Section 13: International Expansion & Alliances

Overview

Scaling beyond your home country opens new revenue streams, partners, and talent—but it also introduces regulatory, cultural, and operational complexity. This section helps spacetech founders navigate global markets, form smart alliances, and remain compliant while expanding internationally.

Part 1: Export Readiness & Trade Compliance

Why It Matters: Cross-border collaboration can trigger export controls and licensing requirements.

You Are Building Dual-Use or Military-Grade Technology

SpaceTech companies often deal in technologies that are regulated under national security laws — e.g., satellite components, propulsion systems, imaging sensors, AI navigation software.

• In the U.S., this may trigger ITAR or EAR regulations.

• In Canada, it falls under the Controlled Goods Program (CGP).

• In the EU/UK, dual-use regulations apply to satellite, avionics, and crypto-tech.

🔒 Why it matters:
If you export without the proper license, you could face millions in fines, criminal prosecution, loss of contracts, or be blacklisted from defense and aerospace partnerships.

You're Seeking Investment or Government Contracts

Whether you’re raising from U.S. VCs or bidding on Canadian, EU, or DoD contracts — your investors or procurement officers will want to know:

"Is this company compliant with export laws?"

📈 Why it matters:

• Lack of compliance can kill a deal.

• Investors expect a plan for international scale.

• Strategic primes (e.g., Airbus, Lockheed, Thales) cannot partner unless you’re export-cleared.
  You Want to Sell or Partner Internationally

To grow, SpaceTech companies often:

• Sell to international customers (e.g., government space agencies, defense primes).

• Join global supply chains (e.g., satellite bus from the EU, payload from Canada, launch from the U.S.).

• Raise capital or form JVs with foreign investors.

📍 Why it matters:
Each country has different licensing thresholds, red flags, and end-user restrictions. Export Pathway Maps help founders understand:

• Where they can sell without a license.

• When they must engage regulators.

• How to pre-clear partnerships and IP transfers.

  
  Tools:

  Export Pathway Maps

• Export Controls Interactive Tool (USA)

• Canada Export Controls Handbook (Canada)

• Access2Markets & Dual-Use Controls (EU)

• Australian Defence Export Controls (Australia)

• UK Strategic Export Controls Checker (UK)
  

Controlled Goods Screening Worksheet (Canada)

• Controlled Goods Program (CGP) Guide

• Controlled Goods List (Schedule)

Export Control Directory with Country Contacts & Tools

• BIS Country Chart (ECCN & license requirements) (USA)

• Export Controls Division (contact & support) (Canada)

• Dual-use Export Control Contacts by Member State (EU)

• Export Controls & Contact (Department of Defence) (Australia)

• UK Export Control Joint Unit (UK)

Part 2: Prioritizing International Markets

Tool: Market Entry Scoring Matrix

Country/Region | Strategic Fit | Regulatory Simplicity| Talent Access | Partner Ecosystem | Score

Goal: Rank top 3 allied markets (e.g. U.S., UK, AUS, EU, Japan) for short-term entry. Evaluate based on size of opportunity and ease of engagement.

Part 3: Alliance & Partnership Development

Purpose: Build trusted international partnerships with primes, governments, and in-market operators.

Framework: Alliance Opportunity Canvas

• Target Partner:

• Shared Objectives:

• Complementary Capabilities:

• Trust Building Plan:

• Integration Path:

Tactics:

• Leverage existing trade missions or embassy programs

• Co-apply to international space grants (e.g. ESA, CSA-UK bilateral)

• Offer co-marketing, joint GTM, or co-development pilots

Part 4: Structuring International Subsidiaries

Purpose: Choose the right legal and operational structure when expanding abroad—and understand how entity choice affects your access to government grants, R&D incentives, and procurement eligibility.

Tool: Entity Type Comparison Table

Tips:

• Use a U.S. or UK entity to access local grants and national security contracts

• Consider IP centralization in Canada or Ireland for favorable tax and compliance regimes

• Align legal + accounting teams early to evaluate how entity choice impacts grant eligibility, tax credits, and equity structures

Part 5: Localizing GTM & Talent Strategy

Why It Matters: What works in Canada may fall flat in the EU or APAC. Failing to localize can result in lost deals or failed pilot deployments. For example, a U.S. spacetech company struggled to sell in Japan after ignoring local procurement norms and presenting a deck with untranslated technical documentation. Conversely, a Dutch startup won a major Australian contract after recruiting a local advisor to align its go-to-market language and regulatory approach.

Tool: Global Talent Partner Tracker (Freelancers, Recruiters, Advisors)

• Recommended roles for spacetech expansion:

  • Orbital operations business development (BD) representatives

  • Export control and trade compliance advisors (local jurisdiction)

  • Space law and regulatory counsel

  • Regional pitch and fundraising consultants

  • Localized marketing and GTM strategists

  • Bilingual technical recruiters

  • In-country grant application specialists (e.g., CSA, ESA, Innovate UK)

Example: A Canadian startup entering the UK market hired a local BD lead and secured a bilateral CSA-UK R&D grant within 6 months by tailoring their deck and team.

Part 6: Managing Risk in Cross-Border Partnerships

Risks to Mitigate:

• Dual-use reclassification

• Data sovereignty conflicts

• Intellectual property leakage

• Political or economic volatility

Tool: Global Risk Radar

Strategy: Create a “trust stack” with every partner—legal, operational, and interpersonal.

Example: A startup working with an EU satellite imagery partner added contractual restrictions on downstream re-use, paired with watermarking and usage logs to protect sensitive applications.

Case Study: A Canadian spacetech startup partnered with a U.S. propulsion vendor for an in-orbit testbed. Midway through the agreement, new export controls affected the transborder movement of propulsion components. The startup worked with Canadian and U.S. legal advisors to secure an emergency temporary license while simultaneously restructuring the collaboration to use a neutral third-party testbed in the EU. As a result, they preserved schedule integrity and de-risked the partnership long-term.

Additional Tools SpaceTech Startups May Need:

1. U.S. ITAR & EAR Compliance Tools (e.g., BIS Export Control Classification Tool):
   For U.S. exporters of spacecraft, satellite components, software, or sensitive tech.

2. Canadian Controlled Goods Program (CGP):
   If operating in or exporting from Canada, CGP registration is mandatory for many space components.

3. EU Dual-Use Regulation Database
   Needed to check if your tech is on the EU’s dual-use list.