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Expanding
into Europe
A guide for
US entrepreneurs
Index Ventures
Technology will have a profound impact
on every aspect of our lives. What we
have seen to date is just the beginning.
We are a venture capital firm spanning
the US and European startup ecosystems.
The entrepreneurs we work with are
creating the next generation of iconic
companies, and include luminaries such
as Pieter van der Does (Adyen), Drew
Houston (Dropbox), Samir Desai (Funding
Circle), Ilkka Paananen (Supercell) and
Stewart Butterfield (Slack).
Our eclectic experience, insatiable
curiosity, and unique point of view are
driven by a common purpose to make
a positive contribution to the world.
We love the process of exploring and
understanding entrepreneurs ambitions
from seed, to venture, to growth. We
help to harness and focus their energy,
expand to the next level, and bring their
visions to life.
We only back the hungriest and most
aspirational startups. If you feel ready to
join our international network of founders,
investors, creators and operators call us,
and lets begin the conversation.
April 2017
Index Ventures Expanding into Europe Contents 3
Contents
1. The Index Ventures experience 4 3. Where to set up 17 7. Where next? 35
Our unique insight 5 Where and why? 18 A single hub or multiple offices? 36
Successful expansions 5 Target companies to hire from 18 Strategy and timeline 36
Why Europe? 7 Who can help? 18 How fast is too fast? 36
Timing and opportunity 7 The political climate: 18
Paradigms from our portfolio 7 In the wake of Brexit 8. Team culture 37
The significance of International 7 Clustering significance 19
Keeping your team connected 38
Location rankings 19
Decisions and reporting 38
2. Hiring: who, when, how? 8 London 20
Maintaining culture across continents 38
Dublin 22
Making that first key hire 9
Amsterdam 24
Experience or potential? 9 9. The nuts and bolts of legal 39
Berlin 25
Do you need a captain or a player? 9
Data and privacy 40
The ideal profile 9
4. Selling 26 The state of affairs in Europe 40
What can you expect? 11
Regulation 40
What will they expect? 11 Strategy and segmentation 27
Stock option planning 41
Onboarding 11 Language: Is English enough? 27
Office space 41
A landing team. Yea or nay? 11 Compensation and ramp up 27
The right advice 41
Lets talk money 11 Whats different in Europe? 27
Legal 41
The search process 11 Paradigms from our portfolio 28
Visas 41
Recommended recruiters 11 Getting to grips: Germany, France, Spain 28
Accounting 42
Scaling up your team 12 Banking 42
5. Localisation 29
Whos responsible? 12
Speed or caution? 12 What does localisation mean? 30 10. Case studies from the 43
The recruitment process 12 How to get local 30 Index family
Order of hires 13 Translation terrors 30
Anki 44
Values, fit and culture 13 Processing payments 30
Dropbox 47
Onboarding, induction and training 13 Contracts 30
Elastic 49
Human Resources and management 13
Etsy 51
Stock Options 13 6. Marketing 31
Outbrain 54
Hiring across geographies 14 Central or distributed? 32 Squarespace 57
Labour law legalese 14 Marketing collateral 32 Stack Overflow 59
On maternity leave 14 Online marketing 32 Zendesk 61
Employment law 15 PR and launch 32
Events 33 Appendix 64
Hires 33
Company profiles 65
Who can help and how? 33
Directory of resources 67
Product and Engineering 34 Acronym glossary 68
The European role in product 34 Thank you 69
Engineering teams in Europe 34 Contact 70
Index Ventures Expanding into Europe Go to Contents page The Index Ventures experience 4
1 The Index
Ventures
experience
Index Ventures Expanding into Europe Go to Contents page The Index Ventures experience 5
Zrich
1 EMEA HQ
Brussels
1 EMEA HQ
Paris
1 EMEA HQ
Index Ventures Expanding into Europe Go to Contents page The Index Ventures experience 6
London HQ Amsterdam HQ
Dublin HQ
Zurich HQ Paris HQ
Brussels HQ Stuttgart HQ
Cambridge HQ Edinburgh HQ
Index Ventures Expanding into Europe Go to Contents page The Index Ventures experience 7
2 Hiring: who,
when, how?
Index Ventures Expanding into Europe Go to Contents page Hiring: who, when, how? 9
What can you expect? Onboarding The search process Recommended recruiters
Before making the hire, ask candidates Your General Manager should spend as Search within your networks first, then try For General Manager and Vice President
to design a business plan. This will give much time as possible ramping up at a European recruiter. Most will be based candidates talk to:
you an idea of their vision and capability. HQ after being hired. Involve them in out of London with access to further
Speak to people who have worked with the business so they get a feel for your markets. Make sure the recruiter maps 360 Leaders
them. If you have doubts, reach out to us operations and culture, and can build out the potential candidate pool and be B2C & B2B: Ben Markland
for advice. relationships with the rest of your team. clear about which cities to search in. B2B: Jerry Maynard
Look to your General Manager for A good recruiter will provide calibration
European strategy, and input into the A landing team. candidates within a week, and a shortlist
Erevena
B2B: Dan Hyde
broader budget and timelines. Hire for Yea or nay? of at least five people within a month to
local impact. Find someone who has the six weeks. This should include three who
UP Group
profile or the business relationships that Sending a landing team over from the US fit the brief and two wildcards perhaps
B2C: Clare Johnston
will help you succeed. can have several advantages including a rising star with the ability to step up, or
building shared values, market credibility, someone without domain expertise.
Gillamor Stephens
What will they expect? and short-term cost savings. However, Take into account negotiation time and B2B: Steve Lavelle
you may lose out on a regional go-to- notice periods, which are between one
An experienced candidate will want market strategy, and will not have the and three months in Europe. This means Renaissance Leadership
chemistry with the Chief Executive local connections required to build out that your hire may not start for four to B2B: Sebastian Kayll
Officer. They will want to know how your business. six months.
much support they will get from HQ: Is We recommend hiring a local European True Search
the HQ team aware of ramp up times Leader and sending supporting team Andrew Banks
and budgets? How does the product members from HQ.
Its unusual for a GM hire
roadmap relate to Europe? Will European to be a purely search hire.
customers be able to speak to security Companies increasingly
and data teams at HQ? And how many Lets talk money More often, its someone
want to buy from product
HQ teams will be available during known through networks.
European working hours? General Manager or Vice President people not Sales people.
Sales roles are typically $350K for an Stuart Collingwood Your Leader should have a
experienced candidate. The range is GM EMEA, Anki
The best GM EMEA $200K-$450K based on experience. deep understanding of the
candidates in Enterprise
Compensation is generally split 65/35 product positioning and
between base and bonus for General Its important that the roadmap for Europe.
Sales are in high demand Manager roles and 50/50 for Vice
ultimate decision maker
President Sales roles. Candidates will
and get head-hunted expect options and will have a good in the US is the person Jerry Maynard
every week. understanding of them. Offers vary leading the search. This
Director, 360 Leaders
widely, but for post-B the average is
Jerry Maynard 0.3-0.45%. We can talk through your could be the CEO or CRO.
Director, 360 Leaders individual circumstances.
Daniel Hyde
CEO, Erevena
Index Ventures Expanding into Europe Go to Contents page Hiring: who, when, how? 12
Whos responsible?
Scaling up The hiring plan for the rest of the European
It depends how much
the firm wants to invest.
Its all about relationships.
