Tanguy Peers is the co-founder of Co.station, a Brussels post-accelerator-based San Francisco that helps companies to develop both sides of the Atlantic with access to the talent, expertise and capital.
There are many blogs out there explaining to European startups how to move to the valley (and how to get around the valley once they arrive).
A new era of tech events began
We're back in New York in November for the 4th edition of our technology event focused on growth.
There are fewer blogs about startups that go the other way, which is understandable. A US startup expanding to Europe already have a significant business in the US, and it is often better financed. He also proved that it can evolve at breakneck speed.
But what you need to thrive in the lucrative European market is not always the speed. There is also an understanding of how Europe is different.
1. Europe is actually 28 markets
First, while Europe is certainly a large market and rich, it is not a homogeneous market as early adopter United States. This means that the triple-digit growth that you are used to will not happen here.
There will be more friction in the beginning as you navigate the 28 sub-markets of Europe, and it is easy to get cold feet. Too often I see companies open European office hit some bumps in the road and decide to "close international."
Deployment and implementation to scale back is an extremely costly exercise, which is why you should make European expansion a priority for the CEO :. to make sure you stay in the race even if / when you hit some turbulence
2. London is not really Europe
Also, please do not think London is Europe, or even the United Kingdom as a nation. Yes, it is more comfortable and familiar in London, but he will also give a very bad impression of the continent Eventually you'll need a real presence on the continent
European business relies heavily on personal networks -... much more than the US Begin build your network today, because the development of these relations will take time, effort and face time.
Also, do not be too surprised if the Europeans invite you to the opera.
3. The Europeans think that you have to adapt to them, and not the reverse
Europeans are culturally different from Americans. I noticed that this comes as a shock to some of Silicon Valley entrepreneurs, who often do not have passports and have never traveled outside of the United States.
This is particularly evident with regard to issues such as privacy. You might think that the European way of looking privacy is outdated or irrelevant, and that you will change by sticking to your guns. Unfortunately, you will not.
". Right to be forgotten "Last year, a US senior diplomat has threatened a trade war with Europe during the supposedly not a week later, the European Commissioner Viviane Redding told the Financial Times:
"" [If] companies want to exploit the European market, they must apply the European standards. "
This European to" put on. "
it obviously was not bluffing: the European Court of justice ruled last month, forcing Google to remove the results of research on individuals. In the hours following the decision took effect, Google has received over 12,000 "right to be forgotten" requests.
For technology companies, this means that the European Commission has the authority to regulate the rules of the Internet worldwide, and he is not afraid to use it.
4. The Europeans think you should pay enough taxes (and they say it)
I see many US companies that optimize their taxes to the extreme with self -called "Double Irish with a Dutch sandwich." While this is a perfectly rational thing to do in the US, it offends Europeans.
last year Google chairman Eric Schmidt stepped on a good number of European fingers when he insisted Bloomberg he was "very proud" of tax systems that allowed it to channel much of its profits in tax havens.
Shortly after Schmidt interview, two high-ranking french officials have proposed a tax on the content generated by the user, aimed squarely at Facebook, Twitter and Google to a lesser extent.
This March, France sent Google a "tax." - essentially a bill for $ 1.5 billion in back taxes
Therea few weeks, the European Commission piled on. He now wants to study whether certain aggressive tax plans are an illegal "state aid." This is a novel and a very aggressive strategy by the European Commission, which has apparently decided that Europe will have its share.
5. Do not "beg forgiveness" - ask permission
Somewhat related, how the Silicon Valley of doing business is based on the idea that it is best ask for forgiveness than to ask permission. In Europe, this strategy could paralyze you.
Due to fragmented markets, it might feel that you can get a way with a lot of first in Europe, because your new audience may seem slow to catch on.
But once you wake up sleeping dogs, you might find yourself quagmired and wonder why everyone suddenly is out to get you, not only at European level, but also in 28 individual markets.
The struggle against war on two fronts is difficult. Try War 28 before, in different legal systems in different languages, with very powerful supranational institutions in the mix too. Take Google again :. Aside from the misfortunes of privacy and already mentioned the case of French tax, the company recently settled an antitrust case with the EU over its search results
Facebook, Twitter, and Amazon Apple also feeling the heat in this "war" of the EU on what the German economy minister called "brutal informational capitalism"
is how you can avoid being involved in this war.: understand that Europeans place much higher premium on consensus than the United States. This means you may have to move more slowly at the start.
When I was at eBay, the company finished became a big hit in Europe, in part because he learned to sail in the EU, how to build bridges and work from an understanding of European culture.
a newcomer like Airbnb appears to have cracked that too: the city of Amsterdam has recently created a new category of "private holiday" which allows residents to rent their homes to customers for limited amounts of time .
If you want to become a great global company somewhere down the line, we will discuss how Europe perceives your corporate citizenship. Better to start early.