In the early days of a technology-based business, investors and management alike typically focus first on building their company's business on their national markets. The risk is already big enough not to add to it in trying to expand internationally before the business is solidly grounded in its home country.

That approach was certainly correct 5 to 10 years ago. Now similar energy and conservation-related problems need to be addressed in every country and we live in a globally connected world where ideas circulate very fast.

On the other side of the planet, someone is likely to have a similar idea at about the same time. That person may grab her/his corner of the global market making a competitor's entry more difficult and reducing its accessible market potential.

This local company may not be a direct competitor, as it may rely on a different, even less efficient, technology solution. However if they have time to entrench themselves in the local market, it will be difficult and costly to promote another solution there, even when it is intrinsically better. Today tech companies have to, very early on, look at global expansion and start building their international presence in key markets where their technology applies.

 For an American investor it is a tough challenge to let portfolio companies venture in countries where there is little they can do to evaluate, control and support what management is doing. The risk is significant to see the value of their investment being sharply reduced before they can realize it.
To build their company’s international presence at a controlled risk, investors need:

• A knowledge of the timing and conditions when their company needs to actively start doing business in a target foreign country;
• People who complement their skills with an intimate knowledge of the local business culture and who take a long time commitment to locally developing the business;
• Local partners who share the same investment philosophy and business approach and who have an exit strategy consistent with their own goals.

Finding a solution that meets those requirements will help investors and company management to plan for more aggressive business development strategies. As a result of a better preparation, the company can position itself to enjoy greater global market share, to build more defendable positions and to increase its value faster