I joined the company
your team team should be the responsibility of the
General Manager or Local Leader. He or
she needs to decide with input from HQ,
Ive lead teams where we
had to meet $1.5 million
because I knew Matt the
GM EMEA, and he joined
what roles are needed and how best to targets per region before because he knew Zac the
hire for them. hiring new people, and COO. When expanding
Many companies operate a matrix other teams where we into new countries, hiring
structure, where employees report
into Europe but also have a dotted line
scaled up faster. people you know and trust
to HQ. If so, local hires should also be Steven Rose
helps a lot.
interviewed by their functional Leaders Former VP EMEA, Pure Storage
in the US. This will ensure culture fit. Maeve Hurley
VP Finance and Operations, Zendesk
Balancing input from HQ with local
Stuart Collingwood leading Anki Europe
autonomy to the European Leader
took another tack, choosing to work solo Hiring profiles and playbooks are usually
is a tricky task. Ultimately, it depends
for the first year while he got to grips with modelled on the US versions with some
on building a good relationship, great
the business and scouted out key hires. amendments for local flavour.
communication, and frequent travel
to and fro. Keep in mind that your hires will usually
Living with a startup for have notice periods and it will take
Speed or caution? a period is critical before several months before they can begin
work. The more senior your hires, the
You need to strike the right balance ramping up. Youve got to longer their notice periods will be.
of building momentum without losing understand the business
control, and the pace of hiring will depend
on objectives, sector, levels of funding from end-to-end first. Its difficult to tell your
and commitment to growth.
Stuart Collingwood US team that youve found
Pure Storage with Steven Rose at the
helm invested heavily to scale fast and
GM EMEA, Anki this great person, but
grew to 120 people within 18 months. it will take three or six
The recruitment process months to get them in
Ideally, your General Manager will have and thats the norm!
a number of candidates willing to follow
him or her into your company. Rely on Stuart Collingwood
networks as much as possible as you did GM EMEA, Anki
in the US to build out the highest quality,
most dedicated talent pool.
Index Ventures Expanding into Europe Go to Contents page Hiring: who, when, how? 13
Order of hires We would fly new Human Resources and Outbrain was good
While this will depend very heavily on your
European hires to London management at understanding
business model and strategy here is a for training where they A local Human Resources function gives
geographical nuances
common order of hires we have seen: would meet department employees someone to talk to in their and what attracts the
1 Key local hire heads and socialise office. One-to-one video calls with HQ right people. You need to
2 Sales are not enough to manage personnel
3 Sales Engineers
over dinner. This helped problems that inevitably arise. If you account for the benefits
4 Professional Services everyone feel a part of dont tackle these issues early on, they European Leaders will
can grow into bigger problems. The local
5
6
Customer Success
Operations/Office Management
something bigger than Human Resources manager will also be
expect.
7 Marketing themselves. heavily involved in recruiting, so they
Lindsey Dale
should have blended experience. If you
Companies often regret not investing in Lindsey Dale HR Consultant, Outbrain
cannot justify a full-time or permanent
marketing resource in Europe earlier. HR Consultant, Outbrain hire, consider hiring a consultant.
Statutory Healthcare Not Statutory Not Statutory 7% of salary 7% employers 13% + Health Insurance
Contributions (Included in social taxes) (Included in social taxes)
Min. Notice Period 1 week notice for less than 1 week for less than 2 1 month for less than 5 1 month for less than 2 Between 1 and 3 months
2 years of service years of service years of service years of service in most cases
(Depends on the applicable
Additional week for every Goes up to 8 weeks for Goes up to 4 months for Goes up to 5 months for Collective Bargaining Agreement)
year of service up to max more than 15 years of more than 15 years of more than 12 years of
of 12 weeks service service service
Sick Leave 88.45 per week An employer is not 70% of employees salary 6 weeks 100% paid leave Variable
(Statutory after 3 days of required to pay sick leave during the first 2 years of (Generally 6 weeks per (Depends on the employees
sickness on no pay) to employees illness sickness) seniority and the provisions of the
applicable Collective Bargaining
Agreement)
Maternity Leave 26 weeks (including 26 weeks statutory pay 16 weeks paid leave 6 weeks before birth and 16 weeks for the 1st and
compulsory first 2 weeks) from the Department of (between 4 and 6 weeks 8 weeks after, women are the 2nd child, 26 weeks
+ 26 weeks additional Social Protection before the expected date prohibited from working for the 3rd child
maternity leave if wanted of delivery and 10 to 12 and can generally claim full
A further 16 weeks unpaid More weeks in case of
Up to 39 weeks statutory additional maternity leave weeks after) pay from their employer
specific circumstances
maternity pay at 139.58 can be taken There are additional benefits (twins, illness, etc.)
per week for further time off
An allowance is paid for
maternity leave
Paternity Leave 2 weeks paid (139.58 per Two weeks paternity with 2 days paid leave and 3 Employees are entitled to 11 consecutive days with
week) plus right to request benefits unpaid parental leave of up to 3 daily compensation
the sharing of parental years per child (not fully paid)
leave with mother and can share some paid
benefits with their partner
Unfair Dismissal Max damages: approx Maximum compensation Fair dismissal max The Protection Against Damages depending on
80,000 plus up to approx is 2 years gross damages EUR 76,000 or Dismissal Act (PADA) act the prejudice suffered, and
15,000 remuneration one years salary if more applies if the employer at least equal to 6 months
employs more than gross remuneration in
Employee must have been Employee must have Unfair is uncapped, but on
ten employees and the case of dismissal of an
employed for 2 years or been employed for 1 year average in case law 1.3
employee has been employee having at least
more (80,000 cap is lifted if there or more monthly salaries per year
working for the same 2 years seniority with a
is a successful discrimination or of service
whistleblowing claim) employer for more than company of at least 11
six months (Once PADA employees
applies, every dismissal needs to
be justified by the employer. The
employer has the burden of proof
in this context. Roughly 90% of
the German protection against
dismissal lawsuits end by mutual
settlement agreement. Severance
is usually between 0.5 and 1.0
gross monthly salary per year of
service)
Non Competes No default legal restriction Non-competes are used Must be agreed upon Statutory non-compete Must be limited in time
in Ireland but are mostly in writing, including during the term of the and duration, justified by
Possible to include employment relationship the interest of the firm
used for mid-level and substantial business
contractual non-competes and must not prevent the
senior employees only interests in case of a fixed
Post-contractual non-
Maximum possible term contract. In general, employee from finding
compete restrictions can
restricted period will max post-contractual another job. Mandatory
only be agreed in writing for
usually be 12 months period is 1 year financial remuneration of
a maximum term of 2 years
at least 30% of the gross
In practice, can be difficult Compensation of at least monthly salary
to enforce 50% of salary (including
variable remuneration) must
be paid for the entire term
Unions and work Vary depending on the Works Councils are Works council mandatory Vary depending on the Employee delegates must
councils industry but are not uncommon in Ireland at 50 or more employees industry be elected once a company
standard has 11+ employees
Has the opportunity Unions and works councils
to give advice on any are very powerful in A Works Council and
strategic decision, and to Germany a Health and Safety
give consent on decisions Committee (CHSCT)
concerning collective must be elected from 50+
terms and conditions employees
Thanks to Taylor Wessing
Index Ventures Expanding into Europe Go to Contents page Where to set up 17
3 Where to set up
Index Ventures Expanding into Europe Go to Contents page Where to set up 18
Clustering Significance EMEA HQ Important Presence Location Rankings London Dublin Amsterdam
1=best
(Beyond country operations)
1 1 3
Ease of set up London and Dublin are the most
London / UK Box Airbnb comparable to the US.
Cloudera Amazon
DocuSign Apple
1 1 3
English Language German and French skills will
Oracle Etsy be required if you set up in Berlin
Palantir Expedia or Paris.
Salesforce Facebook
1 3 2
Enterprise The UK, France and Germany are
Snapchat Google Customer the biggest markets to consider.
VMWare Microsoft
WeWork Twitter
1 3 2
Availability of Greatest availability of senior
Zendesk Yahoo Senior Talent talent in London, followed by
Amsterdam and Dublin - you may
Dublin / Ireland Airbnb Amazon be able to get senior leaders to
relocate.
Dropbox Zendesk
1 1 3
Etsy Availability of There are deep multilingual talent
Facebook Junior hires pools in London and Dublin.
Fitbit
3 1 2
Gilt Groupe Salaries Salaries will be highest in London.
Google
Hubspot
Indeed
3 1 2
Cost Dublin and Berlin will be the
LinkedIn cheapest cities to operate in.
