Arab Press

بالشعب و للشعب
Saturday, Feb 22, 2025

Right company, wrong place: why I moved my startup from Prague to Amsterdam

Right company, wrong place: why I moved my startup from Prague to Amsterdam

This Prague-founded startup didn't find the funding or the momentum it wanted until it moved HQ to Amsterdam. They've never looked back.

Most founders will agree that timing can be everything when it comes to business success. What fewer people talk about is how crucial location can be. Not every business idea is born in the right market. And while you can’t win if your business isn’t born at the right time (I’m looking at you, pre-Google search engines), you can control where you are based.

In April 2013, I accepted Richard Valtr’s offer to join his startup, Mews. We were building a cloud-based property management system to run hotel operations, booking, payments and guest management, and given my decade of experience at various hotels, I thought we had something special on our hands. But for three years, we couldn’t pick up momentum, and it began to grate on the team. We couldn’t raise the money to grow, and we couldn’t grow enough to widen our pool of potential investors.

And so, five years ago, we moved Mews from Prague to Amsterdam — and haven’t looked back. We were just in the wrong location to make our company a success.

Here are my takeaways from moving Mews to the Netherlands, and some food for thought for founders who think they might have the right company in the wrong place.

Our culture clashed with local investors


In 2013, we began the process of raising seed funding for Mews. After three years, we had a couple of term sheets from Czech VCs. However, at that point in time, the Czech market wasn’t ready for the cloud and the level of automation we were working on. Western Europe has long been ahead of Central and Eastern Europe on this front — an issue that leaves many promising startups in the lurch.

Czech VCs were looking for B2C startups that could reach hypergrowth quickly, as opposed to B2B investments such as Mews. Our key focus at the time was to continue building the product. The terms we were offered weren’t agreeable, particularly on minority protection rights.

Most of our customers were based in Prague, but our plan was always to build a global company


The Netherlands has been a far better fit in terms of investors. The country is a haven for cloud and payments companies, so investors know the landscape well and aren’t so laser-focused on revenue in early-stage companies. As the market is quite developed, Dutch VCs are more confident in valuing potential in complex technology.

Our customers called us home


At this point in Mews’ journey, we had around 40 customers and £30k-40k monthly revenue. Most of our customers were based in Prague, but our plan was always to build a global company.

About a third of our customers were located in the Netherlands, and they were our most supportive. As a customer-centric business, it made sense for us to be close to a community that “got” the product and wanted to help us make it even better.

It’s time to lower the barrier to startup success


Moving a startup across borders is painful. It was necessary for us to sell our own intellectual property to our new entity in Amsterdam — but after that, our most important big-budget expense was our lawyers. Attempting to draft your own agreements will waste more time and money than it saves (I’ve tried) — but a legal professional with expertise in tech and intellectual property will make a move easier.

The Western European startup ecosystem should do more to support early-stage tech businesses in underrepresented regions.

The longer you wait to move to a new country, the more complex and costly it becomes


Social media has no borders — and for founders who are considering moving abroad, it’s a great place to test the waters. I’ve been active on LinkedIn throughout my career, and found that it pays to play the long game. By the time Mews actually landed in Amsterdam, I’d made local connections who helped us hit the ground running, pointing us towards potential customers and employees in the Netherlands.

Always look ahead


The longer you wait to move to a new country, the more complex and costly it becomes. With just a few employees and an early iteration of our product, we had little to lose.

Now we’re on to the next stage: talent-first, location-second. That means being a fully distributed company that hires talent anywhere in the world. This year, we committed to becoming a fully distributed, global company. And while location is becoming less important the more we scale, it was key to get it right in our earliest days. I’d challenge more early-stage founders to ask themselves the question too: am I the right company in the wrong place?

