🌎 Going Global
Contentsquare & the Definitive Playbook on Internationalization for French Tech
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New York and Paris have a history of cultural exchange and overlap. Relationships forged from rich literary, arts and theater scenes have in some ways helped pave the way for meaningful collaboration in business. For countries around the world, building a customer base in the US is often a long-term target, but every path is different.
Today, I want to walk through the considerations one must make when exporting their product abroad and there is no better company to serve as our trusted roadmap than Contentsquare.
The Cherki Ratio➗
Silicon Valley's Ultimate Exit 🛣
Navigating the Tech Backwaters 🧭
HQ2 🗽
Giving Back (to French Tech) 🎁
The World is your Huitre 🦪
The Cherki Ratio ➗
There was one thing that stood out to me most in my research for this piece. It was something I have heard before in passing, but never quite articulated in a meaningful way. It's a term I will coin The Cherki Ratio (named for Jonathan Cherki, Founder & CEO of Contentsquare). It's not revolutionary in and of itself, but it gives a glimpse into the thought process of a CEO representing a burgeoning startup scene on the global stage. The ratio relates to software engineering in a global economy. Qualitatively, the equation states that given equal quality of talent the long-term value you derive from an engineer depends on both price (wages) and loyalty (employee retention). Cherki posits that France has incredible engineering talent, but with lower average salaries (compared to the US) and significantly higher loyalty, there is no question whether he would maintain his core R&D in his home country.
It's a relatively simple equation as far as modeling goes, but it has a big impact on corporate philosophy, strategic decision making and organizational structure. And as we'll see it plays into the international expansion strategy at Contentsquare. Building a company is hard. Scaling it even harder. Replicating that success abroad? The odds are stacked against you. With guiding principles, clear vision and handy heuristics like the Cherki Ratio, we'll see how to make an insurmountable challenge a bit more palatable.
Silicon Valley's Ultimate Exit 🛣
There was a time when Silicon Valley was the place you had to be, physically, to partake in the software boom. For all intents and purposes, it still serves as the ideological hub for the tech industry. But thanks to the very technology that was dreamed up by the region's most innovative minds, the need to be located in the Bay Area to capitalize on this opportunity is diminishing. It's true that a large proportion of money, talent and culture remains in northern California, but for over a decade there has been a shift towards decentralization that has turned Silicon Valley into more of an ideology than a single point on the map. I'll admit that the Bay Area does still have a palpable energy to it along with such a high density of smart, creative people, but inevitably the power structures and distribution of talent are going to shift in a post-covid, highly remote workforce. One of the most compelling takes on this subject is from Balaji Srinivasan in his 2013 piece titled Software is Reorganizing the World (you can also watch his presentation at Y-combinator's startup school from the same year if you're more of a visual learner).
In the long run, he argues we will live in a borderless society and that tech hubs themselves may declare sovereignty or build new age cities from scratch. In the meantime, however, existing cities see an opportunity to create an economic driver for growth by launching their very own technology hubs. To build their brand, cities had to get creative. For the most part, they took inspiration from the original: quite literally using some play on words with "silicon" or "valley" to varying degrees of success.
This naming convention wasn't limited to the US; in fact, it took hold around the globe. There's a laughably comprehensive list on Wikipedia. In an industry known for innovation, you'd think we could come up with some better "spin-offs" — but I digress.
Today, we are going to talk about two of these hubs and the unofficial playbook for expanding from one to the other. I am of course talking about New York, affectionately known as Silicon Alley and Paris, which is rumored to be nicknamed Silicon Sentier (named for a central district of the city with a cluster of tech startups) although I've heard zero people refer to it as such. Perhaps by the end of this article we can come up with a better version.
Navigating the Tech Backwaters 🧭
The former Director of La French Tech, Kat Borlongan, referred to the French tech ecosystem in 2013 as a "backwater" where most investors were there for Fashion Week but had no intention of investing in startups.
She didn't mince her words, but looking back at that period, it's not entirely inaccurate. There are very few examples of successful software startups from France in that era, with the exception of two notable exits: Criteo (a display advertising company) and Business Objects (Enterprise Software & Business Intelligence). But these weren't exactly victories for French Tech and it's pursuit of digital sovereignty; the former listed publicly in the US on the NASDAQ while the latter was acquired by German software giant SAP. This is the backdrop when Contentsquare launched around 2012.
"Dreaming big wasn't allowed back then" — Victoire, Chief of Staff @ Contentsquare
Needless to say, there wasn't a ton of inspiration and certainly not a definitive roadmap for launching a tech company in France, let alone internationally. Elements native to Silicon Valley — vast network of founders and mentors, risk-seeking venture capitalists, top-tier talent in computer science — weren't fully formed yet, which meant oftentimes, there wasn't a reference point to inform your decisions. A fact that makes the rise and subsequent expansion of Contentsquare even more impressive.