Marketo
Mongo DB
2 1 3
Corporation Tax Corporation tax ranges from
Qualtrics 12.5% (Ireland) to 33.3% (France).
Stripe
Twitter
1 3 2
Air links to London and Amsterdam have
Yahoo US & Europe the most connected airports.
Why London?
London
If its near Heathrow, everyone drives in Soho, Fitzrovia or Covent Garden
and drives out, and that doesnt create a Good for adtech
Lots of factors in its favour. English cohesive workplace culture. Average 50-90 per square foot
language, cultural parallels with US, travel
hub, deep talent pools, multilingual, City of London
packed with Enterprise-grade prospects
If you are an enterprise The City of London is the commercial
and partners, particularly in financial company the typical route is heart. Almost a city state that has
services. Many US companies have built its own regulations and laws. It is
up a UK audience and clients ahead of
London because the people the powerhouse of the UK economy
formally launching in Europe. who buy your software attracting international corporate giants
that sit alongside the ancient guilds and
The major US tech companies have major are there. You could set up historic monuments.
hubs in London - even if they retain their elsewhere but spend a lot of Good for financial services sector
formal European HQ in Ireland for tax
reasons. Google, Facebook, and Amazon
time travelling to the UK to Average 40- 90 per square foot
have large engineering teams in London, build your brand.
as well as key Account Sales, and West London
Business Development teams. Daniel Hyde Close to M4 corridor out to the West.
CEO, Erevena Massive regeneration is attracting head
Salaries and cost of living are high and offices of major brands with high quality
Brexit is generating political uncertainty space and a wealth of places to socialise
particularly for fintech companies. Office space and chill out.
neighbourhoods Paddington
London is great. Its Commuter links for sales people
East London working in established software
not hard to convince The East End is Londons rapidly growing incumbents located in the Thames valley
twentysomethings creative community on the edge of Average 55 - 80 per square foot
to move to a big city. The City with many young businesses
attracted by the vibrant mix of clubs,
Matt Price restaurants, bars and cafs. Clerkenwell, US companies come to
GM EMEA, Zendesk Shoreditch and Hoxton good for a London because there is
consumer startup, or if targeting the
startup or developer communities.
a great talent pool with an
Where in London Average 35- 65 per square foot
international perspective.
Locate your offices in central London. John Smith
West End Partner, Gillamor Stephens
No question. Its just a question of
The West End is Londons cultural and
neighbourhood. There is an Enterprise
retail centre with many established HQs
talent pool outside London near the Recommended realtors
of global businesses. All the media and ad
M4 corridor but central London is the Colliers
agencies are here, and the influx of new
tech hub. Consider your proximity to DeVono Cresa
technology and gentrification is changing
customers and whether your office Gale Priggen
traditional neighbourhoods.
should be a destination. Hanlon Bennett
Index Ventures Expanding into Europe Go to Contents page Where to set up 21
Heathrow Gatwick
Airport 22km Airport 60km Victoria VAUXHALL
1km
Index Ventures Expanding into Europe Go to Contents page Where to set up 22
Workspaces
1 The Digital Hub
Dublin Airport 500m
DRUMCONDRA 2 Dogpatch Labs
8km 3 Glandore
EMEA HQ
4 Airbnb
5 Facebook
6 Fitbit
7 Gilt Groupe
8 Google
Phoenix 9 Hubspot
Park 10 Indeed
2
11 LinkedIn
9 Dublin Port 12 Marketo
SMITHFIELD 17
13 Mongo DB
19 14 Qualtrics
SILICON DOCKS 15 Stripe
16 Twitter
17 Yahoo
1 13 5 4 Index portfolio companies
20 18 Dropbox
21
19 Etsy
16 20 Slack
14 8
15 21 Squarespace
22 Zendesk
10
3
11
6
18
7
22 Dublin
Bay
HAROLDS CROSS
TERENURE 12 8km
Index Ventures Expanding into Europe Go to Contents page Where to set up 24
AMSTERDAM-ZUID
3 5km 14
10
Amsterdam Airport 11
Schiphol 5km 19 34km
Index Ventures Expanding into Europe Go to Contents page Where to set up 25
Locations
Berlin
Berlin buzzes with innovation and
regeneration. Its a magnet for creative
thinkers and entrepreneurs. The city is still Many of Berlins startups are in former
finding its feet post-reunification, but is East Berlin around Torstrasse, otherwise
driven by an upbeat and optimistic energy. known as Silicon Allee. Pockets of
startups are huddled around Mitte,
Prenzlauer Berg and Friedrichshain and
There is no central city Kreuzberg.
hub in Germany. We had
a number of developers Rents
in Berlin due to a strong Median rents paid by startups are
startup scene there, but our currently around 13 monthly per square
customers were all over metre and only just below rents paid by
traditional office tenants averaging 14
the country in Frankfurt, per square metre.
Cologne, Munich, Hamburg
and Dsseldorf. Talent
Robin Sharpe Berlin has many young Leaders with
Vice President of Operations, Elastic Rocket Internet experience. Management
levels of successful startups are setting
up their own companies. Salaries can be
Berlin has no big industry such as banks, lower than in other parts of the world.
pharmaceutical and automotive, but
there are lots of startups in the B2C and
adtech space. The cost of living and office
space is cheaper than other major cities.
Berlin attracts a young international talent
pool. The co-working scene is very active
and many companies begin in a shared
space such as WeWork before leasing
long-term.
However, it has been much less
successful to date in attracting the major
US tech companies. It has less talent
in B2B Software and Sales. Its still the
outlier as a choice for EMEA HQ, relative
to our other three city recommendations.
Index Ventures Expanding into Europe Go to Contents page Selling 26
4 Selling
Index Ventures Expanding into Europe Go to Contents page Selling 27
month test with partners in a procurement processes coming through Germany, France In France, you can fly
market or work with them on the pipeline. The Head of Europe handled and Spain in and out for business
these deals initially before hiring a
three projects before signing specialist and building out a strategic Show clients that you are serious about deals, whereas in Germany
up. You want partners who accounts unit. their market. Provide them with local you need significant
feel that your business is Elastic
language support or take a large group
local presence to be
of people to your meetings.
important to them. In US Elastic built up a core hub in San taken seriously. This also
Francisco, whereas in Europe they Germany
Kevin Kimber divided their Sales structure into North depends on what stage
Former VP EMEA, Zuora EMEA based in London and South your market is at.
EMEA based in Amsterdam. Pre-sales is
In Germany, we needed
essential because its a technical product to engage with external Simon Edelstyn
Paradigms from our so there is a 1:2.3 ratio of pre-sales to recruiters to find Former MD Europe, Outbrain
portfolio sales staff. In Europe, the deal sizes
experienced Sales people.
were significantly less than the size
Zendesk of the US in terms of annual contract There is a lot of competition Spain
Zendesk was receiving inbound interest value. Elastic found that the very largest
customers required reps to engage face-
and working for a US based
from across Europe with 70 - 80% of new
to-face, whereas smaller customer could startup may not appeal to People in Spain want
business arriving organically. They built
a multilingual, multinational Sales team be transacted via video-conferencing someone who is risk averse. to know you and get
out of their London offices, hiring Sales and screen sharing. The team also comfortable before doing
and Account Management and staffed up runs public developer meet-ups and
two people per quarter. The hiring profile bespoke marketing events for individual
Lindsey Dale business. Often foreigners
HR Consultant, Outbrain
was foreign nationals who were fluent enterprises. doing deals in Spain or Italy
in English plus their native language. The can come across as too
hires were typically entrepreneurially
minded, a few years out of college with aggressive.
a little sales experience. Half the total
hires had relocated to London to join Simon Edelstyn
Zendesk. Hires were sent to the US for Former MD Europe, Outbrain
an onboarding programme.