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advance.
Israeli Minister Urges Hamas to Surrender and Depart from Gaza.
Iran Considers Moving Its Capital Due to Urban Difficulties
Israel and Hamas Finalize Sixth Exchange of Hostages and Prisoners During Continuing Gaza Ceasefire
Leaders of BRICS to Gather in Rio de Janeiro for July Summit
Muhsin Hendricks, a trailblazing openly gay imam, was killed in South Africa.
Trump's special envoy for hostage affairs cautions Hamas against challenging Trump before Saturday's deadline.
Two British citizens apprehended in Iran amid escalating tensions.
Israel Issues Threat of Military Action as Hostage Negotiations with Hamas Continue
Hamas Coordinates Worldwide Solidarity Marches in Reaction to U.S. and Israeli Initiative
Israel Warns of Ending Gaza Ceasefire Due to Hostage Situation
King Abdullah II Dismisses US Proposal to Relocate Palestinians, Commits to Welcoming Gaza Children.
Lebanon Installs New Government with Hezbollah's Impact on Key Ministries
Report: Iran Attempted to Assassinate Trump During Election Campaign
U.S. Authorizes $7.4 Billion Arms Sale to Israel
Iran's Supreme Leader Rejects Nuclear Negotiations with the U.S.
UN Chief Denounces Trump's Gaza Plan, Cautions Against Ethnic Cleansing
Pressure Intensifies for a Free Trade Agreement between the UK and GCC in Light of Economic Difficulties
Israel to Withdraw from UN Human Rights Council Due to Accusations of Anti-Semitism
EU Reaffirms Gaza's Essential Role in Future Palestinian State Following Trump's Proposal
Iranian Currency Reaches All-Time Low Amid US 'Maximum Pressure' Initiative.
UN Reaffirms Ban on Deportation from Occupied Territories Amid US Gaza Proposal
Palestinians Fear Repeat of 'Nakba' Amid Ongoing Crisis in Gaza
UAE Aids in the Exchange of 300 Prisoners Between Russia and Ukraine
Egypt Seeks Global Backing for Two-State Solution Following US Proposal for Gaza Plan
Trump's Suggestion to 'Seize Control' of Gaza Represents a Significant Shift in US Policy
French President is the first EU leader to extend congratulations to the new Syrian President.
Tunisian President Appoints New Finance Minister Amid Economic Crisis
Trump Suggests U.S. 'Takeover' of Gaza, Prompting Global Worries
Trump's Proposal for Gaza Provokes Global Debate
President Trump Suggests Moving Gaza's Palestinian Population
Aga Khan IV, Spiritual Leader and Philanthropist, Dies at 88
Erdogan and Syria's Sharaa Talk About Collaboration to Counter Kurdish Militants
Trump Suggests U.S. Control of Gaza Strip Amid Ongoing Conflict
Trump Resumes 'Maximum Pressure' Strategy to Limit Iran's Oil Exports.
Ex-British Soldier Sentenced for Espionage on Behalf of Iran and Fleeing from Prison
Gazans in Egypt Reject Displacement, Struggle with Return to War-Torn Home
Queen Rania Urges Protection of Children’s Rights at Vatican Summit
Hamas Officials Ready to Begin Negotiations for Phase Two of Gaza Truce
Trump Expresses Caution Over Gaza Ceasefire as Netanyahu Visits Washington
Oman to Host 18th Indian Ocean Conference on Maritime Security and Trade
Emir of Kuwait Meets BlackRock CEO for Talks on Investment Opportunities
Queen Rania of Jordan Calls for Global Action on Children’s Rights at Vatican Summit
Egyptian President El-Sisi Invited for White House Meeting Following Jordanian King’s Visit
Queen Rania Calls for Protection of Children’s Rights at Vatican Summit
Israeli Military Operations Continue on Lebanon Border Amid Ceasefire Tensions
Israeli Hostage's Release Highlights Uncertainty Over Family's Fate
Israeli Military Operations Escalate in Southern Lebanon Amid Hezbollah Tensions
Zayed Award for Human Fraternity Announces 2025 Honorees
Kuwait Anticipates a 12% Increase in Budget Deficit for the 2025-2026 Fiscal Year
×