Exporting to Survive

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Wooing a foreign partner often requires time and patience — two commodities in short supply among start-up execs. They typically have to discuss terms with representatives of various departments of a foreign organization. Little can be done without the help of a law firm that understands the local business customs — like meeting etiquette — that can baffle an American. Just ask Domenikos. During his discussions with NTT, it was not uncommon for the firm's high-ranking executives to nap around the boardroom table, leaving underlings to flesh out the deal's specifics, from the budget to the duration of the contract. Cross-border deals are also riskier. "A deal isn't a deal until money changes hands," Domenikos says.

U.S. firms often must adapt their products to local needs. Telegea, for example, developed its technology to support Asian languages. And it's always a good idea to protect your intellectual property from pirates by filing for international patents.

Despite the obstacles, many telecom start-ups are glad they went global early. "We've won wider recognition for our technology, diversified our revenue base and attracted a wider range of investors by venturing abroad," says Domenikos. Even amid the technology slump, Telegea has been able to raise $42 million from investors, including Investor AB, a Swedish industrial holding company, and Nissho Iwai, the Japanese electronics conglomerate. Next year Telegea will begin selling its software through a distribution agreement with Lucinski, a systems integrator in Brazil. "None of our growth would have happened if we took a parochial view of the world," says Domenikos. "We'd probably just be struggling to survive."