Index Ventures Expanding into Europe Go to Contents page Localisation 29
5 Localisation
Index Ventures Expanding into Europe Go to Contents page Localisation 30
6 Marketing
Index Ventures Expanding into Europe Go to Contents page Marketing 32
Central or distributed? Adoption of our open Online marketing Im not a fan of global
Balancing centralised marketing versus
source product was Determine a few key metrics early on
agencies. Their internal
localised marketing can be tricky. The widespread. The biggest and segment by country. Compare offices often compete, and
European office will want marketing challenge was helping to your US markets to get a baseline. your opportunity might
flexibility but your global branding and Online marketing should be run from a
messaging must be standardised. users realise that behind single hub. Decide whether you need be too small for them to
Many well established US companies
the Elasticsearch project a local market social feed or one for all focus on. I prefer to find
is a company with other your European operations. Social feeds good local freelancers.
are unknown to European consumers.
will need regular updating. Paid digital
To break through will require a mix great products! channels can be managed centrally for
Nicole Vanderbilt
of PR, online, above-the-line, events,
the UK or if in English, but local pay-per-
content, and Sales collateral, depending Robin Sharpe VP International, Etsy
click (PPC) agencies or internal resource
on your go-to-market plan. Much of this Vice President of Operations, Elastic will be needed for running non-English
advertising will have to be developed for
campaigns.
local markets.
Marketing collateral
PR and launch
Its essential to have strong Initially English speaking consumers will
be okay with US collateral but increased Start with a freelancer or small agency.
standardised corporate market share will require empathetic Scale-up by hiring a local internal marketer.
branding and messaging translation. Adapt 50% of existing Your PR agency can liaise with the US
overarching all marketing content and create 50% new content. Of HQ or with the European Marketing Lead.
particular importance is the creation of Balance an agencys experience with their
activities. But its important local case studies using local client logos. hunger to prioritise you.
to have localised marketing If you are building an Inbound Sales Relationships with journalists are crucial.
to ensure that messaging funnel, strong local marketing is important European media is trends and insights
led. Your company may get featured as
and collateral is relevant. to drive awareness and demand.
part of a larger story but there could be
less Forbes-style front page opportunities.
Simon Edelstyn
Former MD Europe, Outbrain Driving inbound needs real Create a narrative that your target
audience can relate to. Keep in mind
marketing support. Ten that it can be difficult to get good press
We allocate European years ago everyone would coverage with only a marketing/sales
have been doing outbound local spokesperson.
marketing budgets 70%
to global campaigns and but today that just isnt the The media landscape across Germany,
Switzerland and Austria can be treated as a
30% to local ones. right approach. You need single market, but adjust for local variation.
too many touchpoints.
Nicole Vanderbilt
VP International, Etsy Johann Butting
Head of Sales EMEA, Slack
Index Ventures Expanding into Europe Go to Contents page Marketing 33
Events Hires
Hold launches when you have already High profile hires generate publicity.
established a network of local Customer Hiring from a competitor tells the market
Advocates. Tie in your launch story with you have arrived and this will attract a
larger company milestones. Disrupt bigger talent pool.
existing markets with road-show events
that build awareness and close deals.
Its crucial when entering
We ran lightweight low a new market to have
maintenance two-day some marquee names
marketing events across joining from industry. This
European cities where signals your intent to the
we held boot camps talent market.
and training seminars Stuart Collingwood
for prospective clients GM EMEA, Anki
7 Where next?
Index Ventures Expanding into Europe Go to Contents page Where next? 36
A single hub or multiple The art of strategy is For some companies, scaling to new
locations will not make sense.
offices? understanding where
Inside Sales
to get the business
You can effectively service 80% of without putting in any We are a Customer
Europe from a single multi-lingual hub in effort versus where Service, marketing-
Dublin, London or Amsterdam.
you need to invest to driven company, so
Field Sales grow your markets. we dont need multiple
You can start with a hub and some Sales Offices in
remote Sales people, but scaling-up will Nicole Vanderbilt different territories.
require feet on the ground. VP International, Etsy
Raphael Fontes
B2C Director EMEA Operations, Squarespace
You can run digital marketing and staff If you go into a new
multilingual talent out of a single hub. If market, ring fence
you are building a marketplace or need to
build community establish local presence. the investment then How fast is too fast?
measure that markets If you expand too fast and need to unplug,
Strategy and timeline performance against it can be a huge drain on management
8 Team culture
Index Ventures Expanding into Europe Go to Contents page Team culture 38
Keeping your team Avoid taking calls in the You cannot underestimate the human
issues that will arise from running a global
Maintaining culture
connected evening but I checked team. Developing and communicating with across continents
Allow extra time and effort to make
emails regularly and Leaders outside HQ can be a challenge.
Dont try to create identical companies
Establish appropriate levels of autonomy
sure remote teams are cohesive and prompted US team and avoid fluctuating policies as this can but make sure everyone understands
connected. Build relationships early and members if I needed a create local frustration. your values, and decide what qualities you
strengthen them through video calls, joint want to see driven through your company.
projects, and face-to-face visits. response for customers. Hire for cultural fit and carry the brand
Decisions and reporting identity through all office fit-outs. Dropbox
Ensure your European team have access Matt Price sent over a Head Chef from San Francisco
to the wider business through training Former GM EMEA, Zendesk Things change fast at a startup so a for the European operation in Dublin.
and exchange programmes. champion for International at HQ helps
with communication and prioritisation Embrace new cultures. For instance,
Video conferencing is better than phoning. prevents your International Office there is more of a drinking culture in
The GM EMEA needs to You can sync up a video conferencing falling off the map. This may be the Europe than US, and Christmas parties
tool to calendars and screens in meeting Chief Executive Officer, Chief Revenue are a major focal point to end the year.
be in the US HQ every six rooms. Slack is especially good for global Officer or a dedicated Vice President of
weeks or they will forget communication and onboarding. International. Ideally this individual should
what you look like! have a cross functional remit, rather than
it falling to the Vice President of Sales.
Stuart Collingwood
Dont overly rely on
Decide whether the European office is a
GM EMEA, Anki emails when addressing satellite office executing on US decisions,
conflicts. A video or if local teams have autonomy.
All-hands meetings help everyone to conference or phone call Whatever you decide, communicate
often and consistently.
connect. Time differences can make
global calls difficult. Afternoon calls US
can significantly minimise
time can be too late in the day for Europe misunderstandings.
so keep this in mind when scheduling. In the early stages your
Raphael Fontes
Director EMEA Operations, Squarespace
EMEA Leader should
report directly into the
CEO to avoid filtering.
Stuart Collingwood
GM, EMEA, Anki
Index Ventures Expanding into Europe Go to Contents page The nuts and bolts of legal 39
People are surprised by Office space (talk to Adrian Rainey), who offer a $10K
starter package for all the basics plus six
Look into the Tier 1 Exceptional Talent
Visa for Digital Technology to see if any
the margin of discretion Keep it simple for as long as you can. hours free advisory. They have advised of your employees are applicable.
that regulators have in Set up in a co-working space such as numerous startups and US companies
You can get visa support from TechCityUK
expanding into Europe, and have offices
the EU. Establish links WeWork. When you have more than
in the UK, France, Germany, Netherlands
(Maria Palmieri).
twelve in the team commit to a leased
with regulators, not space. It is also possible to sublet or re- and elsewhere.
Germany
to influence them but assign a lease from another startup which You will need to cover: Citizens of the European Economic Area
to understand whats has outgrown its offices. This will shorten (EEA) and Switzerland have the right to
your term commitment. Immigration
work in Germany.
coming down the line. Contracts
Terms and conditions Citizens of the USA and Canada may
David Stallibrass
The right advice Data and privacy law enter Germany without a visa and then
Director, Fingleton Associates Domain registration apply for a residence permit within three
Stock option planning months.
Be prepared to spend for Regulation
Citizens of all other countries must apply
There are major differences across Trademarks and intellectual property
Europe in how close incumbents are good advice on finance, for a visa to enter Germany.
to politicians. Try to understand the tax and employment Visas Look into whether you/your employees
landscape and your levels of risk.
