In recent years, the growth of online fundraising platforms has been remarkable. From networking platforms to blog post interactions, experts from Angels Partners break down the online options for expats looking to fundraise. In an increasingly digitized society, the shift to online fundraising solutions has radically increased. Throw in a global pandemic that significantly disrupted in-person business interactions and the world of startups witnessed an acceleration of this digital transition, highlighting the efficiency of finding investors online.

For entrepreneurial expats, the opportunity to raise funds online has never been more relevant. Fundraising is not only a demanding task but also a time-intensive and often inefficient process. Traditional methods of securing capital typically involve extensive travel, numerous pitches, and the risk of coming away empty-handed. In light of these challenges, here are seven compelling reasons why raising capital online is not just timely but a smart move for the long term. But before we get into the nitty gritty, first, let’s pin down some of the basics.

Where to begin with startup fundraising?

For many first-time entrepreneurs, it can be a tough pill to swallow: raising significant funding based solely on an idea is nearly impossible in today’s environment. Even startups with impressive sales—sometimes reaching tens or hundreds of thousands of dollars—often find it challenging to secure investment. Investors can always find reasons to pass on an opportunity, no matter how promising it seems.

Whether you’re launching your business or working on its growth, potential investors are primarily interested in one thing: your revenue. Many business angels prefer to invest in ventures that are already operational and have demonstrated some level of financial success. This underscores the importance of having a well-thought-out business model. If you lack initial funding, it’s crucial to approach potential investors in the right order and at the right time. For a more detailed breakdown, check out our article on The 5 Fundamentals for Startup Fundraising.

Adopting a progressive funding strategy is often necessary, regardless of how strong your concept may be. Ensure your funding requests align with the current stage of your project’s development, and always calculate the exact amount you need before seeking investment. Today, the dynamic between entrepreneurs and investors has evolved into more of a collaborative partnership. Investors are increasingly involved in the projects they support, offering not just capital but also strategic guidance and resources to help businesses succeed.

Why should expats opt for online fundraising?

• Quick and Easy Setup

Fundraising platforms make it incredibly simple to establish an online presence. For instance, at Angels Partners, creating a profile takes about 10 minutes, and your pitch deck can be reviewed and live within 2-3 days. With all necessary documents, financials, and paperwork in order, your company can be showcased to potential investors in just a matter of days.

• Save Time and Simplify the Process

The global shift away from in-person meetings has eliminated the need for endless commutes, back-to-back presentations, and countless cups of coffee. Entrepreneurs can now use their time more productively, focusing on business growth, marketing efforts, and expanding their networks. Online fundraising also streamlines the paperwork process, making it easier for investors to review deals and connect their bank accounts, allowing them to invest with just a few clicks.

●     Connect with the Right Investors

Rather than relying on a limited personal network, online platforms enable access to investors who are genuinely passionate about your business. These platforms expand your reach beyond wealthy or well-connected individuals, empowering anyone interested in your project to invest, thanks to initiatives like the Jobs Act.

●     Leverage Your Team’s Network

In traditional fundraising, the CEO or founder typically shoulders the responsibility of finding investors. Online fundraising changes this dynamic by allowing the entire team to contribute. By having your CTO, CMO, and other team members share updates on platforms like Facebook and LinkedIn, you can amplify your reach, increase visibility, and collaborate effectively even in a remote working environment.

●     Simplify Negotiations

Tired of repeating the same information during negotiations? Online fundraising solves this problem by allowing you to present all essential data—facts, figures, and projections—clearly within your online pitch deck. This approach reduces back-and-forth discussions and helps streamline the decision-making process, enabling you to move forward quickly and efficiently.

By embracing online fundraising, entrepreneurs can save time, expand their networks, and improve the overall experience for both themselves and potential investors.

What options are available for expats fundraising online?

1. Networking Platforms

With numerous platforms available, it’s important to understand the services each one provides to save time and maximize effectiveness. For example, LinkedIn, through its Sales Navigator tool, allows users to connect with a broad range of professionals, though it isn’t specifically designed for targeting investors. Crowdfunding platforms like Start Engine, and Wefunder, meanwhile, offer extensive networks but typically require entrepreneurs to have raised 50-80% of their funding goal to draw additional investment.

AngelList operates similarly to LinkedIn but is geared toward startups. When profiles are kept up-to-date, it serves as a helpful resource for investors seeking collaborations or deals, acting as a form of validation. For entrepreneurs pursuing funding through loans rather than equity, CircleUp provides a suitable alternative.

