July 28, 2021

Can Your Startup Raise Investments from US residents?

The United States is fast becoming the investor’s hub. Startups are increasingly searching for US investors for 2 key reasons – Dollar value and US market access / knowledge. Seeking US investors for your Startup can be complex as it involves two different countries. It is therefore important to know about the matters concerning business and investments in both the countries. To be on safer side it is always advisable to do proper research before stepping into a task like funding or investing, be it in the country or from abroad.

Key considerations while dealing with a foreign country for business are:

To be prepared with required documents, including accurate business records such as P&L statements
To be aware of the country’s laws related to business, taxes, corporate laws, entrepreneurship, and investments
Conduct an in-depth background research on the investing partners including any pending legal cases, financial outstanding obligations, other investments and other key areas
Create a network of reliable references and business contacts

Isn’t it fascinating to visit a foreign country? Similarly for an entrepreneur it’s about discovering new opportunities to grow and expand their business. This process involves a few risks and challenges. Joining hands with investors of varied and unique experience helps the business eventually.

Raising Adequate Funds from US Investors for Startups in India

In the initial phases, a startup faces a lot of challenges and it is in this time that Angel investors provide inputs and support in various ways to manage the situation. The advantage for startup founders is that these investors have gone through various market situations and hence they can be for sure better guides in such circumstances to give you wise advice.

India - US Investment

There are some organisations which are operational across the Globe to enhance the investment opportunities between countries. Below is a list:

Direct Line for American Business : Successful business requires constant up-to-date information about the market status Globally. Direct Line for American Business connects you directly to American ambassadors where you can get answers to your queries about US Investors.
U.S.- India Investors’ Forum (USIIF) : USIIF (U.S.- India Investors’ Forum) is a no-for-profit entity. It is a platform introducing US and Indian Companies and facilitating new business opportunities. It acts as a Liaison between the Indian and US Companies.It was formed in the interest to improve trade and investment facilities with the support of US Consulate and Indian portal.The primary focus of the platform is to enable the link between Business and Government leaders resulting in increased trade and investment. Membership with such a platform can give you ample benefits. It enables working relationships with US-based companies, provides information about latest investment opportunities and allows access to legal and financial team expertise in India and U.
Angel Investors in US: The US continues to be the leading market for Angel Investment. The investment is beneficial for startups getting funding and investors getting high-return on investments. Recent years have seen US Angel Investments channeled to sectors such as technology and healthcare. In the current wavering market many established entrepreneurs are looking up to Angel Investment options.
Hyderabad Angels : Hyderabad Angels is one among the active angel investing networks spread across the Globe connecting established Angel Investors and New Age Entrepreneurs. We also source and invest from overseas countries including the USA. We have extended collaboration with angel networks, incubators, accelerators, and institutes across the countries through which you can meet notable US investors seeking funding assistance for your company.

Tax Implications in India for Non-Indian Investors

Non-Indian US Investors will be investing through U.S. special purpose entities. During exit, the purchaser will withhold taxes on the amount of profit gained and the SPE will file taxes on its income returns in India. Consult US-India Tax Advisor before investing into a startup.

Raising Adequate Funds from US Investors for Startups in India

An indepth research is essential to find suitable investors to raise funds. Communication with precision about your company’s progress is the key in order to impress and attract good funding. You can also, directly contact leading Angel Investors or register in any US Investment or Funding companies and upload your company’s profile. This way you can project your company and attract investors. Taking the help of influencers who can act as a mediator or an agent to reveal about your company can get you potential funding.

Join us at Hyderabad Angels and get connected now with US Angel Investors to expedite business developments. Reach us at : https://hyderabadangels.in/contact-us/