How EU Startups Can Attract International Investors

Over the past several years, countries throughout Europe have started hosting more startup-related events, encouraging the development of more technology, and offering more incentives to entrepreneurs.

Still, there may be a fundamental limitation for startup entrepreneurs in the EU; a large portion of available venture capital is still tied up in the United States, with angel investors and venture capitalists scouting for talent in their own country. Still other venture capital opportunities exist outside the EU and the US. So what can EU entrepreneurs do to attract international investors?

Be Prepared

First, you'll need to be prepared. If you're going to be meeting with some of the most noteworthy investors in the world, you'll need to be on your top game.

That means:

• Having a solid business plan. Hopefully by the time you start looking for investors, you'll already have a business plan developed. If you don't, now's the time to create one—complete with a detailed projection of how your business is going to make money.
• Understanding your weaknesses. Investors are going to be looking for the inherent weaknesses in your plan. You need to be aware of those weaknesses, and have a plan for how to address them. Otherwise, investors may not take you seriously.
• Starting with an interested audience. Investors want evidence that your business idea has merit, and the best way to demonstrate that is with some kind of interested audience, whether that's a client willing to be an early adopter, or a small crowd of social media followers pledging loyalty to your brand.

Assuming you have these basics in place, what steps can you take to attract more international interest?

Help Investors Get to Europe

You can start by helping your investors get to Europe; they'll probably want to see your company in its original or starting location. Most car insurance companies have policies that will allow your investors to travel freely once they're in Europe, and they probably have the money to spend on travel, but you'll need to help them by recommending hotels, places to stay, and things to see or visit.

Market to an International Audience

If your business is focused on an EU-specific problem, you'll probably only attract EU-specific investors. If your startup focuses on a global issue, or an issue specific to another country, you'll attract a wider pool of investors. This depends on the nature of your business plan, which may not be easy to change. However, you can always pitch an idea to expand your business to other markets; just make sure your messaging and purpose are relevant to an audience beyond the EU.

Know Your Target Investors

There are lots of angel investors and venture capitalists to choose from. You'll see the best results if, instead of casting a wide net and targeting as many people as possible, you narrow your focus to a handful who are truly relevant to your business. Focus your messaging to their interests and make your case for why your startup is relevant.

Diversify Your Approach

Finally, don't be afraid to mix up your approach. Talk to investors in multiple different companies, or from different backgrounds to maximize your chances of success. It also pays to build up a network of contacts in your local area; if they can't help you, they may know somebody who can.

Have a Backup Plan

No matter how carefully you execute your targeted plan to attract an international investor, you may not be able to secure the capital you want. In that case, you'll need to have a backup plan, which may involve one or more of the following:

• Redrawing the business plan. If you find your original business plan isn't strong enough to attract the interest of an investor, you may need to pivot. Learn from your mistakes and try redrawing the business plan with those key takeaways in mind.
• Funding the business yourself. You can try to fund the business yourself. For example, you might start a crowdfunding campaign, draw on your personal savings, or even take out a loan from a local bank.
• Postponing the idea. If you feel you aren't ready for the world of entrepreneurship, you can always postpone the idea, falling back to an old career until you're ready to try again.

Getting international attention for your startup is almost universally a good idea, but without a guarantee of success, it shouldn't be the only thing between you and startup success. Your achievement as an entrepreneur will be linked to your commitment and tenacity, so if your first plan falls through, keep moving forward with another approach.