How International Founders Can Raise US Financing

Raising capital as an international founder can be challenging, but with the right knowledge and resources, it is achievable. Once you understand the steps you need to take to achieve your funding goals, you can overcome obstacles and raise capital for your company to grow and succeed.

 

Step 1: Become a U.S.-Based Legal Structure

 

The first step for international founders is to become a U.S.-based legal entity. This means that your company needs to be registered, or will soon need to be registered, in the USA. Of course, if you are an existing company that was already registered elsewhere (for example in the UK, Germany, or Sweden), you can register your company in the USA and simply become a US entity.

 

Step 2: Find Your Product-Market Fit

 

The next step for international founders is to find your product-market fit. If you are building a product that has no direct competition, then the first thing you need to do is think about where and how you can test whether people will want to buy your product. Once you have developed your Minimum Viable Product (MVP), this will be used as the test tool to find out whether people are interested in buying your product. If this is the case, then you can build a sales team.

 

Step 3: Formulate Your Pitch

 

When you have found a product-market fit, it is now time to formulate your pitch. You need to create a presentation for investors that explains why your company is unique and valuable. This has to be done in such a way that potential investors can easily understand it and see the value in what you are doing. It also helps to include some kind of proof of concept so that investors can see that people are already interested in what you are doing.

 

Step 4: Understand Your Fundraising Requirements

 

Now that you have found your product-market fit and formulated your pitch, it is time to understand what kind of financing requirements you need to develop the business. You will need to look at the following factors:

 

1. How much money do you need to develop your product?

2. How will you use this money (marketing, sales, operations)?

3. What milestones will trigger the release of further funds?

 

This is an important point for international founders. When you are raising funds, your potential investors will want to receive some kind of proof that they can return their initial investment and then some. This depends on the stage of your company and the type of investor that you are talking to. For example, seed investors might be happy if you can show them how much revenue you have made over the past 6 months. On the other hand, growth investors will most likely want to see revenue growth over 3 years.

 

Step 5: Start the Investor Search

 

The next step for international founders is to find people who can provide you with the necessary financing. To do this, you need to start a list of potential investors and their contact details. You also need to make a shortlist of people who will potentially invest in your company. Now is the time to use all your networks and connections. If someone knows someone, then send them an email or make a phone call.

 

Step 6: Be Prepared for Meetings

 

So now you have found your product-market fit and formulated your pitch. You also understand the financing requirements and know who to approach for financing. The next step is to organize meetings with people on your shortlist and slowly build a relationship. Prepare your answers to the most common questions that investors will ask you and make sure that you follow up with them after each meeting. This shows that you are reliable, hardworking, and passionate about your business, which is exactly what they need to see in a founder.

 

Step 7: Raise Your First Round

 

You are now ready to raise your first round of financing. When you get to this point, you must raise enough money (the minimum amount) to develop your product further and start validating the market. If you don’t raise enough capital at this stage, then you risk wasting valuable time on a dead end and having to search for financing again.

 

If you’re an international founder, it is important to understand that the US market is different from any other market in the world. You must think about how you can test whether people will want to buy your product before you build a sales team and raise funding. However, once you have found your product-market fit and formulated your pitch, then you will be able to raise the financing that you need to expand your business. It is important to approach potential investors systematically and make sure that you are always prepared for each meeting. Remember, even when the time isn’t right, investors want to see founders who are passionate about their ideas and have already done some groundwork before they are ready to invest. If you follow this 7 step process, then you should be able to raise the financing that you need.

 

Learn more about how we can accelerate your company’s growth and raise your first round of financing at www.fidelmanco.com or get in touch with us today at info@fidelmanco.com.

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How International Founders Can Raise US Financing

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