Currently, the economic outlook in Venezuela is permeated by a lot of uncertainty. Although this factor is not capable of slowing down the economy in the region, since there are many of us who are betting on raising capital with foreign investment. So if you have a start-up or a consolidated company in Venezuela and you are looking for foreign investors to expand your service. In this article we will explain what you must take into account to generate the confidence of foreign investors in Venezuela.

The first step to generate trust is to be very clear about the purposes and characteristics of the business. Why should I handle this information? Because this is where the guarantees that investors need to secure their capital are born.

Write a short speech to present your business to foreign investors

Create a pitch or speech where you go straight to the point without forgetting the benefits and guarantees of the investment. This will help you delimit your audience so you can propose a service that impacts a specific need or audience. This pitch tool works as a summary of the project for a quick understanding of the proposal. It will be very useful in case you are not very clear about where to get investors, so communicating it at any opportunity you deem convenient is key to get them.

Propose solid guarantees for the return of investments.

The structuring and application of guarantees to ensure the return of investors' capital is fundamental to generate the confidence of foreign investors in Venezuela. In this sense, it is important for each project or business to have the capacity to transfer money in and out of the country, to be backed against expropriations and other government sanctions, to comply with the laws where commercial activities take place, to have an investment fund, among others.

What we are looking for is a transparent conduct oriented towards good legal and commercial practices in Venezuela and the world. That is why by proving to foreign investors that there are methods and alternatives to the limitations of the region, we demonstrate that our economic practices are within the framework of the law. It is important for everyone that financial activities and communications are not interrupted, so it is necessary to generate confidence in the market opportunity and in the work team. With a good project outline, planning and risk control, investors will be interested in your proposal.

Plans a moderate and adaptable capital growth strategy

To earn increasing returns, a certain amount of risk has to be traded. So applying a capital growth strategy with moderate objectives is a good way to cushion the risk. This can be achieved by implementing investment in service expansion to attract more customers, technological optimization that impacts production times, among others. The convenient thing is that each share that is acquired by an investor has a tangible value within the company's processes. Therefore, if the company's 20% is invested in shares within the production process or execution of the service, this will generate the necessary capital flow to amortize the investment.

There are different growth strategies based on production, location, or other parts that need to be optimized for performance. Each approach is unique to each company so understanding the risks and expected returns will help you generate the confidence of foreign investors in Venezuela.

Have a corporate compliance program that supports the company's best practices.

The only way to ensure your reputation and promote ethics within the business environment is through corporate compliance. This refers to the set of mechanisms necessary to secure and verify that the financial practices of a company. Undoubtedly, complying with national and international legal requirements to develop and execute a service or product will be a key factor to get investors. Therefore, it is understood that foreign investors will prefer projects where these crime prevention mechanisms are being applied.

If you would like more information or need advice on this and other issues of criminal and commercial law, do not hesitate to contact us at contact us at. We also share with you our social networks so that you can keep updated on the legal topics that are in trend: Instagram, Facebook, Twitter y Linkedin.