Not all companies start out with a clear international strategy of raising capital abroad.“Going Global” may be an option that intrigues more than a few entrepreneurs in the prospect of securing money outside of their home country. This journey usually begins with a customer order, a business opportunity or by leveraging connections overseas.
The ease of capital movement in today’s global capital markets has made fundraising significantly more accessible than the past. According to Gust’s Startup Funding Trends 2016 report, the startup early-stage investor ecosystem is stronger than ever before. The industry is becoming increasingly international as more startups are applying for funding to seed, angel and venture capital investors.
Yet, after the seed level and those early follow-on investments, things may get “complicated.” That’s when the risk is greatest of falling into “the valley of death” as some may call the space between seed rounds and the much larger venture capital rounds. For growth stage companies seeking funds outside their domestic markets may sound like a costly proposition with high risks and low probabilities of success.
The pros and cons of international #funding - A founder's perspective on how to raise money abroad @Tespack @Thesocialcoin @AppLimitless and #VirtualBroker +? opportunities to expand your company to #SanFrancisco Click To Tweet
We interviewed four alumni companies based in Europe – Limitless, Social Coin, Tespack and Virtual Broker to understand the pros and cons of international funding. They raised additional rounds of money both in their home country and overseas after they graduated from Startupbootcamp programs. Here’s the long and short of what we found.
Going International: Raising Capital Abroad – What to expect?
- A Founder’s Perspective on the Key Challenges and Benefits of Raising Investment Abroad
- Companies Funding Trends – A short Overview of Domestic vs Overseas Investment Applications
- How Startup Fundraise by Countries
- The Future of Startup Funding – Exploring New Opportunities in San Francisco
Finnovista has conducted a study that, for the first time, aims to identify foreign Fintech startups that are currently offering their services in Latin America.
What to expect?
- The most appealing regional markets for foreign companies
- The evolution of new foreign companies entering Latin America in the following years
- Opportunities and obstacles in the region.