With more than 2.5 million members in 390 cities across the globe, the Munich-based company InterNations the world's largest social network and information portal for everyone living and working abroad. We spoke with the founders about how they mastered their journey from a small Munich startup to such a major player in the expat market.
Please introduce yourselves briefly!
We founded the expat platform InterNations in Munich and are now active worldwide. Our website features forums, expert country guides, and regular contributions from guest authors about life abroad. In addition to our online presence, we organize around 5,000 events and activities around the world every month.
Our company founders, Malte Zeeck and Philip of Plato, met while studying business administration in Switzerland and had already toyed with the idea of founding their own company at some point. But after graduating from university, the two initially went in different directions: Philipp worked as a management consultant and Malte as a foreign correspondent for various news channels. During this time, both gained a lot of international experience - Malte Zeeck lived in Brazil and India, among other places, while Philipp von Plato worked in Great Britain and Croatia - and they realized how difficult it is to find your way around in a new country when you don't know anyone and don't speak the local language. These personal experiences gave rise to the idea for a network that would help people in the same situation support each other.
Our small startup has grown into a mature company over the past few years. Since its founding exactly ten years ago, our team has grown to more than 100 employees from 30 different countries. We are also supported by over 900 volunteer ambassadors who organize local events and serve as the first point of contact for new expats in the city, as well as nearly 5,000 consuls who offer all kinds of activities for our members, from language exchange and business networking to yoga and mountaineering. In a sense, we are living our own mission to make every stay abroad a great experience, even in our everyday work life!
“Flourishing tech and startup scene”
You have a presence in several hundred cities around the world. What makes Munich so special for you and why did you choose this location?
Munich is a city with an international flair, home to many large companies and startups, yet still maintains its own unique, relaxed charm. People from all over the world live here – many expats fall in love with this "global city with heart" during their stay and ultimately decide to stay. In addition to the excellent quality of life, Munich also has a thriving tech and startup scene, which is why we feel particularly at home here. Furthermore, the Munich job market is full of highly qualified professionals with international backgrounds: almost one in three residents has foreign roots. This has helped us build a motivated, international team who care just as much about InterNations' success as we do.
We are now represented in a total of 390 cities worldwide, but our headquarters and thus our home is, of course, here. Last but not least, Munich, with its 50,000 InterNations members, is our third-largest community, and this is where we test all our new event formats. Our Munich members are also usually the first to try out new features and, with their experiences, help us further improve our international offering.
Flat hierarchies: How karaoke & co. lead to success
What's the working atmosphere like at your company? And has it changed in the last ten years?
From the very beginning, we've placed great value on flat hierarchies. Even though our founders can no longer personally work with every employee or attend every meeting due to the company's size, we still ensure that every employee feels heard. Ultimately, the entire company benefits from an innovative and harmonious team that's passionate about what they do! That's why we organize outings and team events several times a year, where we enjoy things like curling, playing soccer, or singing karaoke.
Over the past ten years, InterNations has also become more professional. We used to have just three people at a table when we planned a new feature; now we have several teams involved: For example, our Product Team, which checks every new idea for feasibility; the Engineering Team implements it; and our Communications Department ensures everyone is informed about the new feature. Often, many other employees are involved, depending on the project. This is where our "Guiding Principles" help. These are basic behaviors we expect from every employee, such as "listen and say what you mean" or "embrace differences." They form the foundation of our corporate culture.
Payment model and the right investors
How do you approach financing, or how did you handle it from the beginning? How do you earn money? What is your business model?
First and foremost, we naturally sought out the right investors to turn our idea into reality. Holtzbrinck Ventures in Munich and the European Founders Fund were particularly supportive. Once our offering had become established among expats, we introduced various advertising formats for our corporate partners and a premium membership for members.
The basic membership is free and already offers many features, but with Premium access, our members can use all the platform's offerings without restrictions. For example, they have access to all local country and city guides, as well as to InterNations' more than 5,000 monthly activities. Especially in Munich, the selection is vast, and you're spoiled for choice every day as to how you'd like to spend your free time!
Meet the ravages of time
To be successful, a startup must…
...first identify a significant problem and offer an innovative and straightforward solution. If a business idea is in tune with the times, meaning it improves customers' lives in a certain way, it can become successful very quickly.
Especially in already saturated markets and fast-moving trends, you have to honestly ask yourself beforehand whether you can really offer something new – or a significantly better solution – and whether there's even a need for it. To answer this question, you need to know your target audience and the competition very well. After all, it makes no sense to launch a product that offers no added value or is only of interest to a very small target group. Consumer needs can also change unexpectedly or simply turn out differently than expected. So you always have to listen to your customers and remain flexible.
For example, at the beginning, we had no intention of holding regular events in our communities. Today, these are extremely popular and attract both existing and new members. In our larger communities, our events attract several hundred participants. We never would have expected that at the beginning! Minor setbacks can occur from time to time, but you shouldn't let them discourage you. Many situations can quickly turn into positives if you're willing to roll up your sleeves. A strong team is indispensable in such change processes! Thanks to our employees, we've already survived one or two challenges unscathed.
Not without proof of concept
What is the biggest mistake a startup can make?
Believing you know exactly what customers want and then launching without a proof of concept. Sometimes ideas you thought were particularly promising don't take off at all, and what was once considered a stopgap measure turns out to be a long shot! To avoid costly crashes during the founding phase, every startup should first test its concept with a small group of customers. To this day, we follow the same approach when we enter new business areas or develop features. For example, we regularly invite our Munich community members to user tests to find out whether the new app or the revised payment process is consistent and intuitive. We also initially make new services available only to a small group of users – our beta testers. Their feedback helps us perfect each new launch before rolling it out to our more than 2.5 million members around the world.
Startups are increasingly taking on more social responsibility
The trend of the year is…
Corporate Social Responsibility! Startups focusing on healthy nutrition or fair trade products have been around for some time now – but many new companies are now also addressing social issues, especially in their own backyards. For example, there are startups that help refugees find a home in shared apartments. Others have developed apps that help find out which donations are needed and where, or that inform refugees about the legal situation and local contacts. Thanks to these new offerings, people in difficult life situations can receive quick and uncomplicated support.
Our Changemakers Program has a similar approach. InterNations members can participate in Changemakers activities in their city and thereby support a good cause. The activities are organized by our Consuls and are incredibly diverse: We collect donations of money and goods, cook meals for the homeless, or help refugee children with their homework, to name just a few.
Giving something back to your new home
Being able to go abroad of your own free will comes with a certain standard of living, making it a great privilege. Our members know this and appreciate the opportunity to give something back to their new home – despite any language barriers or cultural differences! We currently offer Changemaker activities in 45 cities, and the number is growing every year! Each local group works with one or more non-profit organizations – Caritas, the Red Cross, Handicap International, and Make-A-Wish are just a few of the ones we support. This allows our members to offer help exactly where it's needed most in their city.
Here in Munich, we help out a lot at the Bayernkaserne, where refugees are housed, and we support people living with disabilities. These are turbulent times, and this is also reflected in the startup trends: Many young entrepreneurs are trying, in their own unique ways, to bring people closer together and thereby make the world a little bit better.
