I’ve lately had many discussion on how the break from the Nordics & Baltics and make one’s service or product really global. Just recently I had this discussion here at Nordkapp where I work, so it does not only concern software products but equally all the service provides with international ambitions.

For a technology startup this question focuses many times on the issue of whether they should pack their bags and move to the Silicon Valley or whether they should build a strong user base first at home. Another viable option might be to reach out to London, but then again, many think that will only slows you down in your quest to global market share and you should head straight to the eye of the storm where the battle for the critical masses are fought.

This is more of a ongoing conversation than something that can be answered with a clear Yes or No, but here are some thoughts to start with:

1. If you know which market you want to get to think about getting a board member, an advisory board member or an investor from the market. Instead of trying to bombard firms operating in the given market with a requests for shallow partnerships or just opening an office there, by aligning someone’s interest with yours ie. giving them a stake in your success you can instantly tab into their network of contacts. These people already know who are the people you don’t want to work with, because even though someone might have a nice resume they also might have a bad reputation among the local players, which would make your market entry a disaster. And vice versa: They know exactly who are the perfect partners for you and you don’t end up taking the one you happen to know from a Trade Show two years ago. To get these people on board you need to focus, do your research on who is the right fit with you, work hard, dedicate time to it and make the offer really worth their time.
2. For any consumer technology startup, don’t just visit US and get a sales guy in there. Move there permanently for a few years if that’s the market you aim for. And if you’re building the next consumer web service, that is most likely the market you should aim for to get the traction over competitors. That said, you should still cultivate your network back at home so you can also benefit from that and link other firms from back home to your new contacts. This goes for the time of high growth when you’re just building your product, but especially for the time after you have made your millions. You can have a huge advantage by having a network in both ends whether you start another startup or decide turn into an investor.
3. When choosing an investor, you want to be careful for not choosing some small local fund, because they might actually limit your company to reach its full potential since they’ll hold you back in fearing that they might get squeezed out in the later investing rounds. Also, since cycle times for an exit are growing (what was an exit in 5 years, looks more like an exit in 8 years now) you need a big enough fund that can follow up without running out of money.
4. Same goes for advisory board members: Some people active in the Finnish startup scene have voiced their concern about the quality of people present in many of the more informal investor get-togethers. You don’t want some former technology company middle manager from the early 90’s influencing your vision, because they advice you to take the path they are familiar with which more often than not is something different from going global from day one.
5. Even though Silicon Valley is the epicenter of much of the activity in the consumer technology startup world don’t only look at the US. Do see how fertile ground India, China or Asia might be for your product. When they all start to look good, remember to choose your battles. As a startup you have very limited resources and if you’d like to push through you need to focus your efforts.

What else should a startup consider when trying to go international?

Here’s Jaiku founders’ advice on how to choose between London and the Silicon Valley when building a successful startup (original post here)

Photo by oskay (CC:BY).

I’m playing with the Nokia’s new service Nokia Friend View as I type this. I downloaded the software on my phone this morning and been using it through out the day.

In short the service wants to be a location aware microbloggin service.

I’m not blown away, nor have I completely lost hope with Nokia. They are trying fairly hard. The service is very Nokia-like in that it’s not very user friendly compared to some others that have emerged from the west coast of US. The UI is rather ugly and after you start using it feels that someone has designed it on paper, but never really used it herself as it’s not logical all the way through. Similarly the service is still very buggy, not loading the map on the web browser, eating one’s battery in no time …the list goes on and has still some really retarded features like the fact that the nick name is case sensitive. I registered as villevesterinen and now wondering whether there will be another VilleVesterinen. Does not really help you finding your friends from the service if there’s two of each name.

I won’t go into the nitty gritty, data portability etc. yet as Nokia is still in developing the service and I haven’t used it long enough to get down and dirty with the features. Similarly, I won’t go into how it could be integrated with Nokia Chat and the Ovi.com service in general for the simple reason that I don’t use Ovi.com, since it only replicates other services I use like Flickr and MobileMe. Who knows, maybe Friend View lures me to use all of Nokia’s services, but I’m not there yet. Nor is Nokia for that matter.





It’s not all downhill though and this, after all, is still an early Beta. I don’t know how my Nokia Friend View usage will evolve and where it becomes the most useful. I’d imagine I’d like to use it when I’m traveling and planning to meet people in a city at a given time. It would be very nice to see where their train is coming or see their plane above the Atlantic, but there’s still a bit go before that. That said, it would be nice to see when my girlfriend is coming from work and see when she’s just behind the corner or if she hasn’t left from the office yet. But as many (In Finnish) communicated, they’d like to be able to control the level of privacy between the different contacts. The more of these services advance, the more privacy they invade. Nevertheless, I can find uses for the service already.

