Internationalising
International expansion is a core part of Go-to-Market fit, and one of the primary growth drivers for scale-up stage software businesses.
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International expansion is often one of the defining inflection points in a company’s go-to-market journey, and one of the most complex to get right. For B2B software businesses, it can unlock major growth, but it also tests how well your product, operations and culture travel.
For European software businesses, internationalisation tends to happen earlier than in the US, where companies can scale domestically for longer. The European Scale‑Up Monitor 2023 reports that many European scale-ups cite internationalisation as a key driver of growth. Separately, the Startup Genome “Scaleup Report” finds that non-US startups that target global markets early improve their chances of success.
Among European founders, there is absolutely an “American dream”. Yet the pattern of expansion – particularly towards the US – has evolved. Data from Index Ventures’ Winning in the US shows that between 2008 and 2014, nearly 60 percent of European startups expanded to the US before raising their Series A. Between 2015 and 2019, that share fell to 33 percent, as more founders focused on deepening traction within Europe first. In recent years, however, the proportion has risen again to around 64 percent, suggesting that the US is once more entering the plans of ambitious European founders – perhaps with a more deliberate, better-prepared approach than a decade ago.
Starting your internationalisation journey in Europe can, however, be quite beneficial for the success of your efforts to conquer new markets. As Daniel Ek, co-founder and CEO of Spotify until the end of 2025, put it:
“[Growing in Europe] will enable you to see nuances and learnings and be able to raise the capital required to go after the US. You will see 10x the competition in the States, and you have to be ready for that.”
DANIEL EK | CEO, SPOTIFY
Internationalisation can be transformative, but it’s rarely straightforward. There’s a wealth of excellent material on the topic (some of our favourites are linked at the end of this section). Here, we focus on outlining our perspective – framed around when, where, and how to expand – to help illustrate what it takes to successfully build and win in new markets.
Knowing when you’re ready
The timing of expansion should align with the level of performance and repeatability at home. Internationalisation tends to magnify existing strengths and weaknesses; if your go-to-market motion isn’t yet highly performant or predictable, it’s worth refining it before replicating it elsewhere. You’ll also need to do your homework – benchmarking deeply the competition, their product’s capabilities, and what their users and / or buyers really care about.
SIGNALS OF READINESS
- You have achieved clear go-to-market fit – predictable pipeline generation and repeatable sales cycles.
- You’re seeing consistent inbound interest from a particular region.
- You have sufficient operational and financial capacity to support a new market without undermining your core.
- Your product and infrastructure are localisation-ready – from language and data compliance to integrations and payments.
- Your research validates your current product capabilities and near-term roadmap are well aligned with local demand patterns
If these aren’t yet in place, expansion usually dilutes focus rather than accelerating growth and can be a very expensive failed investment.
Caveat:
For some companies, internationalisation happens earlier by design. When your ideal customer base is inherently global, for example, selling to large enterprises or to a niche market distributed worldwide, it can make sense to look abroad sooner.
A good illustration is Kodiak Hub, whose customers are global procurement teams rather than local SMEs. As CEO Malin Schmidt describes it, Sweden’s long decision cycles and limited customer pool made early international focus essential. The team designed the platform for global relevance from day one, but expanded with discipline, establishing local presence only after reaching critical mass in each market.
“Our customers are global enterprises, so it made sense to think internationally from the start. But we’ve always grown responsibly, only opening a new office once we had around 10–15 customers there.”
MALIN SCHMIDT, CEO, KODIAK HUB
Choosing where to go – in which markets do you have a right to win?
Selecting where to expand is as important as when. Expansion decisions should be guided by evidence, not opportunistic inbound or anecdotal enthusiasm.
CONSIDERATIONS WHEN CHOOSING A MARKET
- Market size and growth: Is there enough scale to justify the effort?
- Customer similarity: Do local buyers match your current ICP, or will you need to adapt your motion?
- Competitive intensity: How crowded is the space, and what differentiates you?
- Cultural and commercial alignment: Will your value proposition and pricing translate?
- Operational complexity: Consider local tax, employment, data, and legal regimes.
- Ecosystem and network access: Can you leverage existing customers, partners, or investor relationships?
Start where you can credibly win, not just where you aspire to be. Early, sustainable wins in one secondary market can validate the playbook for others.
