Fundraising strategies for early internationalizing startups. The dual model approach

Employing qualitative case study methods, this chapter investigates the influence of financing strategies on the international approach of a specific subset of early internationalizing European new ventures. Results show how the limited access to financial resources in the home country could be a triggering factor for startups to adopt an early internationalization approach. Investigated startups typically move their headquarters to countries that have a more developed financial market with the goal of having access to capital, while maintaining a strong operational presence in the country of origin (dual model approach). Despite some limitations, the study sheds new light on the issues that European startups, aiming at internationalizing their business since inception, confront regarding scaling-up in their home countries due to the lack of adequate domestic funding. It also identifies a novel international development path that European startups follow to address the obstacles preventing them from growing rapidly in their home country.