For example, in Germany industrial
law. Its worth its weight qualify for an EU Blue Card which can be
processed more quickly and also allows
companies and car makers are close to in gold and easy to get Visa rules change frequently so check
family members to work.
with the appropriate authorities before
politicians so if you are doing something wrong. This needs budget, making plans.
that upsets them, watch out. Netherlands
especially if you havent You may need a Schengen visa to stay in
UK
Stock option planning done it before. If you want to bring across an existing the Netherlands for a maximum 90-days
employee who doesnt hold an EU in any 180-day period (short stay visa). If
In the UK an Enterprise Management Stuart Collingwood you wish to stay longer than 90-days you
passport and has no employment
Incentive (EMI) scheme is extremely tax GM EMEA, Anki need an authorization for temporary stay.
rights in the UK, you can get a sole
efficient and applies if you have less than representative visa quickly and easily.
250 staff worldwide. It will cost $5-10K to But apply before creating a subsidiary, Ireland
set up, and is worthwhile if you are below Radius Worldwide can help with back Nationals of states outside the European
office expansion, but you will pay a otherwise its harder to do.
this threshold. In other geographies, Economic Area need either a Critical Skills
companies issue options out of their US premium for the single point of contact. US passport holders can travel to the Employment Permit or Work Permit in
or UK option plan. UK without a visa, but no longer than six order to work in Ireland.
Accounting Banking
Different firms are good for different If you are setting up in the UK we
purposes. Engage a large firm for upfront recommend banking with Silicon Valley
tax planning and corporate structure. A Bank if you already have an account with
local firm for ongoing payroll, VAT and them in the US. They offer discounted
accounts. Natalie Langley at PwC can rates to Index Ventures companies, but
provide accounting guidance. iHorizons is do not have a banking licence elsewhere
a good local London accounting firm who in Europe. Alex McCracken can provide
specialise in startups. guidance. Otherwise, consider Barclays,
HSBC or a new hungry entrant such as
You will need to cover:
Metro Bank.
Corporate setup
When opening UK accounts consider that
Tax relief programs
client due diligence is potentially more
Options programs
onerous than the US. You may have to
Transfer pricing
verify details of the business beyond
Cross-Europe VAT registration
simply identity - notarised address proof
Client Contracts, adjusting T&Cs for
for owners. Requirements elsewhere in
International markets
Europe will vary but are generally more
Employee relocations - tax,
onerous than in the UK.
compensation & options adjustments
Most US startups establish a Limited
Company in the UK rather than a branch
office. There are extra disclosure
requirements and liabilities for branches.
Many US startups use their UK Limited
subsidiary as the holding company for all
other European or Worldwide subsidiaries
they subsequently create. However, this
approach may change depending on the
outcome of Brexit negotiations.
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 43
10 Case studies
from the Index
family
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 44
Founded Anki is harnessing robotics and to join the team in 2014. Stuart had
artificial intelligence to deliver magical previously held Vice President EMEA and
2010 experiences that push the boundaries
of the human experience. Founded in
Principal roles at a number of technology
companies.
2010 by three Carnegie Mellon Robotics
The Anki team spoke to people who had
institute graduates, Anki creates
Company headquarters worked with Stuart and invited him to
consumer experiences using cutting edge
HQ before hiring him. Stuart had also
San Francisco technology that was once confined to
robotics labs and research institutes.
submitted a five-page mini business plan
before taking the job.
Snapshot 2016
Expanded to Europe Its unusual for a GM hire
2014 150 employees
12 EMEA employees
Offices in UK, Germany, France
to be a purely search hire.
More often, its someone
known through networks.
Employees at expansion EMEA headquarters Current UK team
65 London UK Sales Director
European Marketing Director
Organisational structure
UK Marketing Director Stuarts reporting line has changed from
Total funding at expansion Last funding round before expansion Key Account Manager the Global Head of Sales, to the Chief
UK Channel Marketing Manager Executive Officer, to the Chief Revenue
$50M
(June 2013)
Customer Care Manager Officer as the company has grown.
$40M Operations Manager
Office Manager
In the early stages your
Series B Expansion objectives EMEA Leader should
Anki launched its first product in the report directly into the
US in October 2013 and started thinking CEO to avoid any filtering.
about International expansion for the
following year.
Profit and loss is managed centrally and
Key local hire the UK team is a matrix structure with all
Sales reporting directly into Stuart.
Co-founder and Chief Executive Officer
of Anki Boris Sofman began discussions
with Stuart Collingwood in 2013. Stuart
All quotes: had previously worked with Ankis then
Stuart Collingwood Marketing Director and was invited
GM EMEA, Anki
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 45
Revenue is the most Its crucial when entering Location: London Legal, finance and
important part of any a new market to have The UK team worked from home before
accounting
early expansion and some marquee names setting up in a Regus office space in Anki began by using centralised law firms
essential for the EMEA joining from the industry. Chiswick Business Park in between for Sales contracts and more, but over
the West End and London Heathrow
Leader to manage This signals your intent Airport. Although Regus was expensive
time used local firms for expediency.
to the talent market. per-person, this was a safer option than
taking on a lease. The team may lease
Go-to-market space in 2017 or 2018 when headcount Be prepared to spend for
In a retail business, you exceeds 18 people. good advice on finance,
Anki started selling in Europe in a limited tax and employment
have to build the brand
capacity 2014. For the first year the Anki Scaling up and law. Its worth its weight
London team comprised of Stuart and one and hiring is critical. To
Customer Care hire. The strategy was to evaluating further in gold and easy to get
know what skills to hire,
work with a few key retailers rather than locations wrong. This needs budget,
trying to satisfy the whole market. sometimes you need to
do the job yourself first. The Anki team will be hiring in France and especially if you havent
Germany to mirror the team structure done it before.
Living with a startup for of the UK. Other markets (Nordics, the
Middle East) are being serviced through
a period is critical before The US has been frustrated by the slow
distribution.
ramping up. You need to
pace of hiring, and one big learning for the
team was the notice period for senior staff Data and privacy
understand the business in Europe. The Anki team has worked around Localisation Since the product is aimed at children,
this by starting to hire well in advance.
from end-to-end. data and privacy was very important for
Most of the localisation has been a product Anki and a big chunk of their legal spend.
and engineering task as it involves localising This was managed centrally, but Stuart
Its difficult to tell your the app. helped define the prioritisation.
Further hiring
US team that youve Marketing collateral including packaging Anki had to consider terms and conditions
Stuart attributes hiring slowly and hiring found this great person, and brochures has been handled centrally.
The European team provides comments
on their website; the End-User Licensing
right to be fundamental to Ankis success. Agreement (EULA), and the double-opt-
The Marketing Director who joined from
but it will take three or and input. out needs in Germany and the storage of
Nintendo was the first critical hire. Her six months to get them consumer data.
joining was considered so important, the in and thats the norm! EMEA doesnt need to
company announced it in a press release.
Further hires included senior individuals be involved locally in
from Lego and Activision. Three years into operation, the team
is considering hiring a European
product until it is really
All quotes:
Finance Manager. Up to now, invoicing, established because it
Stuart Collingwood
wholesaling deals and more have been
done in the US.
can become a distraction.
GM EMEA, Anki
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 46
All quotes:
Stuart Collingwood
GM EMEA, Anki
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 47
Founded Dropbox makes it easy for people to Moving from the San
access and share files so they can be
2007 more productive at home and work.
More than 500 million people around the
Francisco HQ to Dublin
meant that I could help
world use Dropbox including 8 million
businesses, with over 200,000 paying the new Dropboxers
Expanded to Europe
business customers. understand the product,
2013 Expansion objectives
what we were trying to
achieve and our culture.
Given the strength of the Dropbox user Ensuring HQ members
Employees at expansion base in Europe and market potential, were on the ground to
Approx. 200
the companys second office after San
Francisco was located in Dublin. This was help the new members of
fuelled by a move to grow the Enterprise staff was key to the quick
side of the business with local Sales
teams, and establish user support hubs
success we saw in Dublin.
