in NYC 4) Regular reporting: Ask for regular updates on product, sales, marketing, finance and operations KPIs. 5) Investor Network: Build network with other investors who invested in this company to watch your back.

Being a fully remote company, it gave us massive benefits to be able to hire the best talent in the world in our field, and have proper diversity. In the last 16 months, we had 3 babies born in the team. Being an in-person company would not have allowed the mothers (including me) to be present with their newborns as we would have wanted to. I am grateful to my team and our investors to believe in our system.

As a VC, collaborating with startups globally offers immense benefits. Access new markets, talents, and opportunities. Gain competitive edge, global perspective, and diversified portfolios for enhanced returns and reputation. Contribute to ecosystem growth and positive global impact. Embrace the opportunities for mutual success and innovation

A big barrier for working across geos ( say between US and Asia) even in the post-covid era is the time zone difference. Since teams are working at different timezones getting a response can take upto 24 hours and can slow down problem solving. This time difference however, can be converted into a benefit if problems of the appropriate size can be passed down (ideally those problems that take 1 day to be solved). For this method to be successful it requires both teams having a similar skill level, trust in each other and ability to define and size the problem well.

Global investing serves dual purposes: Firstly, it aims to leverage untapped potential in developing regions by introducing innovative solutions, mechanisms, and business practices. This engagement offers personal fulfillment through witnessing tangible results and fosters professional growth by sharing expertise, overcoming challenges, and learning. Secondly, it seeks to capitalize on opportunities in developed markets by addressing existing gaps in solutions, mechanisms, and business practices within one's own country or region. Both avenues present opportunities for personal and professional advancement. New locations represent new knowledge, new challenges, exiting from comfort zone - thus new skills and adaptability.

The first investment made in a country or a new geographic zone can be a great way to generate new local opportunities in your deal flow. Founders talk a lot with their peers and share information about investors. That's why it's important to consider a first investment in a new zone as an accelerator for the future in this zone. So try to make a great impression to receive quality decks from leaders of this zone.

In my experience, to overcome geographic barriers in startups, leverage technology like Slack, Zoom, and cloud-based tools for real-time collaboration. Adopt flexible working hours to accommodate time zones and schedule regular video meetings for alignment. Embrace cultural sensitivity training, establish local representation for regional insights, and participate in virtual networking to build community. Use cloud services for accessible IT infrastructure and implement performance monitoring for continuous improvement. These strategies ensure effective communication, operational efficiency, and team cohesion across different locations.

Through startups, the perspective on approaches to solving challenges is expanded once again. They have the freedom to creatively address the problem and experiment with solutions. Often, this leads to additional ideas among suppliers or in customer usage.

A 7 point checklist that I have made for myself- 1. Engage with a very robust ‘localised’ legal counsel or firm 2. Spend months hiring your first set of core team members 3. Have a heavy focus on inter cultural learnings and alignments 4. Create the position for a good translator, if not already provisioned for 5. Be frugal- this sets culture on one part, whilst also brings in the value of economics- easy to go overboard if not dealt sensitively 6. Respect the local working culture and adapt to the common practices to imbibe belongingness 7. Double check on ensuring that your communication is very clear. A foreign country, where you do not speak the language, is vulnerable, to quick misinterpretations. What are your learnings?

To overcome geographic barriers when working with startups, leverage digital tools and platforms like Zoom, Slack, and Asana for efficient communication and project management. Build a flexible work culture that supports asynchronous work, allowing team members in different time zones to collaborate effectively. Use cloud services for document sharing and collaboration to ensure that everyone has access to the necessary information. Attend virtual networking events and webinars to stay connected with the global startup ecosystem. Consider occasional in-person meetups or retreats to strengthen team bonds.

For every market, there is a checklist of criteria that require deep and practical experience to evaluate. Additional to the mentioned before, my checklist includes: - Competitive Landscape: Evaluate how the investment stands out and has an edge over the competition. - Scalability and Business Model: Examine whether the product or service can scale up quickly without increasing costs proportionally. - Exit Strategy: Comprehend the market dynamics and foresee possible exit scenarios (e.g., acquisition, IPO).

There are very few teams that are able to truly work remote and excel. Carefully consider how much culture is a factor for an investment to succeed, and invest accordingly. Distance restricts the ability to perform crucial interventions.

Find people and companies who have the right local knowledge and experience and are prepared to represent you and your business in the geographic area of interest. There will be a cost but this is likely to be more than offset by stronger sales of your product or service.

You also need to understand the legal side of things - if you invest in a different geography you should make sure you understand the relevant regulations that apply for you on the legal and tax side of things

It is still the old saying: think global, act local. You have to know, learn and adapt to local cultures. It´s a relatively small effort to do good research, you can be excited about any start up, see what their home market does, with traction and clients and ultimately look how you can replicate that to another (your) country. On the investment side, you large VC´s having local teams who have a deep understanding about the market.

1. Leverage technology: Utilize communication tools like video conferencing, project management platforms. 2. Establish clear communication channels: Set up regular virtual meetings. 3. Travel when necessary: If feasible, plan occasional visits to meet in person, attend events, or conduct workshops. 4. Embrace cultural differences: Be mindful of cultural nuances and adapt communication styles to foster understanding and collaboration across diverse backgrounds. 5. Build a strong team: Assemble a team with diverse skills and expertise, including individuals who may be located in different regions. 6. Foster a sense of community: Encourage networking, collaboration, and knowledge sharing among team members and external stakeholders.

Executing the geographical expansion for their strategy, terminology clarification in each region would be helpful because it often shows different definitions to avoid communication impediments. For example, weighting on the late stages more than the earlier stages for the fast-returning portfolio, but the definition of the fundraising stage of "seed" or "series-A" shows different sizes and types of stakeholders even in the same industry domains. Respecting the diversity and uniqueness in each country, province, state, and even city, leaders in business development teams can make productive communication to roll out the strategy regionally consensus with headquarters from diverse founders of startups and VCs. #vc #startup #portfolio #hq

To a certain extent, geographic proximity means less than expertise and value. Develop deep expertise in a subject area, whatever that may be, and become ruthlessly efficient at delivering your services. Do a great job and you will get repeat business and referrals.