A classic example here is UIPath – the global leader in robotic process automation which was founded in Romania. The business embarked on a local European expansion play before they attempted to scale into the US. Focussing on winning large European international clients gave them strong precedent to build momentum ahead of them taking on the US subsequently. In a similar way – Celonis, a German process mining business delayed their expansion into the US until they had material success in DACH first, then Europe, then the US.
Assessing your “right to win”
Founders should evaluate:
- Product–market alignment – does your product solve a clearly recognised pain in that market?
- Brand credibility – do your existing customers or case studies resonate locally?
- Commercial model – can your pricing, discounting, and deal structure carry over?
- Cultural resonance – does your messaging feel native to the market?
How do you execute an internationalisation play effectively?
There’s no single playbook for internationalisation. We don’t believe in cookie-cutter formulas – but we believe in the learnings from each internationalisation effort we’ve seen. The right approach for any company depends on product complexity, deal size, and available resources.
COMMON EXPANSION MODELS
- Remote selling (export model) – Serve global customers from HQ to test demand.
Oxx commentary: this often works well in well established categories with well educated enterprise buying groups, but is also particularly well suited to low-touch, product-led acquisition channels. - Partner- or channel-led entry – Work with resellers or distributors to reach customers efficiently.
Oxx commentary: In industries where the channel act as gatekeepers (eg parts of cybersecurity and compliance), it can be highly efficient to test international expansion through existing domestic partners who have an international presence. - Local office or landing team – Establish a small team or country manager to build presence.
Oxx commentary: for categories that are more nascent and / or need more demand building, customer education, or just more local specificity, a local office or landing team can make the most sense. Some very SMB-focussed software is suited to this strategy, or highly regulated categories with strong local requirements. - Founder or senior relocation – Move leadership to the new region to ensure cultural and operational alignment.
Oxx commentary: often we have found that within Europe, permanent senior relocation is rarely necessary. But when going to the US – either the Founder / CEO or a significant part of the senior leadership team & some high performers are usually best advised to open the US. Having an effective ‘culture transplant’ is typically a way to increase chances of success. - Acquisition or merger – Acquire a local company to accelerate market entry and credibility.
Foundations for success:
- A documented GTM playbook ready to replicate.
- Operational readiness: compliance, tax, payroll, payments, and support.
- Defined KPIs and dashboards to measure performance by geography.
- A company culture that scales across borders – inclusive, communicative, and mission-driven.
- A founder-level presence in major expansions (such as the US) – cultural transfer is often as important as operational setup.
A note on remote-first companies
Remote-first structures have changed how international expansion happens. While they can reduce the need for physical offices and make it easier to hire globally, they don’t eliminate the challenges of entering new markets, they simply shift them.
- Speed vs depth: Remote-first teams can test markets faster, but local credibility and cultural insight still take deliberate effort.
- Operational complexity: Hiring across borders can be simpler through global employment platforms, but compliance, tax, and data protection remain real considerations.
- Cultural cohesion: The absence of a shared physical base makes intentional culture-building even more important – particularly when scaling across time zones.
Remote-first companies aren’t necessarily more or less likely to succeed internationally, but they often expand earlier and more diffusely, then consolidate later as patterns of traction emerge.
Concluding thoughts: The foundations for a successful expansion
If you are planning an international expansion, make sure your company has the foundations in place. Product-wise, it needs to be ready for localisation to a new market. Operationally, there need to be documented practices that can be transferred to the new entity. The company culture needs to be internationally friendly. In terms of metrics and KPIs, set up proper GTM KPIs and dashboards to keep track of progress. Finally, make sure to have key competencies across departments such as HR, compliance, and to deal with aspects such as tax, currency and payments, on a local level.
We believe that where the target for the expansion is a major geography, such as the US, it’s generally important for a founder-level employee to move to the target region. This will help move the company culture across – this is one of the most critical and challenging aspects of international expansion. Also, before packing up and sticking a flag in a new market, make sure you have spent enough time planning the operational aspect of setting up a new market. This takes longer than you think.
COMMON PITFALLS
- Mis-timing first international GTM leads
- Hiring the wrong level of local territory leads
- Failing to transfer company culture effectively
- Opportunistically selling to territories with strong inbound
- Insufficient legal/operational preparation
INTERNATIONALISATION PLAYBOOKS
There are many VC playbooks and articles with a huge amount of specific advice on international expansion. Some of our favourites include:
- Index Ventures – Winning in the US
- OpenView – International growth is no longer optional
- Frontline – Expanding to Europe
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