Total funding at expansion Last funding round before expansion
(October 2011) in key regions. At the time, Dropbox had
$272M
Ben Coggins
a Sales team of 20 people. From making
$250M
Head of Strategic Territory
the decision to the landing team setting
Management, AMER,Dropbox
up took a year, and the main concern
Series B
was how a remote office would affect
company culture. Go-to-market
Location: Dublin Dropbox began as a consumer product,
but rapidly expanded into businesses,
Dublin was chosen because of the so go-to-market strategy had to cover
availability of management talent in Sales a spectrum of deals. Once in EMEA,
and Consumer Marketing, and multilingual Dropbox staffed a multilingual Sales
graduates for Inside Sales roles. team and focused on small and medium
sized contracts. As deals became larger,
Three HQ team members moved to
a mid-market team was added selling to
Dublin and were critical to a successful
companies across. Following increased
launch. One was in Sales, the second in
demand from bigger corporations, the
User Operations, and the third was a Sales
team set up offices in London, Paris,
person responsible for recruiting. All three
Amsterdam and Hamburg selling to
were excellent interviewers and they hired
Enterprise-level companies. Through
for culture fit in the Dublin office.
an acquisition, Dropbox now has an
engineering office in Tel Aviv.
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 48
Founded in Amsterdam Founded in 2012 by the people behind Adoption of our open
the popular open source projects;
2012 Elasticsearch, Lucene, and subsequently
adding the people behind Kibana, Beats
source product was
widespread. The biggest
and Logstash, Elastic provides software
products for users to do great things with challenge was helping
Company headquarters
massive amounts of complex structured users realise that behind
Mountain and unstructured data.
Snapshot 2016
the Elasticsearch project
is a company with other
View 430 people globally
great products!
33% of revenues from Europe Robin Sharpe
Vice President of Operations, Elastic
Expansion objectives
European commercial ramp up Last funding round before ramp up Founded in Amsterdam, raised money
Key local hire
(November 2012)
2013
in the US, Elastic was a distributed team
Robin Sharpe was hired in 2013. Before
$10M
from the start with the first 7 employees
this, he held Chief Financial Officer and
spread across Amsterdam, Barcelona,
Vice President Finance roles at Talend,
Prague and the Bay Area. They set up a
Series A
Springsource and IBM. His role was
Employees at ramp up US and UK subsidiary in their first year of
to work closely with Elastics Chief
operation and quickly followed in France
33
Financial Officer to build out the business
and Germany.
infrastructure to support it scaling fast. He
is based in London and travels to Silicon
Valley regularly.
Our main trigger in
Total funding at ramp up EMEA headquarters deciding where to Location
$10M Amsterdam establish, was where
we wanted to sell. We At the end of 2012 the team comprised 14
people who were largely distributed. Since
needed feet on the initial hires were experts in this specialised
ground. If you dont space, it didnt matter where people were
geographically. However, after seeding
have a local presence European markets with Sales contributors
it is much tougher to from Amsterdam the decision was taken
establish the business. to expand European Sales operations in
London, with global Commercial leadership
Nick White out of San Francisco.
CFO, Elastic
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 50
you definitely need a We should have hired EMI scheme was set up very early on.
French speaker and people for handling The company has global bands for roles,
generally irrespective of geographical
preferably a native one. inbound leads six months differences.
earlier than we did. We Globally, the company has 17 different
Robin Sharpe tried outsourcing which subsidiaries including Japan, Australia,
Vice President of Operations, Elastic Singapore . Payrolls were challenging to
did not work standardise but they have started using
Radius outside the US to handle all payroll
There is no central city Martin Blackmore
across its multiple geographies.
Area Vice President, Elastic
hub in Germany. We had
a number of developers
In Europe, the deal sizes were
in Berlin due to strong significantly less than the size of the US
startup scene there, but in terms of annual contract value.
our customers were Elastic found that the very largest
all over the country in customers required reps to engage face-
to-face, whereas smaller customer could
Frankfurt, Cologne, Munich, be transacted via video-conferencing and
Hamburg and Dsseldorf. screen sharing.
The team also runs public developer
Robin Sharpe meet-ups and bespoke marketing events
Vice President of Operations, Elastic for individual enterprises.
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 51
Founded Etsy is a marketplace where people around You need to make sure
the world connect, both online and offline,
2005 to make, sell and buy unique goods.
The heart and soul of Etsy is our global
the International
expansion is a significant
community: the creative entrepreneurs long-term company
Company headquarters who use Etsy to sell what they make or
curate, the shoppers looking for things
goal or it will always get
Brooklyn they cant find anywhere else, the
manufacturers who partner with Etsy
deprioritised. Figuring out
how to influence US HQ
sellers to help them grow, and the Etsy
employees who maintain and nurture from Europe is a core part
European commercial ramp up our marketplace. of the job.
2012 Snapshot 2016
Key local hire
The UK team comprises 30 people. The
Employees at ramp up EMEA headquarters Dublin team is over 50 and includes Etsy hired Nicole Vanderbilt initially
350 Dublin
shared services for International; Finance, as Country Manager for UK, Australia
Human Resources, Customer Service, and Canada enabling the company to
Risk Operations and web engineers. internationalise with a more significant
Commercial strategy. Nicole was
based in London and previously Chief
Total funding at ramp up Last funding round before ramp up Expansion objectives Executive Officer at Mydeco, Vice
(May 2012)
$92M $40M
Etsy began with soft outreach in
internationally by hiring members of
President International at Bebo and
Head of Industry Marketing at Google.
Nicole had a background in marketing
their community and lifestyle bloggers
and business development and an
Series F in France, Germany, UK, Australia and
Canada. In 2012, after a $40M fundraise
the company looked to more Commercial
MBA from Insead.
Go-to-market focus on. I prefer to find approach to international important to service Germany to a high
standard to meet local expectations.
good local freelancers. as well.
Etsys local teams take each market
through a phased approach. Phase one
All of the country teams have a Country
The art of strategy is
focuses on getting the product right and Organisation structure Manager to whom they report locally and understanding where
acquiring sellers. Phase two focuses on
acquiring buyers. Phase three focuses on Etsys International teams mission is to
all of those Country Managers report to to get the business
connecting local buyers to local sellers Regional Directors or the VP of International.
and on growing the brand.
accelerate the growth of the company.
Dublin is different where most of the teams without putting in any
Some of the things required to do this are
directly within their control (e.g., PR and
are shared service teams. They report back effort versus where
into their functional leaders in Brooklyn.
Marketing local marketing), but other things require you need to invest to
a strong partnership with other teams
like Product and Engineering. At first they Scaling up and grow your markets.
When Etsy lands in a new country, one
of its top priorities is simply telling the had a dedicated product and engineering evaluating further
team for international. While this worked
Etsy story. They have done through
in some ways, it also meant that other locations Complicated but
this a combination of in-house experts,
freelancers and agencies. product and engineering teams felt no manageable
responsibility for international. And, the Currently 70% of Etsy transactions are
The Etsy team allocates marketing spend work that dedicated team could do was US to US, but they would like to grow the According to Nicole Vanderbilt, the
of 70% to global campaigns and 30% to limited by their areas of expertise. number of International transactions. Etsy employment challenge in France and
local ones. Digital marketing is now run believes the way to drive this growth is to Germany is overblown. Lawyers can help
centrally out of HQ, having initially been focus on a smaller number of the largest manage convoluted labour laws and the
localised in Europe. opportunities, even though being a global upside trumps the risk e.g. engineers
platform means they are technically being cheaper than the US.
available in almost every country in the
world. The company believes that focus
and going deep in a few countries will
make for better results than going wide.
All quotes:
Nicole Vanderbilt
VP International, Etsy
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 53
All quotes:
Nicole Vanderbilt
VP International, Etsy
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 54
Founded in Israel Outbrain is the leading content discovery to further iterate upon
platform that powers personalised
2006 recommendations to content at the
bottom of article pages on leading
our products and offering.
