Three questions for a TMT expert
Gilles Rigal, Partner at Apax Partners, responsible for investments in the TMT sector.
What are the challenges of international growth for the development of TMT companies?
New technologies are global by nature. If you want to stay in the race, it is crucial to have an international vision. This was shown at the latest edition of the Las Vegas CES, which brought together thousands of start-ups from all over the world. In the hi-tech products industry, investments in R&D are huge, so businesses need to aim at a large market if they are to recoup them. Yet few local markets are large enough to forego an international dimension. The only exception is the United States.
Do you favour external or organic growth strategies?
Today, the best growth model for me is one that combines organic growth and strategic acquisitions. This calls for the risk to be properly understood and weighed up, without underestimating the synergies thinking it will be easy.
Is there any country that is especially important for new technologies?
The US, no question! The hotbed of technology that is Silicon Valley and the east coast is unrivalled. Companies have to have a presence in the US, but it is difficult. The Americans are accomplished and innovative and they dominate the market. Competition is fierce.