Why and how to raise funds abroad?

Conducting rounds to attract investments abroad offers advantages that are still not available in the Brazilian market. Currently, in Brazil, there is a well evolved movement of Early Investors, or angel investors, as they are called, but there are still few investors in other stages compared to the ecosystem in the United States, for instance.

In this context, only startups in early stages get more options of funds to attract investments. Companies that are already in the second and third rounds find it more difficult to attract investments in Brazil.

That is where the importance of seeking investment abroad comes in. For startups that are already seeking bigger “checks”, the international market offers more options of investment funds and less paperwork.

The internationalization of the company’s structure is key for foreign investors to interest in the business. The vast majority of investors in the USA, for instance, don’t want to take the so-called “Brazil risk”, since they don’t know the Brazilian legislation and there are many bureaucratic issues in Brazil.

Therefore, in order to get investments abroad, the startup must invest in good tax and corporate planning, identify what are the short, medium and long-term goals and start the corporate restructuring process outside the country. The most common types are the Delaware FLIP, which is the opening of a company in the state of Delaware, USA, or the FLIP in an Offshore.