In 2008, I was Moving to London as a global financial crisis caused a break on the growth of millions of businesses.
Five years ago, I was sent to Dublin from headquarters in Mountain View to help manage Google’s European expansion, and despite our incredible growth, the macroeconomic situation put us in an immediate defensive posture and gave us our ambitious plans. Motivated to bring it back.
About a year ago, faced with the uncertainty of a global pandemic, companies around the world went into triage mode again. Employees were laid off, budgets were slashed and development opportunities were pushed down the priority list.
However, as we enter the spring of 2021, the world is a dramatically different place. Tech stocks are already stronger than record-setting IPOs, vaccines are here and revenue growth is again a top priority for B2B SaaS startups.
There are ultimately three ways to drive growth in technology startups: expand your product offering, move into new areas or expand into new markets. Developing new products or moving into new segments may seem like a more comfortable route, but scaling up high-performing business in new markets represents a massive financial upside, especially when executed well. is.
Look at some of the top-performing SaaS businesses of the past few years – Zoom’s 31% revenue from outside US International revenue is 38% for Slack, 39% for Asan, and 48% for Dropbox. If your company survived last year, now is the time to prioritize the transition from defense to crime and international expansion.
Your best growth lever is europe
At $ 27.5 trillion, EMEA represents 38% of the world’s GDP and is the largest addressable market outside the US. Europe is the second largest B2B software market in the world, and a place of choice for more than two decades when American companies look beyond their borders. With the democratization of software distribution, it is now common for companies to discover 10–12% of their business that has come from Europe.
However, by IPO, these same companies average 30% of their revenue from Europe. What changes happen, and how do you capitalize on this massive growth opportunity in a cost-effective way? High-performing companies are investing today and are prioritizing European expansion despite the challenges of the previous year.
For example, Figma, one of the most exciting companies of the past several years, announced its new EMEA headquarters in September. * Clearbank expanded to Europe in Q4 and will invest £ 500m in UK startups over the next year. Nearly all development-stage CEOs decided to postpone international expansion plans in the last 12 months, and for many, “remotely testing” is an effective strategy – but it is only a temporary solution.
The best CEOs are globally ambitious, and they know that opening up Europe’s growth potential is an important step on the path to an IPO.
Expand the moment you’re ready
After months of focusing on survival, it is not always easy to identify the right time to invest in development. However, the key indicators that are the right time to expand into Europe are easy to identify.
First, your customers and revenue growth have stabilized and are accelerating again.