Home4 Ways Startups in Emerging Markets Can Take a Quantum Leap in Mature Markets – Crunchbase News

4 Ways Startups in Emerging Markets Can Take a Quantum Leap in Mature Markets – Crunchbase News

By Luisa Rubio Arribas

The digital transformation that is unfolding presents a great opportunity for emerging companies in emerging markets to bring their innovation and technical expertise to the table, in particular Where foreign investors flock to emerging markets at the fastest pace since 2013.

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Companies in these areas have the financial backing and the diversified perspective to expand, but they first need to know how to make the leap, starting with these four areas:

Make your product repeatable and scalable

You must have a fully functional product, with proven market compatibility, before you dive into a mature market. Ideally, your product should already dominate the market at home, or be at the top level. If not, you should pause your internationalization plans.

Luisa Rubio Arribas from Wayra X

Whatever your target location, user experience should be the primary focus of your growth strategy. The nuances of language, culture, and customer behavior will change their experience with your product. Interview locals, read research reports, and speak with expert local investors or influencers who have seen trends in your industry over time and can prepare you for user expectations.

However, to be a scalable company, you need to find a way to keep the core product roughly the same across all of your target markets, with very slight differences mainly related to language, messaging and style. If you are redesigning your product for each individual market, you will run out of money and energy too quickly to sustain your expansion.

Choose your entry time carefully

A common mistake founders make is to fall into the allure of expanding globally, losing sight of current conditions.

Perform a complete internal analysis of your business performance. Review key metrics such as sales, customer loyalty, and net promoter score over the past year. You may have noticed a rise in sales or revenue but also experienced consistent weekly losses, in which case you need to spend some time stabilizing your numbers before looking to grow overseas.

You also need to improve the activity of your competitors. How many players are already operating in the target market? Pay close attention to when they made the leap and whether there are any similarities with your company. If the circumstances are completely different, this may be a red flag that you have to wait.

Don’t fund finance

Bigger, more established markets need more momentum than booting up gives you, so it’s best to get the money elsewhere.

Public funding is good because a lot of government-led initiatives provide grants and loans to entrepreneurs trying to get into foreign countries. For example, the Taiwanese government has its own custom software To push local companies to international markets. Don’t assume you can only use money from your government; Talk to officials in your target market about potential financial support.

Venture capitalists are another option, as more companies are showing interest in emerging markets. fact, Sequoia Capital Recently launched Funding opportunities for startups in India and Southeast Asia.

Strengthening strategic partnerships

Startup programs can help you better understand new markets, as well as suggest site-specific tools to build a solid business foundation. for example, SamsungStartup lab helps Bring Asian founders of American events such as CES. Embassies and consulates are also useful for resources, contacts or diplomatic support that will make your entry smoother.

Connect with entrepreneurs from your home country and other emerging markets who offer similar solutions to your target country or other countries with similar contexts. Talk to local startups that are already making waves in your industry. You can be annoying without ignoring the great strides that other local businesses have made in your industry.

If you’re in the B2B industry, make a list of clients who have professional connections in your target market – these could be their own partners, investors, or clients – and ask them to set up introductory meetings. If your product is B2C, consider reaching out to local influencers, niche media, and local investors who have a relationship with existing investors.

Startups in emerging markets are innovative forces and can provide much needed solutions to the world. If they had the opportunity to do so, they could expand the centers of Western countries, and make the success of startups a truly global phenomenon.

Luisa Rubio Arriba is the president see X, phoneicaB2C’s Digital Innovation Center provides funding, support, and access to its extensive network of experts, partners, and clients for B2C startups focused on 5G, e-health, e-education, smart homes, entertainment, mobility and the future of work.

clarification: Lee Ann Dias

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