The fact of the matter is businesses need capital to grow and for global growth, a business needs an international investor. In a competitive market like the UAE, there are plenty of business seeking investors. On the positive note, there are also ample international investment opportunities.
So the question is, how do you attract international investors in a competitive market like the UAE? In this blog, we will guide with a few tips and tricks on how to secure funding from international investors.
Tips to Attract International Investors
An important thing to note is even though inventors are looking to invest in profitable businesses, not all investors are the same and might have different industry affiliations and requirements. Ensure that you diligently research the investors you are interested in before making any decision.
The following are practical strategies to attract global investors for your startup or business.
Reach out to relevant investors
Before you jump into securing funding from investors, your efforts must be directed towards finding the right type of investor. Every investor has a particular sector they love or prioritize, so ensure the investors you want to attract are interested in your business or industry.
A few things to help you shortlist the relevant investors for your business:
● Explore their portfolio or interviews to identify their investment trends
● Understand the skills and if they align with your investment goals
● Cross-check their reputation in the market
Depending on the funding stage, there might be some changes in certain factors. Like, if you are looking for angel investors, choose investors with expertise in your target industry. For growth stage funding, you must select an investor with a great network to help you grow globally.
Define your value and purpose well
The first thing any investor wants to know about your business is the purpose and value proposition. What problem are you solving? Or how does your target audience benefit from your product/service? More often than not, this purpose drives investors, especially for early-stage ones. Early-stage investors are dedicated to helping businesses that offer unique products or are established in a growing niche in the UAE, like cleantech, fintech, real estate, and more.
When creating a pitch deck, build a storyline. Whether it’s a real-life story of how you came up with the startup idea or a fictional story on the usefulness of your business, create an engaging narrative to win over the international investor. You can also build a story that resonates with the investor’s culture. However, ensure that you do not make offensive statements.
Focus on market potential in your pitch
A stellar product just isn’t enough for the investors to make the final decision. They also want to know the growth potential for your business. That’s why you must focus on showcasing your market potential in local and global markets. Focus on researching your target audience, total addressable market (TAM), competitors, and market trends to explain why ‘now’ is the right time for
investors to make a profitable investment.
Build a scalable business model
One golden rule to increase your chances of securing funding is building a scalable business model. International investors help you expand your business beyond the borders. Therefore, a scalable business becomes crucial to quickly set up your business anywhere and reduce the setup cost & break-even point to profit from business expansion.
Highlight authentic financial projections
You may fake your confidence, but never fake a financial projection! International investors quickly catch on to overestimated or under-research estimates, which leads to quick rejections. Take the time to research your market and consumer trends to create authentic financial projections. Ensure that you have answers to how you estimated the trends and how you plan and achieve those goals.
State your plan and the role of a skilled team
While stats are crucial, the plan behind achieving those stats helps investors make the final decision. It is vital to briefly highlight your production, manufacturing, and management plans to demonstrate your business model’s practicality. You must highlight the skills of your core team and how they’ll contribute to achieving your goals. This helps the investors gauge your abilities and potential.
Showcase your traction
You have a scalable business model, a skilled team, and a flawless plan for your business. Great! However, the real question that most investors ask is whether your startup idea is feasible and if your target audience wants your product/service. So, showcase your startup’s traction. Traction doesn’t necessarily have to be a significant number. It can also be your MVP, initial customer reviews, the success of your first marketing campaign, and more. The goal is to show that your startup is viable and there is a demand for your business.
Show the government policies that support your business
The UAE has one of the most supportive environments for growing companies and startups. If you have ever been part of a government funding in the past or are being actively funded, legitimize your business for other investors. It is a sign of your business’ value.
Network with investors, incubators, and accelerator
There is no mystery behind the power of networking. Networking events like the International Investors Summit help you exhibit your startup for exposure and build your network. Connecting with local and global investors, incubators, and accelerators can help you secure references for future investment and explore funding opportunities.
Conclusion
International investors help you expand the business globally. But how to get foreign investors to invest in your business? In this blog, we discussed some strategies to attract global investors. Show your business’s value proposition, market potential, financial projects, and traction. You must create a scalable business model for global expansion and show well-researched projections. Focus on highlighting your skilled team and growth plans to achieve your desired goals. Networking can help you connect with international investors and secure global funding. Visit the International Investor Summit this year to get exposure to global investors.
FAQs
1. How do we attract international investors in the UAE?
You can attract international investors in the UAE by creating a scalable and reliable business model, offering a clear value proposition, and complying with the state’s legal framework. The key to attracting investors is highlighting your market potential, customer traction, and team efficiency to achieve your goals. Networking events help you connect with investor networks, accelerators, and incubators. These entities help you find global fundraising opportunities and secure references to improve your chances of securing funding.
2. How to pitch my startup to international investors?
Your pitch is your one chance to impress the investors and secure funding for your business. Your pitch should highlight your value proposition, market potential, tractions, competition, team strength, and, most importantly, a scalable business model. Include well-researched financial and market trends to highlight your growth potential and possible profits for the investors. The most important tip to improve your chances of securing funding is personalizing your pitch based on the investor’s interests and values!
3. What do international investors look for in startups?
International investors choose startups operating in growing sectors and have scalable business models, traction, and profit financial projections. Investors in the UAE often look for startups in thriving sectors like AI, fintech, cleantech, healthcare, and real estate to make global investments. They choose startups that comply with the state’s legal framework and can adapt to market
conditions. Being transparent about your policies, strategies, and projections wins brownie points from investors.
4. What mistakes should I avoid when pitching to international investors?
The first mistake that most startups make is giving a generic pitch. It may not work for every investor. Furthermore, ignoring research and using vague stats for financial projections, valuation, and market trends will lead to rejection from international investors. Not preparing a thorough business model based on the local market and exit strategy for the investors decreases your chances of securing funding. Prepare some basic answers for post-pitch FAQs and avoid being defensive when the investor raises concerns.
