How & Where to Find Foreign Venture Capital Investors (Sources)

If you want to know how and where to find the right foreign venture capital investors, this article is perfect to read.

It reveals a lot of helpful information on how and where to find foreign venture capital investors.

 

Why Foreign Venture Capital Investors

The beauty and power of business is that no matter where buying and selling take place it is driven by profit.

This premise is the same whether you conduct business in the United States, the United Kingdom, or the United Arab Emirates.

Additionally, another common denominator in the business world is that level-headed businesspersons are looking for new ideas and investment opportunities.

Consequently, some investors are looking for returns on investment opportunities.

These venture foreign capital Investors are not bound by national boundaries but want to be part of innovation, for not only a return on their money but create a more business-friendly world.

Let us travel.

 

Personal Story

While serving in the Navy I had the opportunity to travel to many different countries and cities.

A few of those countries included Hong Kong, the Philippines, Australia, Singapore, Pusan, Korea, and a few more.

Whenever we had a chance to answer the liberty call announcement, we would find ourselves walking through these different places and being immersed in a whole different world.

The culture was different, the food was different, and of course different languages.

However, there was one common denominator.

That common denominator that allowed us to communicate with each other was the language of money.

Each of the different countries had its currency, but the bottom line was that there was no miscommunication when it came to money.

They had items that they wanted to sell and we as sailors had money to spend and so we spoke the business language of money.

 

Who Is a Venture Foreign Capital Investor?

Venture capital is defined as a monetary investment that is associated with high risk and yet has the possibility of a high return.

The venture capitalist, an individual or a group, provides the investment monies fully aware that there is a high risk involved and that any possibility of return is tied closely with the investment in the company’s future profits and subsequent cash flow.

Generally, the investment given back to the investor is in the form of a percentage of ownership within the company.

A venture foreign capital investor carries the same definition and involvement in investing in the company.

The only differentiation is that the capital investors are based in different countries.

 

10 Best Sources to Find Foreign Venture Capital Investors

 

1. Foreign Venture Capital Investors’ Blogs

One of the platforms that venture capital investors operate within is through a blog.

Many venture capitalists operate their blogs as part of their investment strategy to discuss and comment on a variety of subjects.

Sometimes a blog will provide a critical review of books and narratives that are published and promoted in the business world, discussion of writings that compare investment versus speculation, companies pursuing cutting-edge technology, etc.

It is a good idea to find out how these blogs can be accessed by the very various venture capitalists and read their thoughts.

These blogs will reveal the insightful and educational aspect of the venture capital investor and provide an opportunity to share commentary of your own.

This will help towards approaching these individuals and companies for possible capital investment opportunities.

Perhaps a dialogue will be struck and an opportunity to have a face-to-face meeting may result.

An example of a blog can be read by clicking here.

 

2. Twitter 

Another social media platform that can begin the process of engaging venture capitalists is twitter.

Many venture capitalists are active on this social medium.

It is an opportunity to observe what interests them and what subjects are being discussed.

This will provide an opportunity to respond and enter into a potential conversation with them through either a direct message or replying to a tweet.

 

3. Linkedin 

LinkedIn is a great way of connecting with venture capitalists.

As a member of this network, you can do a variety of searches and begin to reach out to these capitalists and expand your sphere of contacts.

Once a particular venture capitalist becomes part of your network you then can reach out to them in a specific professional message.

 

4. Events 

Venture capitalists are always looking for the next big investment opportunity.

Consequently, they typically have representation at several industry events.

It is at these events creative ideas and technological opportunities are always being presented.

It is a perfect match for individuals showcasing their innovation to be approached by venture capitalists at these events.

A website that facilitates the meeting of professionals can be explored by clicking here.

 

5. Tech 

A crude example of how to connect with a venture capitalist can be compared to fishing.

It is important to know that if you are hoping to hook a particular fish to know what is the bait of choices.

So, it is with foreign venture capitalists.

You need to know that the vast majority of the significant investments that are made by foreign venture capitalists are in technology.

Specifically, the area of interest for venture capitalists in different countries may be the development of clean or green tech.

This technology is defined as products or thinking that reduce carbon emissions and maximize the efficiency of energy.

Also, of particular interest for foreign-based venture capitalists is in the area of creative software, hardware, maximizing wireless opportunities, etc.

 

 

6. Networking 

A prime way of connecting with venture capitalists in distant lands is to maximize any network opportunities.

This means that often, a startup company does not have the financial resources to utilize on cross oceanic trips to meet with venture capitalists.

However, it can be done here at home by networking with local venture capitalists that most likely have a connection with their peers in different lands.

Therefore, if one is not able to go to where the investors are, then maximize any relationships locally in which those relationships could lead to cultivating a professional relationship overseas

 

7. Local Office 

Because of the expansion of businesses around the world, some venture capitalists may also be expanding their reach beyond their borders.

Many venture capital firms operate have established a local presence here in America in a variety of cities.

Therefore, a good strategy is to check to see if such satellite offices are in or near your community and reach out to those established offices.

• Top Venture Capital Firms
• What is Early Stage Investing?
• What is Venture Financing?
• What is a Venture Company?
• What is Pre-Seed Funding?

 

8. Sign Up 

Another aspect of networking is to join any affiliations or associations that host several events that may draw the attention of international venture capitalist investors to evaluate companies.

Also, if part of your company’s vision is to eventually expand to overseas operations, this will be extremely eye-catching for these foreign virtual capitalists in that they want to see their investments benefiting their own country.

