What to consider when raising funds abroad?

The pursuit of international funding is a valuable strategy for companies aiming to expand their operations into new territories. In this article, we’ll explore five essential steps for success in this process:

• Solid business plan

Before seeking international investors, it’s essential to thoroughly review your business plan. This document should present the business vision, growth strategies, market analysis, financial projections, and how the funding will be utilized. Investors value well-structured companies with clear goals.

• International networking

Participating in international fairs, conferences, and events is an excellent way to connect with potential investors and partners. Networking is fundamental for establishing valuable connections and opening doors to funding opportunities. Stay informed about market trends abroad.

• Preparation for internationalization

Identify markets where your company can compete effectively. Evaluate factors such as culture, regulations, demand, and competition. Select countries that offer growth potential aligned with your strategic objectives. Preparing your company for internationalization also involves adapting products and/or services for foreign markets, understanding currency issues, ensuring legal compliance, and managing export logistics.

• Direct investment vs. Indirect investment

There are two main ways to raise international funds: direct investment and indirect investment. Direct investment involves acquiring equity in a company, while indirect investment includes loans and bonds. Understanding these differences is important for making informed decisions aligned with your goals and understanding how the relationships established with financiers will influence your next steps.

• Up-to-date due diligence

Thorough due diligence positively impacts raising funds abroad. Common practice in other countries, it allows potential investors to gain a clear view of the company’s financial performance and operational situation, enabling a secure assessment of potential returns.

In summary, international fundraising requires strategic planning, active networking, and an understanding of market intricacies. With these steps, your company will be better prepared to seek funding and expand its horizons.