The days of “Made in America” being plastered on most things we purchased are long behind us.
It’s true, globalization forever altered the way business is conducted.
But while there are some who lament the altered landscape and the manufacturing power being largely stripped from the U.S., there are others with a deeper understanding of the impact of globalization.
Suffice to say, while there may be a tradeoff in terms of production, those losses are more than offset by the gains in brainpower and the overall talent pool.
And savvy startups are more than taking advantage of this new normal, as they’re increasingly turning to a global workforce to help fill out their organizational structure.
All things considered, the past decade has seen the gradual phasing out of the Silicon Valley-centric startup mentality and ushered in a new era where borders are nothing other than formalities.
With the onset of the pandemic in 2020, those previous boundaries disappeared even further, as geographic presence became less important than a stable internet connection.
Another aid in the transition to a more global startup perspective has to do with 2021’s macroeconomic downturn.
Where the landscape for startup investing was akin to the wild west in the early stages of the pandemic, the coffers began to dry last year and hotly-contested investment rounds became few and far between as venture capitalists grew more risk averse.
This, in turn, shifted early-stage companies’ priorities away from lofty long-term goals and toward a more profit-focused operation. With runway and bottom lines thrust into the forefront, cost-cutting measures were more often adopted.
All of this combines to make outsourcing a more common endeavor in the world of startups, as talent commensurate with U.S. workers can be secured for substantially less.
But perhaps even more impactful is the diversity of opinion these hires provide, as a startup with a more global talent pool is inherently more plugged into the world’s economy and demands.
As proof, companies with diverse teams are 35% more likely to perform better and 70% more likely to capture new markets.
In the world of startups, that sort of growth is part and parcel to success.
While you might not be able to invest in startups founded and operating outside of America, you can certainly benefit from the wealth of knowledge and talent that finds its ways into American organizations.
It’s just one more thing to keep an eye on as you consider your next crowdfunding investment.
Globalization is here to stay. You’re better off using it to your advantage.