Every market is unique
publisher websites such as CNN, Sky
News, Guardian, Future Publishing in its way, presenting
Company headquarters
Express Group, SPIEGEL ONLINE, both challenges and
New York Bild, Le Monde and El Pais, serving
more than 250 billion monthly content
recommendations and reaching in the
opportunity, and therefore
we were able to capitalise
region of a billion users every month on the innovation coming
Expanded to Europe across the globe.
from these new markets
2011 Snapshot 2016 and focus it back into our
global efforts at Outbrain.
5 European offices: UK, France,
Employees at expansion Last funding round before expansion Germany (Munich & Dsseldorf), Ultimately, without a
Italy, Spain
(February 2011) global footprint there
100 $11M
120 European employees
will be a great many
Expansion objectives opportunities that you
Total funding at expansion
Series C simply cant go after and
this is limiting.
$29M At the point at which
Outbrain chose to expand Eytan Galai
we were confident that Managing Director ofInternational,
EU headquarters International headquarters Outbrain
ourbusiness model was
London Tel Aviv working well. If you want
to scale, you cant rely on Key local hire
one single market. For Simon Edelstyn was hired in 2011 as
usit was the right time Managing Director of Outbrain Europe.
He had held two Managing Director
to begin to grow our roles previously, for Contraco and EQO
business outside of the US. Communications. Prior to this he was
Director of Syndication at Google.
We also knew that
expanding into new
markets would help us
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 55
Once you go International, While a less competitive In Germany, finding the Further hiring
commit to it. See your market allows more time right people who would Lindsey Dale was hired as an HR consultant
first hire as an investment, to develop and grow the jump ship and leave in 2012 and she led much of the recruiting
and having a competent business, competition established companies of the Outbrain team across Europe.
person on the ground will will follow so locking in and jobs to work in a Outbrain recruited primarily for Sales and
Account Management, and the majority
help with the difficulties partners early is key. On startup was difficult. of recruitment was done internally. The
of the day-to-day remote the other hand, a well- We closed our Hamburg exception was for Country Managers who
management. developed market requires office after a false start were found through a UK based recruiter.
Simon Edelstyn
a significant commitment and opened in Munich
Former Managing Director Europe, in deal-making to because we found the In Germany, we
Outbrain establish momentum. right person there. needed to engage
with external recruiters
Simon Edelstyn Simon Edelstyn
Location Former Managing Director Europe, Former Managing Director Europe, to find experienced
Outbrain chose London because thats
Outbrain Outbrain Salespeople. There is
where they found their first senior hire. a lot of competition
Strategies can vary significantly, and The team eventually closed down two and working for a US
clearly one size does not fit all. While offices in Netherlands and Sweden
Go-to-market Outbrains main competitor employed as there was limited management based startup may not
Outbrain relies on two constituents for
a hub strategy (grouping everyone in a bandwidth to deal with opening so many appeal to someone
central office and flying them to countries new markets at one time.
its business model: publishers (who for meetings), Outbrain employed local who is risk averse.
install content recommendation widgets experts and set up in each country where
and other technologies), and brands they operated. If you go into a new Lindsey Dale
and agencies (who create and distribute HR Consultant, Outbrain
content across the Outbrain network). market, ring fence
When Outbrain launched in Europe, the Where to go next? the investment then
environment was less competitive and
it was possible to onboard publishers The decision to scale-up further came measure that markets
without shared revenue guarantees. from Board level and Simon hired performance against
As the market grew and became more Country Managers in France, Germany,
competitive, publishers demanded Italy, Spain, Netherlands and Sweden. the investment plan.
significantly improved terms. He needed to find Leaders who could
build relationships with agencies and Simon Edelstyn
publishers, especially as deals became Former Managing Director Europe,
more complex. Outbrain
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 56
Snapshot 2016
felt the vibe of the city was in line with
their culture and the IDA (Irelands inward
promotion agency) helped to set up
the team and connected them to local
Expanded to Europe 500 employees vendors (real estate, payroll, solicitors),
$38.5M
The team started in a shared workspace
and scale of the business and increased
$38.5M
(Dogpatch Labs) until it grew to 20 people.
their global audience.
In 2013 Squarespace opened a Dublin Onboarding
Series A office to service global customers 24/7.
Dublin was also chosen as a hub for
International expansion for access to
Several of the hires were sent to the
New York HQ for training, and some
different languages and expertise in Team Leaders came to Dublin to conduct
different markets and time zone coverage. training. The company also developed an
exchange programme, where staff spend
Key local hire a few weeks in alternate offices to learn
best practices, collaborate on projects,
Raphael Fontes was hired in 2014 to and share experience.
lead the Dublin office. He was the first
senior hire outside the US and joined
Squarespace when the local team was
30. Raphael has a marketing and product
background and was previously Head
of New Markets, SMB Advertising
Operations and EMEA at Google.
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 58
and raise the profile of resource for International Squarespace has a monthly Customer
Operations meeting (330 attendees) and
each office, the Customer is a constant challenge. Team Leaders have monthly catch-ups.
Operations team The office uses Google Hangouts and each
meeting room is synced to calendars.
deliberately distributed One of our company
functional ownership values is good work takes The hiring profile
globally amongst time so we focused on
managers in the three The company works with a recruiter in
a high quality rather than New York and is testing for English as
different office locations. rushing it out the door. well as a secondary language. They are
also identifying which profiles turn into
high performers and how to interview
Where to go next? Marketing better for cultural fit.
We are a Customer A big question companies face as Performance
they Internationalise is whether to
Service, marketing-driven use international or local marketing. The company is assessing how to measure
company, so we dont Squarespace began by running campaigns performance for native versus non-native
out of the New York HQ, including English speakers.
need multiple Sales Offices London poster campaigns on the tube.
in different territories. They learned that campaign materials
Adjusting compensation
need to be more educational in new
markets to grow brand awareness. and benefits across cities
Localisation
Remote communications Squarespace benchmarks how competitive
they are against other employers. Benefits
Each country has different tax and VAT
systems and this took a few years to get are similar across offices with health and
right. Dealing in multi-currencies was A video conference or life insurance, free lunch, snacks and stock
a challenge and product, websites and options. They offer local differentiators with
support required multiple languages. For phone call can minimise benefits including bike-to-work schemes
marketing they decided to keep copy in misunderstandings and commuting passes.
English wherever possible.
significantly. One of the big challenges was around
vacation days as the US and Dublin have
different expectations and legislation.
All quotes: 25 vacation days are the norm in Europe
Raphael Fontes which is higher than anything found
Director EMEA Operations, Squarespace in the US.
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 59
Current snapshot
pros and cons of London versus a Dublin
EMEA HQ and re-committed to London.
27 London
As the Stack Overflow Q&A platform Overflow - the platform they used to
grew, the company looked for new find answers to their coding problems
ways to help make programmers lives every day. This warm introduction
better. In 2011, the company launched gave them more credibility and helped
Total funding at expansion Last funding round before expansion Stack Overflow Talent (originally named to advance conversations to speaking
(March 2011) Careers) - a platform designed to fix the more strategically to C-level execs at tech
$18M $12M
broken developer hiring process, and help
software engineers find better jobs.
companies across Europe. The Stack
Overflow Talent proposition was clear:
if youre looking to recruit developers,
Stack Overflow raised Series B funding,
the worlds largest developer community
Series B and set their sights on international
growth; expanding to Europe to enter
new markets.
is the ideal place to attract and engage
technical talent.
The London team focused on working
Key local hire with the most recognisable brand names
in the technology arena, in order to
Stack Overflow focused on strategic leverage their names as social proof.
hires. The first employee was Dimitar Within six months, the team were
Stanimiroff -- a veteran of the European working with Google, Facebook, Skype
startup scene -- as their Sales Director. and Amazon - and Stack Overflow Talent
Dimitar grew the team, hiring Ben Kiziltug was truly established in the UK.
and Stefan Schwarzgruber to expand
Stack Overflows presence in the UK
and Germany.
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 60
Building the team and When the team grew to 70 people Stack
Overflow invested in their own internal
further locations recruitment, hiring a specialist to be
based in the London office. As a result,
As the UK market expanded, the team the company now employs 79 people
saw the potential to dive deeper into in Europe.
