Ways on how to get investment from foreign countries

Benefits due to the presence of the FDI in India :

The fact that international investors have presented a huge opportunity for all the start-ups in India has been known ever since the advent of the concept of foreign direct investment.
For numerous businesses, working capital has been one of the biggest barriers affecting the growth especially for the ones which are new in an already competitive environment.

Lack of capital has also been one of the major reasons behind the failure of businesses which has been quoted as 29 percent, a figure indicating how important this issue for the small and medium business enterprises is.

• How to get investment from foreign countries-

Realising how important foreign direct investment is for the growth of companies, few things need to be focussed on while choosing the way of funding from foreign countries :

Give importance to documentation and compliance

Regulations are difference from one region to the other. One thing that the foreign investors make sure of is that the business that they are investing in complies with all the regulations in that region so that they are not held responsible when it comes to breaking the rules or doing something that does not comply with the regulations defined for the region. So, in order to get an attractive foreign investment, you need to ensure that the structure of your organization complies with the rules and regulations that have been defined for your region.

Do not be fooled into paying more than is required

You can always use a finder to search for investors overseas. However, the only issue with that this company which will help you locate these potential partners or investors will charge in excess even though they will make your work way easier. However, you need to ensure that this finders fee being asked from you is either 10 percent of the amount of funding else it is considered to be an overpriced pay-off which will result in a loss for you.

Always keep an eye out for emerging opportunities

We live in a world where technology is constantly changing. In the business world, this technology has also changed the way in which the investors interact with all the potential businesses coming up. Initial Coin Offerings (ICO) have been a huge help for start-ups and have helped them raise billions of dollars of funding more than the traditional means of investments including private equity funds and VCs.

Enhance your networking opportunities

When it comes to investing in your business, the foreign investors will face numerous challenges including having to face tax regimes, markers, and regulations that they are unfamiliar with. These are some of the factors that make global investments such a risky venture. Therefore, it is always beneficial to be able to find a common platform where the business as well as foreign investor can reduce the intensity of these risks. Some of the best platforms to help discuss these risks and build trust include international communities and events.

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