Global Expansion: How British Startups Are Scaling In Offshore Markets

That is not to say, however, that there are not several global forces that began as UK start-ups. As such, it is important to better understand the key drivers and strategic steps that need to be taken in order for these start-ups to achieve international success. 

The Case for Global Push: A Two-Way Street

One driving force behind the UK start-up's global expansion lies in the sheer momentum offshore businesses are gaining within the country. For one, online gambling is strictly governed by GamStop, a regulatory requirement all online gambling operators need to abide by. This means each UK-based platform has a self-exclusion program that users can sign up for that prevents them from using gambling platforms for a specified period. 

Although this was set up with good intent and public health in mind, these sites are extremely limited, making for the perfect competitive environment. If you were to look at a 2025 list of the best online casinos in the UK, many of those options are going to be non-GamStop. Not only do players get access to thousands of real-money games, but they also get exclusive bonuses, higher limits, and flexible payment options with fast payouts. Of course, this is but one example of an industry that has brought its business to the UK's doorstep and, in turn, prompted retaliation. 

Market Saturation and Domestic Constraints

Another key driver behind this global scaling trend lies in how saturated and small the UK market is, especially for certain business types. HealthTech and FinTech are two good examples of some convoluted markets in the UK, making for a highly competitive sector. A good solution for this would be (say it with me) global expansion. Offshore markets offer a new location with a bigger demographic to target, offering untapped potential in terms of business growth. Realistically speaking, with over 69 million people residing in the UK, a FinTech company (for example) might only cater to a certain percentage of this population.

On a global scale, there are more than 8 billion people who could be potential customers for the product or service being sold. While no business will actually get 8 billion customers, catering to demographics on this scale opens up the potential of an extensive revenue stream and influx of customers. Beyond this, companies now also have access to global talent pools and can recruit great minds on an international scale. Some jurisdictions even offer a more favourable regulatory landscape that can reduce friction when it comes to setting up shop. 

Capital and Investor Pressure

Each start-up requires the presence of investors and VC (Venture Capital), which is provided to these businesses upon confirmation of expansion. Although some investors are only interested in local impact, larger investors (especially with tech start-ups) are looking for numbers and expansion. There not only needs to be a clear goal, action plan, and detailed roadmap in place, but also a projection of TAM (Total Addressable Market) on an international scale.

This is crucial for funding rounds, which can be thought of as investment tiers where investors will fund a business upon certain milestones being met. To meet the £15M+ funding rounds, for instance, a business would need to penetrate a high-yielding and rapid growth market such as the US or Germany to show results. 

Strategic Blueprint: The Scaling Playbook

Numerous steps need to be taken for a start-up to go global, and it starts with knowing where to expand to and when it is the right time to do so. For one, looking at the current market in other countries, local trends and behaviour, and in-demand products/services can provide valuable insight. If you were selling cryptocurrency, expansion may be a good decision as digital currencies are in high demand in various countries worldwide. GoCardless is a great example of this strategic planning phase, with the FinTech company making their move based on data obtained from other countries.

A second crucial point lies in the localisation of product or service offerings to mitigate the business being poorly received by consumers. Keep in mind, this is a new country, which increases the importance of deep market knowledge and the urgency of knowing the targeted audience very well. Hiring local staff, management, or partners can significantly help in creating a connection with this new, foreign customer base. In doing so, it can become that much easier to understand cultural nuance. Additionally, there is also the concern of carefully navigating local laws, tax structures, and other compliance requirements.

Lastly, there is always a need for a strategic approach when it comes to an operating model, and choosing the wrong one can be detrimental. An exporting or agent model is a very common approach with start-ups, as it is cheaper to begin with, but it means less control later down the line. Instead, a subsidiary or local entity can offer true security, control, and trust despite requiring much initial costs and admin to set up.

It is worth the effort as this local presence not only provides detailed insight into cultural nuances and consumer patterns but also builds trust in the brand name. Even in the digital age, many are sceptical of companies that do not have a physical presence, especially with older demographics. 

Conclusion: The Future is Global

Ultimately, expansion is no easy feat, and many start-ups will (and have already) encountered pitfalls with compliance complexity, investor risk, and cultural mistakes. The goal is to fully understand the target market before even beginning to engage with it, and ensure a tailored approach all the way. In conclusion, the UK may have start-ups struggling to expand, but the country is known for its ability to scale beyond its borders (and find success within others).