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Emerging Companies Go Global

September 18, 2019
For founders, entrepreneurs and growth companies, there has never been a better time to take on the world.

Over the past few years, it has become easier than ever for emerging companies to go global. From Tel Aviv to London, and India to Hong Kong, tech-driven businesses are able to pursue international markets more quickly, building scale, winning new users, and taking significant steps towards global success.

Emerging companies have traditionally focused on domestic growth, requiring additional capital to expand overseas. Yet in recent years, startups have begun to launch ambitious global growth plans at an earlier stage. The next wave of tech companies, including those from Israel’s thriving startup scene, are just as likely to have a footprint in North America, Europe or Asia as their home market.

The cost of operating a startup has become cheaper and less location-dependent. It has become easier for early-stage companies to engage with global markets and test products in new locations. Developments including cloud technology and remote-working have enabled companies to find talent overseas and deliver creative ideas. All of this helps to build scale and accelerate success.

Going global at an early stage can help emerging companies prepare for their launch in the US, provide key visibility on earnings and metrics, and valuable insight into English-speaking markets. Companies no longer have to wait for a large investment round before tackling new territories.

Global economies have also become more receptive to overseas startups, recognising their valuable contribution to technological innovation and economic growth. The ability to go global with increased speed opens up new investment opportunities and capital markets. In the US so far this year, we’ve already seen Israeli IPOs reach their highest market share and number of issues since 2015, according to Thomson Reuters data.

Investors are on the lookout for valuable international startups. In Silicon Valley, a surplus of investor capital is waiting to be deployed into exciting startups, but investors are competing for a small pool of attractive deals.  As a result, investors are expanding their horizons beyond the US, seeking out innovative companies from Tel Aviv, Toronto to Turkey.

While it is easier than ever for emerging companies to build an overseas presence, businesses must navigate murky waters early on and require sophisticated counsel earlier than ever. As a global law firm with expertise in emerging companies, and a dedicated Israel practice group, we have experienced and assisted with a variety of issues faced by Israeli tech startups expanding internationally. The right advisers can proactively deal with global challenges and pave the way for international growth.

For companies at the very start of their journey, online resources can play a key role. Emerging companies can benefit from detailed and verified information on how to create startup documents, deal with industry jargon, and learn about the investment cycle from sites such as our own offering, LathamDrive

For founders, entrepreneurs and growth companies, there has never been a better time to take on the world.

A version of this article was first published in Globes.


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