Globalization is not a new trend. It has become increasingly pervasive every decade but early-stage startups have historically been very local — local teams and local investors.
There are still investors who will only invest within a one-mile radius of where they live and only when the entire team is based locally.
This is not an accident. Early-stage startups are hard, and being physically close allows teams to iterate quickly and build a strong shared culture.
But there are also several ways in which having a global perspective can benefit startups.
Competition for customers is global and, once an idea takes off, there are countless competitors willing and able to clone or localize business models.
Being the first to prove a business model is not enough. You need to be the first to scale a business model.
The fight for talent is similarly global.
Instead of being forced to compete in a local market, which is typically a startup hub, it is a competitive advantage if your company can source and manage a global talent pool.
Anti-immigration policies are a real issue and beyond regulations, many people simply do not want to move.