Venture Capital

Lesson 4 – How to Raise Money Abroad

Venture capital is usually the hardest of all capital to raise. When trying to get venture capital from an individual, the “Ten Times Theory” is always in effect. This theory says that for every zero you add to the amount of venture capital you want, the task becomes exponentially harder by a factor of ten.

To find a person who will lend you ten thousand dollars of venture capital is 10 times harder than a thousand. To get $100,000 of venture capital is 100 times harder than ten thousand of venture capital and raising a million of venture capital from one person is 1,000 times harder.

Private investors with a million dollars of venture capital lying around to invest are few and far between. And private investors who are WILLING to invest a million in venture capital are even fewer and farther between.

We have raised venture capital abroad from individuals to expand our market and to avoid narrow minded views of institutions in the past.

Lesson #3 of this course showed us how to take advantage of distortions to obtain venture capital and ended by explaining how the borrower had created a limited partnership to expand the number of venture capital investors he reached abroad. This lesson helps with ideas on how to expand your potential venture capital sources overseas by overcoming the confidence crunch.

Individuals with a million dollars of venture capital may be individuals, but they act like institutions. We enhance our chances of success in raising venture capital if we create paths for investors to lend or create situations where they invest less venture capital per investor.

Advertising abroad is an excellent initial way to attract private venture capital investors quickly, but this can be expensive. Most media do not give your money back if the venture capital ad fails.

When you advertise for venture capital, you need ads that attract as many venture capital investor- lenders as possible (without creating a legal crisis by creating a public offering). One way to do this is to make initial venture capital investments or venture capital loans small as is practical.

This is for two reasons to keep your venture capital needs low. First, there are more investors with a little venture capital money than with a lot. Second, the biggest challenge in venture capital fund raising is the creation of confidence. International aspects of fundraising, i.e. distance, differing cultures, language and idiomatic obstacles, etc. hinder confidence.

One way to reduce these confidence blocks is by starting small so your venture capital investors can get to know you without great risk. The best way to create an international venture capital financing and or sales system is with a long-term plan that uses centers of influence and repeat business.

Step #1 is to have a small venture capital option. This does not mean you cannot have a venture capital investment or loan for large amounts as well. Good venture capital investment packaging matches your needs and the cost of the marketing itself in large and small amounts.

Step #2 in developing venture capital confidence is to have a good business plan in your offer. We look at how to do this in Lesson 5.

You can increase profits, enhance security and have extra tax and asset protection. Turn your passions into profit. Start your own international business now! Learn how to raise money abroad.

Find out more about our complete course International Business Made EZ at Garyascott.com

Until then, good business wherever you are and go!

Gary

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