The best partnering opportunities and market entry strategies for a Finnish start-up venturing into Silicon Valley
Siitonen, Sampsa; Matilainen, Niki (2016)
Siitonen, Sampsa
Matilainen, Niki
Haaga-Helia ammattikorkeakoulu
2016
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201604204661
https://urn.fi/URN:NBN:fi:amk-201604204661
Tiivistelmä
This study examines what methods there are for a Finnish startup to enter Silicon Valley in pursuit of the American Dream. The primary goal is to determine which concrete and accessible alternatives are available in pursuing business in the Silicon Valley for Witrafi Oy, a smart parking startup from Finland. Thus, the aim is to provide information on methods available for the case-company to enter Silicon Valley with varying degrees of resource commitment.
The thesis work consists of a theory review, data collection and subsequent analysis with recommendations made on how market entry could be pursued by the case company. The theory discusses funding options for a startup in addition to internationalization theories applicable to an early-stage company. The empirical part focuses on providing viable internationalization options for the case company, finishing with recommendations for Witrafi for various levels of resource commitment. The study involved both quantitative and qualitative methods. A qualitative exploratory research approach was used because the aim of the study was to provide additional information for decision making. Thus, no hypotheses were set in the beginning, rendering the research inductive. Expert interviews (including the case company CEO’s) were carried out to determine various aspects of business for a startup in Silicon Valley. The interviews were used to support and augment the theoretical framework. Literature on the topic was scarcely available, which is why expert interviews were highly useful in determining the viable options for startups to enter Silicon Valley.
The research identified five viable options for internationalization, each with different levels of resource commitment required. Interestingly, for many options, incorporation was not seen to be required according to the interviews. It is clear that funding for internationalization is highly available from public funding sources in Finland. There is a clear quantifiable benefit of raising funding in Silicon Valley, as funding rounds there (Series A) were 23.2 % larger than in the Nordics.
As suggested by the interviews and field research, the competitive environment in Silicon Valley is difficult for any company. However, Silicon Valley is full of opportunities, likewise confirmed by the research: the funding and knowledge concentrated in the area is phenomenal. According to the availability of mainly time and capital resources, Witrafi may choose to pursue one of several market entry options, each with varying benefits and success factors. Nevertheless, the case company should carefully consider if it has the resources and whether there is a chance to succeed due to extreme competition. It should also be noted that market entry could also be done through another US city at first, or generally regarding internationalization, another country might be chosen to pursue a blue ocean market.
The thesis work consists of a theory review, data collection and subsequent analysis with recommendations made on how market entry could be pursued by the case company. The theory discusses funding options for a startup in addition to internationalization theories applicable to an early-stage company. The empirical part focuses on providing viable internationalization options for the case company, finishing with recommendations for Witrafi for various levels of resource commitment. The study involved both quantitative and qualitative methods. A qualitative exploratory research approach was used because the aim of the study was to provide additional information for decision making. Thus, no hypotheses were set in the beginning, rendering the research inductive. Expert interviews (including the case company CEO’s) were carried out to determine various aspects of business for a startup in Silicon Valley. The interviews were used to support and augment the theoretical framework. Literature on the topic was scarcely available, which is why expert interviews were highly useful in determining the viable options for startups to enter Silicon Valley.
The research identified five viable options for internationalization, each with different levels of resource commitment required. Interestingly, for many options, incorporation was not seen to be required according to the interviews. It is clear that funding for internationalization is highly available from public funding sources in Finland. There is a clear quantifiable benefit of raising funding in Silicon Valley, as funding rounds there (Series A) were 23.2 % larger than in the Nordics.
As suggested by the interviews and field research, the competitive environment in Silicon Valley is difficult for any company. However, Silicon Valley is full of opportunities, likewise confirmed by the research: the funding and knowledge concentrated in the area is phenomenal. According to the availability of mainly time and capital resources, Witrafi may choose to pursue one of several market entry options, each with varying benefits and success factors. Nevertheless, the case company should carefully consider if it has the resources and whether there is a chance to succeed due to extreme competition. It should also be noted that market entry could also be done through another US city at first, or generally regarding internationalization, another country might be chosen to pursue a blue ocean market.