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Why UK startups should stop trying to be US startups

by Tim Morgan on September 9, 2011

Yesterday morning Dave McClure came to our office and was asked to give a talk to the startups based here. I’m very glad he came. He was helpful, intelligent and uplifting.

One of the questions he was asked was how UK startups could be more like US startups and therefore become global tech companies.

Bear with me a moment but this is one of my favourite bands from when I was growing up:

They are called Tigertailz and are from the same part of Wales as me. Notice the high kicks, the pyrotechnics, the big hair and the guitar swings. As good as they were, what they were really trying to be was this:

And lets face it, its hard to out Motley Crue Motley Crue. My point here is that they were a Welsh version of the West Coast glam rock scene and that means they were never going to be as successful as West Coast glam rock versions of the West Coast glam rock scene.

Now look at this lot. I don’t believe any city other than Liverpool could have produced them, let alone another country. They didn’t set out to be a global phenomena, they’d have been happy to get a round of applause at the Bootle Fete. They became global by being themselves and starting locally:

Why am I banging on about musicians on a blog about football and technology? Because yesterday Dave McClure was asked what UK tech companies should do to be more like Silicon Valley and therefore Global tech companies. I don’t think they should try at all and judging by his reaction I think Dave agreed with me.

Language is the biggest tell-tale sign here of whether a UK startup is speaking in its own voice rather than someone else’s. Dave was asked whether UK startups should use American spelling, (eg “color” instead of “colour”) in order to appear to be a global company. Dave responded by saying that if a UK startup wanted to be a global company its copy should probably be written in Mandarin Chinese, Spanish or Arabic. I think his point was – why would you do that? What is more global about writing copy in American English than writing it in English?

Another example that I notice – people in the UK tech scene often refer to some “really smart guy” they know. What they normally mean by this is “I know someone that reminds me of a Silicon Valley entrepreneur, he dresses like one, he sounds like one and he acts like one”. Whats toxic is that this then becomes a self-fulfilling prophecy, teams get funding because they look/sound the part. This means that there are more teams that succeed that fit the stereoype and on we go creating Tigertailz instead of the Beatles.

How many times do you see a European tech entrepreneur take the stage at a conference and you feel like you’ve seen him somewhere before? The jeans and tee, the strange accent that is a bit European and a bit American, and then the question from the audience (assume an English audience in England here):

  1. [insert name], how do you hire smart people? (in England “smart” means well dressed, the questioner means “clever” or intelligent)
  2. [insert name], I guess you’re happy now you’re successful? (in England “I guess” doesn’t really exist, the questioner means “I assume”)
  3. [insert name], you’re company is awesome (“brill” “fab”, I’d even take “cool” but come on who in the UK would have grown up describing something as “awesome” with a straight face?).

I’m not criticising people that speak like this and I realise that language evolves all the time and people’s influences come from all over the world – we rightly live in a global community. Indeed I use this language myself but that’s just the point, because Silicon Valley concentrated on being itself, it became a scene that was exportable. If Silicon Valley had tried to adapt how it spoke in order to enter European markets it would have been less successful – what we love about it is that it has its own tone of voice, and that’s what makes it special and cool.

The reason the UK tech scene is failing to be like Silicon Valley is because its trying to be like Silicon Valley. To succeed UK tech companies must find the rich vein that defines the area that they are in or defines them as individuals. The thing that makes them interesting. It might be a genre, a technology, a specific problem that needs solving in their lives, a cultural phenomena (for ages SMSing was not popular in the US) or a style. They must find this and export it to the rest of the world. That’s what Facebook did, that’s what Guinness did, that’s what the Beatles did, that’s what Chanel did and that’s what Ferrari did.

So don’t be like a Silicon Valley clone in the name of becoming a Global Tech company, be yourself – thats whats really cool (NB I stole this last line from the American film, “Starsky and Hutch” – oh the irony).

