Business Fundraising: How to Scale From Local to Global
Submitted by: Tony SeifartWhy fundraise on a global scale
Raising capital for your startup is a critical step in turning your entrepreneurial vision into a tangible, thriving business, especially when you start to think at scale. The right investors can bring so much more than money to the table - they can become solid partners in your business growth journey. That's why it pays to cast your net wide when it comes to fundraising.
An international financial partner brings new perspectives and market insights that transcend local boundaries. An international investor can also pave the way for your local startup to achieve scalability and global reach, which is especially crucial in today's interconnected market. International investors also offer startups a competitive edge by providing access to emerging markets and new customer bases that might otherwise have stayed out of reach. An international investment partner should be a no-brainer. It’s not just about securing funds, it's about building the foundation for global success and a presence in the wider business arena.
Identifying potential donors and partners
Reaching potential investors outside your normal business arena might need some foresight and planning. Here are some effective methods:
- Networking Events and Conferences: Participating in international business conferences, trade shows, and networking events is a great way to connect with potential investors. These events often attract venture capitalists, angel investors, and representatives from investment firms, so make sure that your elevator pitch is ready to go.
- Online Investment Platforms: Utilising online platforms that connect startups with investors globally can be highly effective. These platforms allow you to showcase your business to a wide array of international investors, while also researching their background. Ensure your business plan, pitch deck, and financial forecasts are polished and accessible.
- Venture Capital and Private Equity Firms: Targeting venture capital and private equity firms that have a history of investing in your sector and geographical focus is a smart move. Pitch your approach to align with their vision and show them how your business can add to their investment portfolio.
- Angel Investor Networks: Tapping into networks of angel investors, especially those with an interest in international investments, can provide not just funding but also valuable mentorship opportunities and business connections.
- Incubators and Accelerators: Participating in globally recognised incubator and accelerator programs, such as our own FundraiseCon, can offer exposure to a large network of potential investors. Many of these programs end with a demo day where startups can pitch to a room of investors, a win-win scenario.
- Industry Partnerships: Forming strategic partnerships within your industry can also lead to investment opportunities, as you network with your peers and showcase your strengths.
- Social Media and Content Marketing: Building a strong online presence through social media and content marketing can attract investors. Share your personal business journey, company milestones, and industry insights to grab the attention of investors around the world.
- Direct Outreach: Researching and directly reaching out to potential investors who have shown interest in businesses or industries similar to yours can be effective. Personalised communications that clearly articulate your value proposition and potential for growth are key.
- Financial Advisors and Consultants: Engaging with financial advisors and consultants who specialise in international investments, such as the advisors at Outsourced CFO, can provide you with access to an extensive business network as well as guidance on getting yourself pitch-ready.
- Local Government and Trade Agencies: Many governments and trade agencies offer support to local businesses looking to expand globally, including connecting them with international investors.
Understanding the investment landscape, cultural nuances, and legal considerations of different regions is critical in effectively reaching and engaging with global investors - which is why you need the experienced Outsourced CFO team at your side.
Understanding the main categories of fundraising is crucial for strategic financial planning. Here are the four primary categories to consider:
- Debt Financing: This is probably the first option for many when it comes to accessing capital and involves borrowing funds that need to be repaid with interest, usually from a bank. This is a straightforward way to raise capital without diluting ownership, but it increases your company's debt obligations.
- Equity Financing: This refers to raising money by selling company shares. This doesn't incur debt, but it does dilute ownership and can be a viable option for funding growth while sharing financial risks with investors.
- Grants: Grants are ideal for specific projects or initiatives, often with no equity or debt implications, but they usually have stringent eligibility criteria so make sure that you do your research.
- Crowdfunding and Donations: This platform involves collecting small amounts from a large number of people. This is often more accessible and community-driven, but it may not provide large-scale funding for a growing business.
Each category has its trade-offs, and the choice depends on your company’s financial health, growth stage, and long-term objectives. Balancing these options is key to sustainable financial management and finding investors with the right fit for your needs.
How Outsourced CFO Can Help
If all these options seem overwhelming, and you don't know where to start - look no further than expert advice from Outsourced CFO (OCFO). We are not only entrepreneurial in our own business outlook, but make it our mission to support entrepreneurs throughout the fundraising process. From preparing financials and meeting with investors to managing liquidity and systems post-investment, our advisors are here to partner with you on your fundraising journey.
Over the last decade, we have crafted the ideal fundraising process for scaling companies around the world. We call this the Funding Readiness Journey. The first step in the journey to raising capital is our proprietary Fundraising Gap Analysis which dives into the details of the business and is designed to provide clarity and direction when seeking to raise capital. From the Gap Analysis flows the fundraising strategy, financial modelling, valuations, due diligence, investors collateral, and investor linkages. This process taps into the knowledge of our chartered accountant-level corporate finance experts. Imagine having access to a team who have navigated the complexities of the fundraising journey dozens of times over to serve as your funding round’s deal crafters!
Are you looking to raise a seed or series A round? Or are you perhaps a more complex, later-stage organisation targeting expansion into new markets and territories? Whatever your needs, we have the skills and experience to assist. To find out more information, or to contact our team, visit www.ocfo.com
JamJar Media is a multi-disciplined Media, Content, and Reputation Development firm that works directly with clients to create a positive impact for their company and brand.
Latest from
- Outsourced CFO Revolutionises Financial Talent Solutions Ensuring Business Continuity During Unplanned Absences
- Outsourced CFO Wins at the 2024 South African Small Business Awards
- Outsourced CFO Unveils Dedicated Private Fundraising Service with an Exclusive Bowls Event
- Founders Foundation Opens Applications for Entrepreneurship Accelerator Programme
- Trigger Wins 2024 Xero Bookkeeping Partner of the Year Award