Contentsquare is considered a Digital Experience Analytics (DXP) platform that helps businesses understand customer behavior across their digital footprint to unlock value that may otherwise go unnoticed. If you work in the tech sector, you're probably aware of the delicate relationship between user experience and intended outcomes; if not, you may be surprised to hear that sometimes the most subtle of design tweaks can lead to massive improvements in conversion rates, purchases, or customer experience. This is particularly interesting for marketing, design and e-Commerce teams building the touchpoints that serve as a first interaction with your brand. In short, every company is a data company, and Contentsquare enables anyone with a digital presence to track user behavior at scale across devices and attribute missed revenue opportunities to those insights. All of which can be visualized and viewed across teams and connected to other data sources and tools for "Voice of the Customer" research, web analytics, or personalization.
Following it's latest fundraising round it is valued at €2.5B. In less than a decade, they've also made 5 acquisitions, which have expanded their capabilities, addressable market and impacted, to a degree, their internationalization strategy.
While plenty has been written about the merits of Contentsquare's product and leadership, there is somewhat less coverage of their journey across the Atlantic Ocean which has proven wildly successful and may just be that first point of reference for other aspiring French founders looking at a similar trajectory.
To find out how they did it, I had to go directly to the source. Two key leaders at the company recounted their experiences to me. Both were closely involved in the scale up and internationalization process at Contentsquare.
HQ2 🗽
Shortly after joining my first startup in Paris, we decided to open an office in New York as our customer base began to expand in the US. At the time, I was leading the Customer Success team and was tasked, along with our General Manager on the ground in New York, with hiring and scaling the hub. At my second French tech startup, I was hired as the Head of International Expansion. My responsibilities included identifying customer acquisition opportunities around the globe and putting together a plan of action to penetrate high value markets and to land and expand recurring revenue business within each of them. At a small company, this typically requires a combination of inbound and outbound marketing tactics, translation & localization projects, and partnerships with complementary businesses that have operational leverage in the region. I'm not painting myself as an authority on international expansion; rather, I'm hoping that my experience lends me some credibility in stating just how impressive Contentsquare's execution was and continues to be in the US.
As it pertains to internationalization, I've come to identify three "legs of the stool" that are critical for a successful deployment. In my discussions with Victoire and Lucie, I got the impression that their strategy adhered closely to the model. Here they are:
Culture
Leadership: Vision & Consistency
Strong Product & Communication
Culture
Let's start with culture. Company culture can be elusive and mysterious, the ever sought-after x-factor that drives productivity, employee retention, and cohesion. Most successful companies have a well-defined and highly visible culture, oftentimes articulated in their founding story. But when it comes to expanding internationally, culture takes on new meaning. You're negotiating not only with the established corporate culture, but the culture of the country (or region) in which you operate. And it's exactly the fusion of these two strands of culture that takes place when you become an international transplant. You want to preserve the existing culture while allowing for the new hub to give it their own flavor. The last thing you want is a complete bifurcation.
Here are the factors that play into Contentsquare's success:
Send key executives to launch the new hub instead of hiring someone domestically to build it from scratch. In the case of Contentsquare, the CEO himself picked up and moved to NYC as did some of the very first employees, including one who went on to become the Chief Product Officer (Lucie).
Ensure new hires get a taste of the original culture. At Contentsquare, they have "Rocket Day" where each newbie goes to Paris for their onboarding & training.
Continue worldwide events to get cultural cross pollination. Sales Kickoffs, Team Seminars, major conferences are all good opportunities to build cultural bridges while accomplishing important work. Contentsquare has an annual kickoff where the 700+ employees get together in France.
Foster local culture. Contentsquare does this with what they call "culture crews" that have a budget to allocate towards hub events & activities
Leadership: Vision & Consistency
The term vision is tossed around quite frequently in tech, but you know it when you see it. Vision sets the tone for the entire organization and when supported with clear values, strong leadership and consistent execution, things tend to fall into place. In my conversations with both Lucie and Victoire, it was clear to me that this was the case with Jonathan Cherki, their CEO.
All the credit goes to Jonathan — he said we are going to be a worldwide leader in our category. It seemed doubtful at the time — but he had energy, a willingness to make things happen, and a big vision. If you want to be #1 you have to take risks, it's not the same game. He needed people around him that understood that and wanted the same thing.
— Lucie Buisson, Chief Product Officer @ Contentsquare
While many strive to maintain this standard, it's exceedingly difficult. Striking a balance between shooting for the moon while hitting your targets consistently are almost in direct conflict. It's common to meet CEOs with big ideas but absolutely no execution yet it's also possible not to dream big enough. In that case, you miss out on opportunities, lack inspiration or simply fall behind to competitors in your space. Executives like Marc Benioff of Salesforce (who we've discussed before) are renowned for keeping an eye on the future while hitting their targets quarter after quarter. When speaking with Victoire, Jonathan's Chief of Staff, she shared with me Salesforce is undoubtedly an inspiration. To be the best, you have to learn from the best. I was struck by the mounting similarities between the two.