Caveats:

  1. I do realise that some companies are local by definition, I am not talking about these. I’m talking about companies with global potential that change their tone of voice to reach that potential;
  2. its fine to be like a Silicon Valley company if that’s what your DNA is. You might be an American entrepreneur based in London for example;
  3. I realise that you could base a startup aimed at one geo-location in another geo-location. A friend of mine’s dad writes for a Turkish newspaper from London, he obviously writes it in Turkish. So its fine to sound like a Silicon Valley startup if that’s the market you’re gunning for but then be prepared to compete with other Silicon Valley focused tech companies notably those in Silicon Valley. NB they will probably have more money than you;
  4. I realise that you might not know what audience you’re going after when you start out. If your influences are the West Coast tech scene then so be it, that’s not what I’m talking about here;
  5. Once you start growing, you might need to change your tone of voice to enter a specific market. That’s okay, just don’t do it from the offset because you feel like you can’t be yourself and succeed.
  • http://www.andrew-crump.co.uk Andrew Crump

    Agreed, although I am a CEO and not a MD :-p

    Apart from, ‘The reason the UK tech scene is failing to be like Silicon Valley is because its trying to be like Silicon Valley’ is probably not true. The main reasons are the lack of early stage funding and a culture that does not like to take many risks. Unless there is positive government intervention (i.e. Israel) capital markets seem to develop top down and the UK hasn’t got to the bottom (seed) yet. 

    We were actually talking about this an an informal mobile CEO meetup recently – we are going to start comparing ourselves to our UK counterparts in press releases etc (eg. Bluefields is like Kliqed but for football) rather than focusing on US comparisons. 

    Nice article though. 

    • http://techarda.com sanjay hora

      It’s interesting that people from so many countries speak the same language when it comes down to early stage funding. I relocated back from London to India few years back and I see the same apathy towards startups who refuse to follow the norm (replicating the model which has worked in US, you can see that by checking out how many Groupon clones got funded despite being no biz model at all). Where as “doing something different” is taken as a positive sign in valley, in other parts it’s seen to be too risky to even consider for funding. 

      • http://twitter.com/thetimmorgan Tim Morgan

        Totally agree Sanjay. To continue the music analogy, its like
        investing in JLS and then wondering why they’re not the Jackson 5. 

  • http://blog.ssims.co.uk Stewart Sims

    I fully agree with the sentiments of this article. I think that the whole interpretation of ‘startup’ that people now see and aspire to is one that is thinking so comfortably within the confines of those successful and ‘awesome’ companies that have succeeded. 

    I think we need to think outside of the box here in the UK and inject some of our own culture into these types of organisations. I think a good start is not confusing startup companies with projects. One of my projects meetingShed, I hope carries this off.

    It is obvious to me that the successful non-US based startups have an approach very much aligned with their country’s culture. For example those in Scandinavian countries have a certain look and feel to them, which varies between even those countries. 

    And we also need to not be afraid of more traditional business models and marketing, like actually sending literature out to potential customers, meeting with them and consulting with them so we can building products they actually need.

    I actually really do not want to see UK startups all going down the route of trying to secure investment from venture capitalists (or ‘VCs’). It builds up a sense of false value. We live in a culture here where we people want to take risks on businesses until they actually start making real money, and I that’s something I actually like about the difference between here and the US.

  • http://blog.ssims.co.uk Stewart Sims

    I fully agree with the sentiments of this article. I think that the whole interpretation of ‘startup’ that people now see and aspire to is one that is thinking so comfortably within the confines of those successful and ‘awesome’ companies that have succeeded. 

    I think we need to think outside of the box here in the UK and inject some of our own culture into these types of organisations. I think a good start is not confusing startup companies with projects. One of my projects meetingShed, I hope carries this off.

    It is obvious to me that the successful non-US based startups have an approach very much aligned with their country’s culture. For example those in Scandinavian countries have a certain look and feel to them, which varies between even those countries. 

    And we also need to not be afraid of more traditional business models and marketing, like actually sending literature out to potential customers, meeting with them and consulting with them so we can building products they actually need.