The sad part of this new service is that Nokia once had ‘the next big thing’ right in front of it:  Jaiku was build right on Nokia’s front porch and is doing much of what Nokia Friend View tries to do without the location bit. Add location to Jaiku and Voilà! One of Jaiku’s co-founders and the father of the idea, Jyri Engeström, even worked at Nokia at one time, but of course it was too risky for the mobile phone giant at the time: It could not possibly put its weight behind a venture that is not already ubiquitous like microbloggin services now. That would be risky, which does not go very well with the Finnish management ideology. To make the irony complete Jaiku conversation threads are currently the best places to find out about how the Friend View works (or does not work in many cases), and Jaiku is still better service than Nokia Friend View, Twitter, Plazes and FriendFeed combined.

Now that Nokia has found the new focus for its strategy from the online services arena to go along with the hardware business, it should also embrace the new ways of working. Jaiku went to Google and nothing wrong with that, but if Nokia wants to be an innovative player in the online services field it needs to embrace different kinds of risks compared to ones it has before. This does not deal with mobile phone design, but rather with new behavior in communication as the web evolves. This risk involves betting on smart people, but not in a way Nokia has done before. I’m not talking about hard core MBA heavy hitters that can manage the hell out of any firm, but rather people who are the real pirates of the Internet. I’m talking about entrepreneurs.

Nokia needs to look at how Google has approached this issue by acquiring early stage startups and getting a boat load of smart people along with it. Nokia should start seeing the value in these energetic and smart people who want to change the way we communicate and won’t stop until they do.

Similarly, Stefan Constantinescu, who’s telling about the service in the YouTube clip made by Nokia, is also one of the best evangelist Nokia could hope for as the guy is super active and vocal in for example Jaiku. Let’s hope that Nokia has learned its lesson and sees the value in what Stefan is doing and tunes into the Jaiku channels for community feedback.

Occasionally we intentionally divert from our primary focus on reviewing and reporting on internet and mobile software startups and growth entrepreneurship in and from the Nordic and Baltic countries to examine the European, the Baltic and the Nordic landscape for the entrepreneurs. Here’s another take on the issue.

Dirk Van Quaquebeke, the founder of Tailor Nation (Facebook app here), talked to me about his experiences on running a startup while working at the same time in Deutsche Bank, where to set up your startup and whether London is the startup hub you should go to as an entrepreneur.

When I asked what would he do if given the chance to do a startup anywhere, Dirk said 1) do an MBA in IIM in India (given one is a business guy). 2) While at it build a team around you since you get access to the great talent pool while in India. 3) Given there’s three founders, one stays offshore production center at India 4) pay people well & even incentivize some through equity 5) build a sales force through the founders located onshore like London (given its a product that needs a sales force).

Dirk emphasized that London is mainly a PR center where its rather expensive to live (something I can assure!), thus living in somewhere else like Copenhagen or Berlin might be equally good or even better option. He also pointed out that you can do development across the time zones, but if you can avoid it do so because you will be much more efficient.

I will disagree with Dirk especially on the MBA bit -if you do an MBA you will most likely rationalize yourself out of all the big ideas and dreams you had, and even if you can stick to your dreams the socialization effect among the MBA students will lure you to the nice (yet bored out of your mind) life at McKinsey. Naturally, there are exceptions for example if you have already started a couple of startups and you like to know a bit more about say finance. In the latter case, an MBA might be a good option to meet other like minded people in a place like Stanford and maybe even learn a bit. But as a rule of thump, avoid MBA schools!

What comes to the location, I believe one should build strong ties to the Silicon Valley (something Jyri Engeström, the Jaiku co-fouder, also reiterated) as it can significantly cut the time to market which might make a big difference from the time the window opens to the point where a competitor has already a critical mass and beyond your reach. That said, I still believe one should stick to the community s/he knows be it Copenhagen, London or Helsinki, since culture and support mechanisms like your family and friends make a big difference and if that is not a big enough reason you might loose not only time but also your money while trying to relocate and adjust.

I met the Jaiku founders (now at Google), Petteri Koponen and Jyri Engeström, yesterday at the Seedcamp evening party and asked them how they see the startup scene in Europe versus US and of course what they are up to nowadays.

We’ve been speculating about Jaiku moving the Google App Engine and on Wednesday when Jaiku came back up after a period of down time many believed the move had happened. Yet, Jyri clarified that this is not the case yet and the actual move is still ahead.

During the weekend and early this week when Jaiku was down, it was only moved as far as to the Google data center. Nevertheless, as it came back up it was already lighting fast compared to what it had been before and equally important the invitations opened up and are now unlimited.

And there’s more in the cards. For example, the new Jaiku API will support OAuth, which in itself is already fantastic. If the service can also handle an ever increasing user traffic without slowing down significantly or crashing it will be interesting to see whether it can still make itself a serious competitor for Twitter. We certainly hope so.

Edit: If you’d like to have an invite, ask for one in the comments (and do leave your real e-mail in the field provided) - we’re more than happy to spread the good around.