What I've realized about startups in international markets(specifically India/Asia) is that they are either backed by folks who understand the local culture but can't develop a great product or folks who develop a great site--but doesn't connect with the geographical audience.

Every now and then you get a decent startup. ie. baazee.com in India played its cards somewhat right(acquired by ebay for 50mil but took 10+mil in funding I believe).

That is why google and yahoo have such an edge - they usually send an American exec. at some level to oversee international markets.

-Zaid