2. Social Media

Social media platforms are a highly effective yet often overlooked resource for connecting with investors. These channels offer startups opportunities to build momentum, attract potential backers, and gauge market interest, all while serving as a valuable tool for finding investment prospects. Platforms like Facebook and X (formerly, Twitter) have transformed significantly over the years, becoming powerful networking hubs that enable entrepreneurs to connect and maintain relationships with investors.

If you can access an investor’s profile or contact information, direct messaging could be a straightforward way to pitch your startup and secure funding. Alternatively, strategies such as sharing content, collaborating with others, and utilizing paid promotions or influencer partnerships can help boost visibility and attract interest. LinkedIn, in particular, can foster meaningful exchanges between founders and investors, though the process may be time-intensive and require sustained effort.

3. Blogs

Considered an underdog in this list of online options; have you thought about exploring blogs written by active investors? Engaging with investors through blog discussions can be an excellent way to connect with those who align with your company’s goals. Whether you share insights on your own professional blog—chronicling your fundraising journey and providing updates about your business—or engage directly on investors’ blogs, initiating a conversation could capture their attention and even prompt a response.

Blogging continues to be a powerful tool for finding investors, but entrepreneurs should approach interactions thoughtfully. Start by reading an investor’s blog to understand their interests and the types of businesses they typically support. A well-known example is The Intelligent Investor by Jason Zweig, a popular resource among investment professionals.

For high-profile investors who are publicly active, use the visibility of their work to gain insights into their business style and preferences. This can help you craft a tailored, personalized message that resonates with them. Additionally, guest blogging on reputable platforms or investing in a feature article can be a worthwhile strategy to boost your visibility, even if it comes with some upfront costs.

4. Emaling

A tried-and-true method for securing funding is through effective email outreach. Well-crafted email templates can streamline the process of finding investors and help entrepreneurs secure significant capital. As with any approach to connecting, personalization and thoughtfulness are key to building genuine relationships with investors. While templates are a time-efficient way to reach out, customizing your messages can significantly enhance your chances of success. Here’s a tip: start by researching potential investors (platforms like Crunchbase can be helpful) to ensure your goals align and to better understand what might capture their interest.

When drafting your initial email, keep it concise and engaging—offer just a glimpse of your idea without overwhelming details or requesting NDAs upfront. Take the time to polish your email thoroughly, ensuring it’s well-structured, professional, and free of errors in spelling or grammar. A clear and polished message can leave a lasting positive impression.

5. Entrepreneur-to-Investor Platforms

Raising funds in the digital age through online platforms and technology offers a highly effective way to identify and connect with active investors. Angels Partners, have simplified this process by helping founders find investors who align with their business needs, significantly reducing the time it takes to secure capital. With a network of over 40,000 investors, they are at the forefront of empowering startups to access funding.

6. Crowdfunding

Crowdfunding platforms provide a way to promote your funding opportunities to a broad audience, allowing individuals to contribute to your business. Various crowdfunding models may align with your specific needs.

Reward-Based Crowdfunding – This model allows you to offer incentives to contributors in exchange for relatively small investments. Rewards can include free products, discounted subscriptions, or similar perks, often organized into tiers based on the amount invested.

Equity Crowdfunding – In this approach, contributors receive shares in your company rather than expecting their original investment to be returned. Instead, they gain a percentage of the profits your business generates, aligning their success with your company’s growth.

What else should expats consider when fundraising online?

As outlined above, there are several different strategies and avenues available for expats raising capital online. Yet, with all these tools, it is vital that entrepreneurs equip themselves with the best chances of converting these resources into viable options. To do that, founders should consider:

Learning About VC Firms – VC firms, composed of groups of venture capitalists, pool resources from the same fund to invest in companies. These firms typically focus on businesses with substantial profit and growth potential.

Understanding Venture Capitalists (VCs) – VCs are private investors who use their own funds to support businesses. Their requirements vary; some may seek an executive or board role, while others might focus solely on equity or shares.

Building a Relationship with an Attorney – As a small business, maintaining a solid relationship with a legal advisor is invaluable. An attorney can provide guidance on various aspects of your business, including securing funding.

Leveraging Your Attorney’s Network – Attorneys often have extensive professional networks that can be helpful for connecting with other business owners or potential investors.

Establish an Advisory Council – Forming an advisory council—a group of trusted professionals—can provide valuable advice to help guide your business decisions and drive growth.

Whether you’re raising funds online for the first time or you’re a seasoned entrepreneur, get to know the fundamentals of fundraising and be ready to put in the graft!