 

9. Companies

Although not venture capital investors in the strictest sense of the definition, other opportunities of finding capital resources to promote your business and business idea are by approaching companies that take an active interest and part in promoting companies overseas.

An example company that operates as an accelerator is the pharmaceutical company, Merck.

 

10. QUALCOMM

Another example, QUALCOMM has taken on an extremely critical role in providing finances for businesses that are looking to provide service in Latin America.

 

10 Best Tips for Finding the Right Foreign Venture Capital Investor

 

1. Look for an Angel 

As an option to obtain financial backing for a startup company it is important to realize that there are investors known as angels.

These angels are not affiliated with any venture capitalist firms nor are they, necessarily, interested in investing their financial resources based on other interests of investors.

They are strictly on their own and may have the financial backing that you need to gain traction for your business.

 

2. Accelerators 

As the name implies, an accelerator is a potential option for a startup company to place their process firmly entrenched in the fast lane to gain traction and a boost to their fledgling business.

An investment firm that is defined as an accelerator usually operates within a set timeframe.

That timeframe can range anywhere from a few weeks to months.

The purpose of the accelerator program or company is to work with a group of consultants to help with the building of their business and help to avoid a variety of business and professional pitfalls along the way.

Some of the more well-known accelerators are YCombinator, 500 Startups, Village Capital, and TechStars.

 

3. Competitions 

Is important not to discount non-traditional ways of raising capital for your startup enterprise.

Therefore, as part of the variety of options available to you with funding your startup company is to participate in a variety of sponsored competitions.

These competitions are organized with the intent of promoting businesses and new ideas.

Often, these competitions are at an international level.

In addition to the possibility of excelling in the competition and gaining funding is also the added dimension of interacting with other competitors as well as investors who attend these events.

 

4. Eye to Overseas 

In addition to the option of finding private venture capital investors, there is also the added dimension of the governments themselves investing in private enterprise.

These foreign governments offer a variety of investment opportunities with the purpose being to solidify their country’s financial private entrepreneurial base.

Also, it may be worth your time to investigate such countries, which may offer financial support, help provide infrastructure, and even offer tax incentives for a company to operate within their country.

Examples of such countries offering these types of programs to businesses include Brazil with their program known as SEED, Luxembourg initiating a program called Fit For Starts, and France with their French Tech Ticket, and Start Up Chile.

 

5. Mutual Professional Relationships

An opportunity that may present itself in endeavoring to connect with virtual capitalists is to utilize any relationship leverages that you may have.

For example, if there are international attorneys or business individuals that you know that have a connection with foreign investors.

It may prove beneficial to try to leverage that professional relationship and endeavor to make a connection through them with potential overseas investors.

 

6. Vision

Although the stereotypical business deal consists of hard-cold cash, return on investment, and following solid business principles, it is important not to discount the inspirational component of a startup business.

Vision, passion, and commitment to an idea and birthing its success can also be part of the equation in obtaining needed financial support.

It is important, then, to have as part of your presentation to obtain funding from venture capital investors to have a clear vision, excitement, and path to success.

 

7. Business Plan

A clear and concise business plan should be in place that outlines the worthiness of the idea, be able to present a clear marketing strategy for your product, who will be your customer base, and argue to your investors as to why your customers will purchase or take advantage of your product.

 

8. Prototype 

If at all possible, it is beneficial to have a prototype of your product that you are hoping to find investors to help with your startup business.

Although an idea can generate enthusiasm and support, supporting that idea with a prototype would be further advantageous for the individual to show practically how the product will meet the needs of potential customers.

 

9. Compliance 

As one can imagine encouraging investments from foreign venture capital firms may raise a few eyebrows as to potential conflicts of interest or compliance issues.

It is important that has one has done their due diligence and homework in addressing any issues that may be raised regarding compliance and anticipate any other questions that may be asked.

The bottom line is all of the regulatory hurdles need to be fully realized and strides made to comply with these requirements.

Some of those compliance issues could concern subjects such as one’s company structure, banking regulations, legal regulations, taxation, and more.

 

10. Crowdfunding

Another option for an individual looking for investment support can be through the process of Crowdfunding.

Crowdfunding is an accumulation of money that is received by a significant number of individuals who donate in small amounts.

Unlike venture capitalists, Crowdfunding does not typically require investment ownership of the company that is financially supported.

Crowdfunding sites such as Kickstarter and Indiegogo are examples of venues where business startup ideas can find financial support.

 

Foreign Venture Capital Investors FAQs

 

What Are the Risks With Taking Investment Money From Foreign Capital Ventures?

There are 3 associated risks or issues involved with taking money from foreign capital ventures.

The first risk is there may be higher transaction costs, the second risk is currency volatility, and the third risk is associated with liquidity.

Currency volatility refers to the period in which the investment is received and returned and may be more or less dependent upon the rate of return in converting the foreign currency and United States dollars.

Liquidity refers to being able to sell an asset and the risk being a time issue due to political or other issues that a country may be facing.

 

What Are the Advantages of Foreign Investing?

The top three advantages of having foreign investors participate in an American-based company includes:

• It provides local economic benefits in a variety of locations
• It makes international trade easier to complete
• Foreign as well as domestic income can increase

 

Conclusion

Business is business.

It is the same around the globe.

There are buyers, there are sellers and there are investors.

Buyers buy great ideas, sellers sell great ideas and investors invest in great ideas.

You have the language needed to communicate to foreign venture capital investors.

It is the language of the invested money in cutting-edge solutions to impact the business world.