Are you looking for foreign capital for your startup and don’t know how to handle the practical part of the process? Having a global bank account to receive investments is part of the fundraising process in the United States. Learn how to have an account in the country as a non-American company!
Fundraising beyond the borders of Brazil is already a practice adopted by several national and other Latin American companies, which seek more capitalized investors and fund diversity in developed regions when it comes to the innovation ecosystem.
The United States is an attractive country for startups in the region looking for investors. Besides having been in the venture capital market for longer, there is a lot of capital available for investments in the country, and the currency is stronger than the real, making the investment even more beneficial.
3 steps for Latin American companies to receive investment in the United States
As a rule, Latin American companies that will receive investment in the United States or other foreign countries create an offshore structure. In this case, the Brazilian company is under a holding located in another country. Check out the step-by-step!
1. Structure the offshore company: The startup creates an offshore structure in a foreign country, which involves the creation of a new company that will own the Brazilian company.
2. Choose the jurisdiction: It is necessary to choose the most appropriate offshore jurisdiction for your needs. This may depend on factors such as privacy, taxation, political and economic stability, and the cost of creating the company. It is common for Brazilian startups to have a holding in the Cayman Islands.
3. Open a bank account for the offshore: Then, a bank account to serve the offshore structure must be created. Considering that the investment will be received in the United States, in addition to the Cayman Islands holding, it is common to open an American company. In this case, a bank account in the country will also be needed.
How to have a global bank account to receive investments in the US
Opening a bank account in the United States can be a challenging task for foreigners. Fortunately, there are already options in the market that allow Brazilians to have an account in the country easily.
Solutions such as Trace’s allow the startup to have an account in the United States and another in the Cayman Islands, making the process much more straightforward, and everything is done remotely. On the platform, it is possible to manage the funds of both accounts and have complete control of your offshore structure.
In practice, after receiving the investment, Latin American companies need to transfer part of the funds to Brazil to capitalize on the operation, which continues on national territory. Previously, it was necessary to rely on a third-party company or bank to take care of this part of the process. Still, with Global Banking offered by Trace, the exchange appears as a solution integrated into the accounts.
This allows the startup to receive its funds quickly and pay the lowest rates in the market. International transfer was a pain for entrepreneurs who dealt with the process, and this can also be solved with Global Banking.
Trace was created by Brazilians who know firsthand the pains of entrepreneurs in the region, so they can solve the entire journey of the Latin American entrepreneur seeking foreign investment – from receiving the investment in a foreign account to the international transfer of resources.
To learn more about Global Banking and other Trace solutions, click here!
