Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
What is overseas funding?
Overseas financing is a company seeking financing from sources outside its home country.
It may be a good option for businesses that have a hard time finding local funding or want to expand globally, but companies should be careful when setting out their ideas.

Avoid telling potential investors too much about your product and know your legal options in the country you want to fund.
Seeking international funding could be an important step for many small businesses. This can mean reaching the next level of your business by expanding into foreign markets, diversifying your finances, or collaborating with a wider range of investors.
Despite the positive aspects of overseas financing, there are a few key risks you need to know before you start your journey. Overseas financing can make your business open to idea theft or copycat, which could put you in an expensive international patent dispute.

What is overseas funding?

Overseas funds, also known as international financing, foreign aid, or overseas financing, are required by a company to seek funds from outside the country of residence.
“Companies may seek funding overseas for a number of reasons,” said Devin Miller, CEO and co-founder of Patent and trademark attorney Devin. Miller IP Act. “The foreign country is the main Sunday for its products, the country having investors with expertise in the field in which the company develops products, or the company having a working relationship with a foreign investor.”
Financing is often a make or break factor in the success of a small business. Because 29% of startups run out of money, and especially in the US, the process of applying for funds is complicated.

There are many strict regulations and requirements from financial institutions that make it difficult for small organizations to receive adequate funding. As such, global funding has proven to be a popular and often successful option with foreign companies. Investment in excess of $ 4 trillion in American companies.
Editor's Note: need a small business loan? Fill out the questionnaire below to ensure our vendor partners receive free information with you.

Disadvantage of overseas funding

Despite its popularity, small businesses must carefully tap into the world of international investment. Idea theft or copycat is a common topic for start-ups seeking funding both internationally and domestically.
“Typically, when a company wants to invest from any investor, whether foreign or domestic, it must disclose details about its product, " Miller said." said. "Since the company is required to disclose this information, it opens the company to be impersonated by the investor.”
Miller said the biggest risk with overseas financing is that when the investor is in a different country, legal options under foreign policy may be more complex or different than what they would be if the investor were located in the United States. limit your ability to protect your product against counterfeiting.

You should also be wary of the Finder's fees and costs. When looking for international investors, it is common for businesses to use a “finder” that helps them find potential investors willing to lend. In the US, it is customary for finders to charge their customers typically less than 10%. To determine the amount of the Lehman Formula.
However, in foreign countries, customs or expected rates may differ, so you should be careful that the Finder does not impose exorbitant fees – the fee should never exceed 10%.

How can you prevent your product idea from being stolen?

If you are determined to seek international investors, there are a few measures you should take to prevent your idea from being stolen.
“The best way for companies to protect themselves is to do their homework on foreign investors, " Miller said." said. "Check with the previous company to see if the investor has invested before and if any. Recognizing the investor and his reputation is one of the best ways to prevent the copycat from reaching your product.”
Just explain what's necessary. When you meet with investors, pay attention to how much information is revealed about your product or idea, including your idea development process. Provide only those that are absolutely necessary and relevant to the investor's decision.
Proactively provide legal protection.

Before you call investors, protect your product as legally as possible. Apply for copyrights or provisional patents and make sure they are valid in the country you want to finance.
Do research on the legal application. Another way to protect yourself and your mind is to make sure you have a strong knowledge of your legal options. Look at how the country has handled previous similar cases. Are they looking at protecting the investor or the product? Are they more interested in developing Foreign Relations or domestic economic development?

Use strategic marketing. Identify your ideas as early as possible through marketing and make sure you have the documentation to support it. Be sure to highlight what your product is, what makes it unique, and connect it to your personal story. This will make it harder for others to co-opt your idea and provide your audience with the opportunity to mark potential imitators.
Remember to renew your patents and copyrights.

Renew your patents to ensure that your idea or product is constantly protected. If you don't pay on time, your registered rights expire.
How to find an international investor
The key to finding an international investor is to establish your company as a sound and intelligent investment, which requires time and careful planning. You need to prove to investors that your company is both worth investing in and a safe option that won't cost them.
Create a strong business plan. Whether you are looking for an investor or not, it is essential that your company has a detailed and well thought out business plan.

A strong business plan can reassure investors and allow them to see how you plan to use their money and where you want to take the business in the future.
Ensure reliability. Then, you should try to establish credibility in the eyes of a foreign investor. Remember that overseas investors may not know what makes you reliable to American companies. For example, if you have a Brooklyn-based finance company, that might signal youth and innovation to domestic investors, but confuse foreign investors about why you're not on Wall Street.
Talk to the local banks. As soon as you determine where to focus your investor search, visit local banks.

Foreign investors are often actively involved with their bankers, and so a good relationship with bank account managers will take you forward. Introduce yourself and convince bankers that it's a good idea for everyone involved for investor clients to invest in you.
Join key groups. This tip is about all traditional networks: find and join an international organization or groups that are meaningful to you and your business. Call NGOs, industry-specific groups, professional associations or local chambers of Commerce and regularly attend meetings and other functions. This will further strengthen your business as a reliable and reliable investment.

Forum Jump:

Users browsing this thread: 1 Guest(s)