I-Square Ventures funding strategies described below are specifically for US companies that have 3 years of operating history and financial statements, including tax returns and a D-U-N-S Number. For non-US companies seeking funding from US investors, please contact us only if you have more than $1+ Million in Annual Recurring Revenue OR $250K+ in sales to US-based companies.

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Our funding approach is very unique

To save you time, we would like to summarize how I-Square Ventures is different from traditional venture capital (VC) and private equity (PE) funds.

 

Traditional VC and PE funds bankroll the execution of great ideas by proven entrepreneurs by buying common and/or preferred shares in their companies. Their funding models are dilutive in nature but play the very important role of shepherding risk in the innovation eco-system so we have great relationships with a lot of them. I-Square Ventures only facilitates non-dilutive funding for specific transactions where a foreign buyer is involved. We work with our network of private equity and commercial banking relationships to help fund international expansion transactions AND mitigate the risk of non-payment by customers that operate outside the U.S. Legal System.

 

Traditional VC & PE funds typically like to control the number of voting members on the Board which, in essence, provides them with complete control of the company which, in turn, helps them protect their investment. They do this in a founder-friendly manner as much as possible. I-Square Ventures requires no governance control.

Another key difference is that traditional VC funds typically fund ideas that have an addressable market-size of at least $1+ Billion. I-Square Ventures has no such limitations. We fund transactions of any size as long as they meet all of the requirements below, in addition to our proprietary underwriting criteria.

Key decision-making criteria for funding

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We only work on funding projects with American companies who wish to sell products outside the United States of America. All products must have at least 50% American labor and materials for transactions lasting less than 1 year in duration. For transactions whose delivery period duration is longer than 1 year, 85% of the labor and materials must be US-based. 

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All products included in the transaction must be shipped from the US. For professional services transactions, the staff providing the services must be based in the US, even if they have to travel overseas frequently.

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The transaction size should be a minimum of $1+ Million but can be as large as $1+ Billion.

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Three years of revenue and cash flow positive financial statements and tax returns for the business.

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Three years of business owners personal financial statements and tax returns.

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Receivables and Inventory Aging Statements

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Even though we are happy to start engaging in discussions with companies prior to them receiving a Purchase Order from overseas buyers, we do need visibility to contracts and other documents prior to consummating a transaction.

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Protection for American companies selling to foreign buyers:

I-Square Ventures helps American companies offer attractive credit terms to foreign buyers instead of requiring your foreign buyers to pay cash-in-advance, use credit cards, or letters of credit. We utilize complex financial instruments to protect American companies from non-payment of their foreign buyers. If the foreign buyer does not pay the American company after successful delivery of products and services, I-Square Ventures will facilitate payment to the American company, and work with third parties to collect payment from the foreign buyer. Our payment protection strategies also help American companies elevate their commercial lender’s confidence to lend against receivables, thereby increasing your company’s borrowing base and accelerating its cash flow.

If International Expansion is a priority for you, please contact us for a pro bono consultation.

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