Sitemaps

Questions

Fundraising

What does a US company need to consider when receiving investment funds from a foreign investor?

We are a US-based tech startup raising our seed round. We may receive an offer from a foreign investment firm (family office). Does their foreign status in any way complicate our fundraise or cap table? Will other investors care, now or in the future?

Answer This Question

2

Answers

Carter Laren

Entrepreneur | Angel | Mentor @ Founder Institute

If you're structured as a C-corp (which, if you're going to raise venture capital, you should be), then it shouldn't matter. Most VCs have foreign LPs. If you're an S-corp, it can be a problem due to limitations around who can own shares. Also if you're doing government work, it could be a problem. Otherwise, I wouldn't worry about it.

Answered almost 10 years ago