Are you a North American business angel seeking to invest beyond the United States?
Discover actionable strategies for identifying, investing in, monitoring, and exiting investments in high-potential non-U.S.-based companies through the Global Business Angels Network (GBAN).
GBAN is an inclusive global community of early-stage investor networks seeking to increase access to early-stage capital by developing angel investor capacity in burgeoning entrepreneurship ecosystems.
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(AI-generated session recap made available by Google NotebookLM)
This dynamic panel session, moderated by Linda Smith of the Global Business Angel Network (GBAN), brought together experienced angel investors Scott Fox, Maaike Doyer, and Marcel Dridje to discuss the intricacies, challenges, and opportunities of investing across international borders. The discussion covered a wide range of considerations from financial and legal structures like incorporating in Delaware or Singapore to economic factors, cultural nuances, and technological issues such as cyber security. Panelists shared personal experiences, highlighting the importance of finding jurisdictions with free money flow, leveraging trusted networks and diasporas, and conducting thorough research to find the right investment fit. The session emphasized that while challenging, cross-border investing offers significant potential and can be facilitated through strategic planning and collaboration.
Brief Summary
This dynamic panel session, moderated by Linda Smith of the Global Business Angel Network (GBAN), brought together experienced angel investors Scott Fox, Mikey, and Marcel to discuss the intricacies, challenges, and opportunities of investing across international borders. The discussion covered a wide range of considerations from financial and legal structures like incorporating in Delaware or Singapore to economic factors, cultural nuances, and technological issues such as cyber security. Panelists shared personal experiences, highlighting the importance of finding jurisdictions with free money flow, leveraging trusted networks and diasporas, and conducting thorough research to find the right investment fit. The session emphasized that while challenging, cross-border investing offers significant potential and can be facilitated through strategic planning and collaboration.
Outline
• Introduction of Panelists and Their Diverse Backgrounds in Angel Investing
• Key Challenges in Cross-Border Investing:
◦ Financial (legal structures, tax regimes, regulations)
◦ Economic (government co-investment, currency, talent pool, tariffs)
◦ Cultural (risk profile, trust, language, founder motivation)
◦ Technological (money transfer security, cyber security, remote board participation, platforms)
• Strategies and Perspectives on Overcoming Challenges:
◦ Importance of Legal Structure for attracting International Capital (e.g., US Delaware C-Corp, Singapore, UK)
◦ Ensuring Free Flow of Money for Exits
◦ Leveraging Trust-Based Networks and Local Angels
◦ Supporting and Engaging Diaspora Networks
◦ Importance of Founder Research on Investor Focus Areas
• Audience Examples and Discussion:
◦ Investing with dual entities (home country + Toronto/Delaware)
◦ Using Crowdfunding Platforms for Cross-Border Investments
◦ Investing Directly into Home Countries (e.g., Armenia)
◦ Opportunities and Challenges in specific regions (South Asia like Sri Lanka, Sub-Saharan Africa, Japan)
◦ Investing in Different Business Models (e.g., Asset-Heavy Manufacturing vs. Software)
• Discussion on Exit Strategies:
◦ Current Market trends (primarily M&A)
◦ Potential of Secondaries in Asia
◦ Emerging Models (e.g., Deep Tech Studios with planned corporate exits)
• Call to Action for More Cross-Border Investing
Notable Quotes
• "I really see angel investing as my window in the future. It gives me hope for the next generation." – Linda Smith
• "The most important thing for me as an angel network to... decide are we even going to have a conversation with the startup yes or no is can money flow freely if we invest? That's the most important part for me..." – Maaike
• "So really all of you who are investors, please support your local entrepreneurs because you deserve to recycle that money and create the flywheel that we saw Palo Alto become the center of the universe because they had that flywheel..." – Scott Fox
• "Africa for me is the next big thing and the sooner you start investing there, I think I'm really optimistic about Africa." – Marcel
Key Takeaways
• Strategic Legal Structure is Paramount: Founders seeking international investment should seriously consider incorporating in jurisdictions known for free money flow and familiarity with international investors, such as the US (Delaware C-Corp), Singapore, or the UK. This facilitates investment and, critically, exit.
• Network and Collaboration De-Risk Investing: Solo angel investing is risky. Joining local angel networks or clubs allows investors to share due diligence, leverage diverse expertise (financial, technical, etc.), and learn from experienced peers, significantly mitigating losses.
• Founder Research is Crucial for Fit: Founders must invest significant time (recommended 80%) in researching potential investors to understand their thesis, focus areas (e.g., software vs. manufacturing), and geographic preferences. Pitching (20%) should be tailored to the right audience.
• Diaspora and Local Support Drive Ecosystems: Supporting entrepreneurs in their home countries and engaging diaspora networks is vital for building sustainable local ecosystems and preventing talent and value from moving elsewhere.
• Navigating Exits Requires Flexibility: While IPOs are rare, M&A remains the primary exit strategy. Investors should be aware of regional market nuances and explore emerging opportunities like secondaries or pre-planned exits in models like deep tech studios.
Resources Mentioned
• Global Business Angel Network (GBAN)
• Angel Capital Association (ACA)
• StartupCouncil.org
• Epic Angels
• EBAN (European Business Angels Network)
• ABAN (African Business Central Network)
• Specific angel groups/networks: Sophia Business Angel, Galatasai Business Angel (Istanbul), TIA Women Business Angels of Ko, Damia Tunisian Women Business Angel, Moroccan Federation of Business Angel, Algeria Federation of Business Angels, Business Angel of Qatar, MGRB Diaspora Business Angel Network, Global Startups and GSA Ventures (Toronto), Tech Coast Angels (California), Armenian Angel Network
• Investment firms mentioned: Allayia Capital (Latin America VC), Outlier Ventures (Morocco), Sunnyside Venture (Japanese VC/angel), Raffles Capital (Singapore)
• Platforms/Tools: Crowdfunding Platforms, Zoom, Internet/Google
• Events/Programs: International Venture Academy, Founder Institute, Sushi Tech event (Tokyo)
• Organizations: Thai (The Indus Entrepreneurs)
• Books: Scott Fox's previous books on entrepreneurship and upcoming book on raising money from investors
Action Items
• Founders: Research investors thoroughly (80/20 rule). Explore setting up legal headquarters in international jurisdictions favorable to investment flow (Delaware, Singapore, UK). Be proactive in seeking out pitching opportunities and leveraging networks. Connect with diaspora communities.
• Investors: Consider joining local angel networks or clubs for shared learning and risk mitigation. Support entrepreneurs in your home region. Explore opportunities in emerging markets like Africa and South Asia.
• Community: Encourage and facilitate more cross-border angel investing.