    I actually really do not want to see UK startups all going down the route of trying to secure investment from venture capitalists (or ‘VCs’). It builds up a sense of false value. We live in a culture here where we people want to take risks on businesses until they actually start making real money, and I that’s something I actually like about the difference between here and the US.

  • http://blog.ssims.co.uk Stewart Sims

    I fully agree with the sentiments of this article. I think that the whole interpretation of ‘startup’ that people now see and aspire to is one that is thinking so comfortably within the confines of those successful and ‘awesome’ companies that have succeeded. 

    I think we need to think outside of the box here in the UK and inject some of our own culture into these types of organisations. I think a good start is not confusing startup companies with projects. One of my projects meetingShed, I hope carries this off.

    It is obvious to me that the successful non-US based startups have an approach very much aligned with their country’s culture. For example those in Scandinavian countries have a certain look and feel to them, which varies between even those countries. 

    And we also need to not be afraid of more traditional business models and marketing, like actually sending literature out to potential customers, meeting with them and consulting with them so we can building products they actually need.

    I actually really do not want to see UK startups all going down the route of trying to secure investment from venture capitalists (or ‘VCs’). It builds up a sense of false value. We live in a culture here where we people want to take risks on businesses until they actually start making real money, and I that’s something I actually like about the difference between here and the US.

  • http://hrishimittal.com/ Hrishi Mittal

    The Welsh band analogy reminded me of this gem - http://www.youtube.com/watch?v=kRqns2xtTYc

    • http://twitter.com/thetimmorgan Tim Morgan

      Ha ha thanks Hrishi – one of my all time favourites. A scandal when the record company pulled it from YouTube for a while. Thankfully back up now.

  • James Devonport Wood

    Agreed!

  • http://www.facebook.com/profile.php?id=61309259 Fred Stevens-Smith

    I think your hypothesis assumes that there is a high correlation between homogeneity and location. I don’t think this is true.

    The recent debate about US vs UK / EU blablabla has been largely to do with capital. Access to capital, risk-aversion of those holding capital, scarce capital etc. I don’t think it’s a cultural thing. Silicon Valley only has a ‘culture’ in so far as there is a massive concentration of startups and funding for startups in one location. The same argument could be made – albeit on a far smaller scale – for Silicon Roundabout in London, Silicon Allee in Berlin, etc etc.

    Startups and entrepreneurs follow trends coming out of Silicon Valley simply because it’s the leading player. This is distinct from having a global outlook, which was a point Dave made at Seedcamp this week, which sounds somewhat similar to the point you reference; his point was that startups shouldn’t simply relocate by default to SV once they hit a certain level of traction… it was more that they should go where their market is. And in many cases now, that is not the US, and therefore being in SV does not serve the purposes of the startup as it once did. 

  • http://twitter.com/annejohn Anne Johnson

    Let’s try this another way : the market for ideas and startups to implement them is global. The UK market is comparatively small – the adjacent European market is fragmented by language/tax/law/currency. The US market, and specifically Silicon Valley, has 50 years of experience at selling into and buying from much bigger markets, including China and India (look at how many people from there, or with parents from those countries, live in the Valley). The Valley speaks (American) English, among other things. It’s by far the easiest stepping stone to the global market. You don’t have to move the whole company here – but having a sales and marketing presence here tightly coupled to the UK product management and developers will make scaling up and long term success much more likely.

    • Tim Morgan

      I agree with most of what you say Anne except that I think its the
      “market opportunity” that is global. The market for most startup ideas
      (at the point they start up) is normally very small. For example at
      Facebook, it was just Harvard students. If you dont get this right then
      you dont become global. The UK market is easily big enough for a startup
      to get traction and later become global.

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  • jedd

    In England, “you’re company is awesome” doesn’t make sense, as it reads “you are company is awesome”.

    On reflection I think the same thing applies with North American English too.

    • http://twitter.com/thetimmorgan Tim Morgan

      Proof that you can use any old language you like and everyone will still understand what you mean.

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