Local market fit, competition, costs and ease of entry matter more than glamour when choosing where to expand. The article profiles five non-obvious ecosystems (Amsterdam, Vilnius, Toronto, Shenzhen and Medellín) that uGlobally has visited or worked with.
In the previous article we explained why Silicon Valley is such a coveted region when we talk about innovation and technology, and why that same factor makes it, in most cases, not the most strategic region for those wanting to expand their businesses.
All the glamour linked to the Valley undoubtedly makes it the "dream" destination for the vast majority of startup entrepreneurs. However, many entrepreneurs end up setting aside factors that are much more important for the success of their internationalization, such as fit with the local market, intensity of competition, operational costs and ease of entering the country.
Because of this, we will highlight today some less glamorous ecosystems, but that can be much more interesting for leveraging your business at an international level. The ecosystems I bring here are, for the most part, either regions that I have personally visited or that uGlobally has worked with in some way.
Amsterdam, Netherlands (Holland)
Despite being a small country and not very traditional on the map of Brazilian companies, the Netherlands is a region that can offer numerous benefits for your company. In addition to providing visas for startup entrepreneurs and having more than 90% of the population fluent in English, the Netherlands also has the largest number of bilateral agreements in the world, which greatly facilitates your international operations.
- Highlight: 4th most innovative country in the world
- Highlight: #12 ecosystem in the world
- Highlight: Startup visa
- Notable vertical: Life sciences
- Notable vertical: AgTech & Food
Vilnius, Lithuania
I bet many people have never even heard of Vilnius, the second capital that attracts the most FinTechs in Europe, behind only London. The country developed a regulatory sandbox that allows companies to test their products and have direct access to regulators to consult and request a banking license.
The differentiator here is that having a Lithuanian bank license allows your company to operate in 34 countries by providing access to SEPA (Single Euro Payments Area). In this way, the country is positioning itself, notably, as the gateway for FinTechs to the European market.
- Highlight: Top 10 global ecosystems for acquiring cheap talent
- Highlight: Facilitated banking license to operate in 34 countries
- Highlight: Startup visa
- Notable vertical: Fintech
- Notable vertical: Mobility
Toronto, Canada
Canada has been attracting various entrepreneurs because of its openness to foreigners, in addition to providing exceptional quality of life (for those who don't mind the cold much). Many companies end up starting their expansion to North America through Canada precisely because it is a "less complicated" step than entering directly through the United States.
The Toronto region is the second largest cluster of technology companies in North America, with more than 15,000 companies in its surroundings.
- Highlight: Second largest tech cluster in North America
- Highlight: #18 ecosystem in the world
- Highlight: Startup visa
- Notable vertical: Artificial intelligence
- Notable vertical: Life sciences
Shenzhen, China
Of course we couldn't leave a Chinese city off this list. Despite not being popularly known here, the city of Shenzhen is considered the "Silicon Valley of hardware companies." Just to give you an idea, around 90% of all electronics in the world are produced there.
The most impressive thing is that Shenzhen is one of China's newest cities. Less than 40 years old, the region went from being a fishing village to becoming a global technology center with more than 12 million people.
- Highlight: City with the highest electronics production in the world
- Highlight: City with the highest per capita income in China
- Highlight: #18 ecosystem in the world
- Notable vertical: Manufacturing
- Notable vertical: Robotics
Medellín, Colombia
Medellín underwent an impressive transformation. The city gained worldwide fame because of cartels in the 80s/90s and managed to change its trajectory by being recognized as the most innovative city in the world in 2013, in addition to becoming a gateway to the Colombian market.
The city today competes practically on equal terms with the capital Bogotá because of the cost of living, availability of talent and support from the local government.
- Highlight: Recognized worldwide for its transformation
- Highlight: Various government incentives
- Highlight: Access to talent
- Notable vertical: Sustainability
Silicon Valley is not the only option
These are just 5 "non-obvious" ecosystems that I like to highlight when we talk about internationalization for innovative companies. Of course, the world is very large and there are several factors that should be considered when choosing the ideal global market for your company. However, I believe that learning a bit about these regions will help you understand that Silicon Valley is not the only option and that we can explore several more strategic opportunities with your business.
Interview with Rodrigo Olmedo, CEO of uGlobally, on Internationalization
In an exclusive chat, our CEO Lucas Lima spoke with Rodrigo Olmedo, co-founder and CEO of uGlobally, bringing a new perspective to one of the topics that is trending for the coming years: "Internationalization is not just selling abroad: How to learn from global markets?"
Founded in Curitiba and incorporated in the Netherlands, uGlobally is a company focused on helping innovative projects access international markets. uGlobally combined the experience gained in various international expansion projects to create exclusive solutions for those who wish to expand to new markets. Acting in more than 200 companies from 35 countries, the company counts on the partnership of startups, ecosystem actors and several public agencies, such as the European Union, the Dutch consulate and the Brazilian Sebrae.
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