Germany and France. New bi-lingual
employees were hired to better support
these new regions; whilst hosting the A tip from Stack
team from the London office. There Overflow
were several challenges; especially in
France where their audience was notably Ben Kiziltug offers advice for other startups
unforgiving in regards to the use of as they enter the European market:
language, and translations made from
American-English.
Invest time and effort
We found scaling in into making sure the key
France to be particularly hires in a new market are
challenging. All content right. They will dictate
had to be in French and the culture of the office
clients really appreciated and set the tone for future
regular face-to-face employees. People will
meetings always refer to local
management to discuss
Ben Kiziltug issues face to face before
Regional Sales Manager, Stack Overflow
speaking about issues
In 2014, the business created a new
over Skype or a hangout
Strategic Accounts team, in order to with an international
better service large and enterprise sized manager.
clients. This involved a greater focus on
customer support, and Stack Overflow Ben Kiziltug
created a formal Customer Success Regional Sales Manager, Stack Overflow
programme to support them.
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 61
Founded in Copenhagen Zendesk is transforming Customer By the time Zendesk expanded into
Service for the digital age, by delivering Europe in 2011 it already had 30% of
2007 category defining cloud-based Customer
Service software. More than 100 million
its customers outside the US. This was
partly due to its penetration of the Nordic
people around the world now receive market (it was founded in Copenhagen),
support from Zendesk-powered Customer and it was a product led SaaS business.
Company headquarters
Service departments and helpdesks.
All quotes:
Matt Price
Former GM EMEA, Zendesk
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 62
Location: London One of the beautiful They were salaried at 35-45K with a
bonus scheme, and half the total hires
Almost everyone
and Dublin things about a high had relocated to London to join Zendesk. underestimates the time
London was a great initial choice for a
volume business is that Hires were sent to the US for an it takes to enter and grow
onboarding programme.
number of reasons. Matt was already you can make lots of not presence in a new market.
The company began to see larger
based there, Zendesk consultants were very expensive mistakes! deals with more complex procurement
Cracking Germany is a
already there and the city had the right
profile to attract hires from Europe. processes coming through the pipeline. three to five year project.
Users began free trials and the Inside Matt handled these deals himself initially
The Dublin EMEA HQ office was before hiring a specialist, which became
Sales Representatives reached out to
set up in 2013 and has Inside Sales
convert them to paying customers. the start of strategic accounts. Data and privacy
teams, Customer Support as well as an
engineering team focused on mobile and Many clients were internet companies As it became clear that Sales staff early stage
chat products. Zendesk also later set up a (Twitter, Groupon) whose needed technical help, Zendesk created
data centre in Dublin. rapid growth required the Zendesk a new role called an enabler which Privacy was not an issue when the
software to scale alongside them. involved pre-sales, post-sales, and some company was targeting small to medium
As the team scaled up they put Sales event training. businesses. A lot of the early privacy work
teams in France and Germany. The Zendesk began to invest more heavily was done with lawyers, getting advice
development teams are in Europe, APAC in networking with the startup sector by
and San Francisco, and Zendesk has also going to meet-ups in London and Berlin
Where to go next? early and making sure the company had
appropriate legal wraps in place.
acquired an analytics team in Montpellier. and connecting with companies and local
Six months after launch, Zendesk
incubators.
analysed Inbound interest and market Data and privacy
Go to market penetration, and found their popularity late stage
Building an Inbound directly proportional to the number of
Zendesk received inbound interest from
across Europe with 70-80% of new
Sales team English speakers in a country. They Zendesk added data-centres in Ireland
were seeing great penetration in the UK, and Germany so that data could be
business arriving organically. For the first Australia and the Nordics but hit a plateau
The team decided to build a multilingual, stored in Europe. They also indicated on
three months, the team consisted of Matt in Germany.
multinational Sales team out of their their website what jurisdiction data was
- managing the Sales pipeline - and three
London offices. They hired for two key The team developed two personas for located in, and completed SOC2 and
Customer Support staff. While evaluating
roles: Sales and Account Management and Germany to understand how to grow ISO2071 compliance.
Sales leads, he found that European
staffed up one to two people per quarter. the market. Hans worked at a Berlin
buyers trialling Zendesk needed outbound
activity to improve conversion. The hiring profile was foreign nationals startup who spoke fluent English. Dieter
fluent in English plus their native was 45, loved dancing at weddings and
language. Job interviews involved never bought anything with a credit card.
candidates conducting a demonstration English worked well for early adopters
of the Zendesk platform. The hires were like Hans, but Zendesk recognized that
typically entrepreneurially minded, a few more localisation (payments and support)
years out of college with a little Sales would be required to expand the Dieter
experience. market long term.
All quotes:
Matt Price
Former GM EMEA, Zendesk
Index Ventures Expanding into Europe Go to Contents page Case studies from the Index family 63
All quotes:
Matt Price
Former GM EMEA, Zendesk
Index Ventures Expanding into Europe Go to Contents page Appendix 64
Appendix
Index Ventures Expanding into Europe Go to Contents page Appendix 65
Company
1stdibs Centrify Dropbox
1stdibs is the leading marketplace for Centrify secures identities against Dropbox is a file sharing solution trusted
luxury antiques and vintage goods. cyberthreats that target todays hybrid by over 500 million users, businesses,
Acronym
GTM Go to market R&D Research and Development BEPS Base Erosion and Profit
Shifting
B2C Business to consumer RD&I Research, Development
Billion
T&Cs
IP
Terms and Conditions
Intellectual Property
Adtech Advertising technology
Mn Million EULA End User License
Fintech Financial technology Agreement
FTE Full Time Equivalent
EMEA Europe, Middle East SMB Small Medium Business
and Africa ACV Annual Contract Value
CMS Content Management
GM General Manager NEMEA North Europe, Middle East System
and Africa
CM Country Manager SV Silicon Valley
SEMEA South Europe, Middle East
VP Sales Vice President of Sales and Africa
Thank you
Adrian Rainey Taylor Wessing Jonathon Southam Amazon Web Pablo Vinageras Garrigues
Services Cobielles
Alex McCracken Silicon Valley Bank
Kevin Kimber SAP Pat English Matheson
Andy Reiss Fingleton Associates
Lindsey Dale Outbrain Peter Nguyen Anki
Ben Coggins Dropbox Philip Lacor Dropbox
Louise Conolly- London & Partners
Ben Kiziltug Stack Overflow Smith Philip Shepherd Taylor Wessing
Dan Hyde Erevena Maeve Hurley Zendesk Rachel Goodman Silicon Valley Bank
David Roldan Google Cloud Mark Simon The Chemistry Club Raphael Fontes Squarespace
David Stallibrass Fingleton Associates Martin Blackmore Elastic Robin Sharpe Elastic
Didier Elzinga Culture Amp Martin Falch 360 Leaders Sam Barnes Radius Worldwide
Dieter Oude Kotte Startup Amsterdam Matt Price Zendesk Sarah Gavin Outbrain
Dimitar Stanimiroff Heresy Mia Iwama London & Partners Simon Edelstyn ROKT
Hastings
Edwin de Rooij Taylor Wessing Steve Lavelle Gillamor Stephens
Netherlands Michelle Conaghan IDA Ireland
Steven Rose Verne Global
Hassan Sohbi Taylor Wessing Natalia Stack Overflow
Germany Radcliffe-Brine Stuart Collingwood Anki
James Downing Silicon Valley Bank Nick Clark Nelson Bostock Tilo Bonow Piabo
Jens Kuehlers Google Cloud Nick Morris Dropbox Tom Waller Dropbox
Jerry Maynard 360 Leaders Nick White Elastic Tyler Palmer Patreon
Johann Butting Slack Nicolas de Witt Taylor Wessing Uzi Shmilovici Base
France
John Fingleton Fingleton Associates
Nicole Vanderbilt Etsy
John Smith Gillamor Stephens
Oliver Wilken Germany Trade and
Jon Williams Culture Amp Invest
Index Ventures
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