Strong Product & Communication
Everyone knows you need to have a strong product. It's obvious. But what isn't so obvious is how to communicate effectively about your product. I'm not just talking about a clever marketing campaign or a handy onboarding guide. Communication needs to be considered for both internal and external stakeholders, it needs to be personalized depending on the audience, and it needs to be localized by region. It also needs to be updated regularly — especially if you are shipping new features on a regular basis.
A common concern I hear in France is around hesitancy to launch in the US too early. Mainly because it's costly, competitive and complex. But another factor here is apprehension around nailing communication. Americans tend to be marketing-minded and it would be a shame if a solid product went unnoticed due to a poorly adapted communication strategy. Contentsquare implemented a rather sound strategy: head to the UK first to learn about market specifics, adapt their processes and translate the product. It almost served as a practice match so when they did raise their Series A they were ready to hit the ground running in the US.
When your company reaches a certain size, you start to ask yourself: should I build that new feature or buy it? Contentsquare achieved this critical mass right around 2019 when they started to go on a buying spree to round out their product and accelerate their go to market strategy. But merging products and teams isn't always seamless and requires essentially the same approach to internationalization outlined above. The ability to source acquisitions that meet all of the criteria — quality product, alignment on vision, and strong leadership — is a superpower. It can also help with international expansion in the event you acquire a company in a new territory. Clicktale, for example, is based in Tel Aviv and has turned into their 2nd R&D hub (outside of Paris).
At the end of the day, the three legs of the stool behave sort of like a flywheel. Strong leadership breeds great company culture, and great company culture leads to a quality product. These three factors serve as a foundation for any decision you make at a growing startup. While Contentsquare may have defined one of the first playbooks for French tech international expansion, they certainly won't be the only one. But I can guarantee that those three key principles will be foundational to anyone else who tries.
Giving Back to French Tech 🎁
As French Tech startups grow and develop, so too does the richness of the ecosystem. A decade ago, successful, global founders from France were hard to come by. But today, the success stories of the first wave of French Tech are helping to mold the next generation. There are numerous ways to give back: donations, coaching/mentoring, investing. What Contentsquare has done is combine all three by building their incubator/accelerator program: Atomic Labs. In their case, the added bonus is that the companies they support typically help drive innovation in the markets they are already working in: Marketing Tech, Retail and Social Impact.
It's important to stay curious. You need both advice and the richness that comes from advising other people. Atomic Labs is meant to keep tabs on the future but also to give back. Coaching also helps you develop as a person.
— Lucie Buisson, Chief Product Officer @ Contentsquare
It's become common practice among the biggest tech companies to develop a venture arm: Salesforce, Microsoft, Google, Amazon, Intel all have developed programs to seed new startups in their respective industries. But beyond nurturing the industry, the true test of becoming a lasting player is to build a platform. Platform has become industry vernacular for product, but the real meaning is much more substantial. To become a platform company you need to develop an ecosystem of partners and applications around you. I've heard it said that to really merit the term "platform company" you have to develop an ecosystem worth more than the enterprise value of the company itself. Apple has the App Store, Salesforce has the AppExchange. Contentsquare appears to have a similar ambition, with a laundry list of developer and implementation partners to extend product capabilities and create custom solutions.
This approach is a strong signal that Contentsquare aims to be a lasting organization. They've already integrated themselves into the fabric of many of the biggest brands around the world and the ecosystem they have cultivated only strengthens their position. Their growth is certainly a leading indicator for the future of French tech: they've defined the international roadmap, invested in startups "back home," and fostered a whole industry to build on top of their offering. It remains to be seen who from France will emerge next on the international scene and if their strategy takes a page out of the Contentsquare playbook.
The World is Your Huître 🦪
In a globalized, internet-based economy, the opportunities are endless. Silicon Valley is in the cloud and the next big startup could emerge just as easily from a café in Paris as a garage in San Francisco. But that doesn't mean the road to getting there is clear. In France's growing tech scene, the examples are few and far between, but I'm confident that is going to change quickly. With a battle-hardened generation of entrepreneurs ready to help the incoming class of startups and a successful playbook for guidance, it's only a matter of time before we witness the next global company to come out of France.
Now if we could only come up with a clever nickname for France's tech ecosystem…
Silicon Seine 🏞
Silicon Vignoble 🍇
Silicon Station (F) 🚀
Sacré Silicon ⛪️
🧠 ⚡️ Let's start a brainstorm — this is urgent! ⤵️
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