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How to structure angel investments to companies overseas?

I'm getting my feet wet in some angel seed funding in my home country Zimbabwe. I'm looking to better understand best practice processes for sending money overseas and making asset purchases on behalf of companies receiving investment. I understand that there may need to be audit controls in place as transfers over a certain amount sent overseas are subject to heightened scrutiny.

Can people here recommend:
1) Banks they have worked with for international transfers from US to overseas
2) Auditing practices for dealing with US customs/transfer regulations
3) processes they have used for transfer and funds disbursement to startups receiving investment

Let's assume that I'm fully aware of the political and financial hurdles specific to doing business in Zimbabwe and already have that handled.

3 Replies

J William Moore
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J William Moore Entrepreneur
Publisher: EV World. Founder & Interim CEO of QUIKBYKE
Shingai... maybe contact some of the micro-finance groups that might be in Zimbabwe. While they operate at a different investment level, they may be a good place to start to answer on some of your questions. I 'invest' in micro-businesses via Kiva.org.
Shingai Samudzi
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Shingai Samudzi Entrepreneur
Founder & CEO at ProjectVision
I've spoken to most already. The main reason I'm doing this myself is a lack of confidence in their financial operations and quality of resources they are providing to entrepreneurs on the ground. Sent from my iPhone
Joseph Wang
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Joseph Wang Entrepreneur
Chief Science Officer at Bitquant Research Laboratories
A lot depends on the size of the investment. A USD 10k investment (which is my typical size) works very different than a USD 10 million investment (which is the typical size of a VC investment.)

1) I use bitpesa to transfer funds between HK and Kenya and Nigeria.

2) US customs requirements don't require specific auditing. Again a lot depends on the type of products to be imported. Agricultural products are extremely difficult to import. Computer products are trivial.

3) Most angels/VC's will just send over the funds in the wire. The control over sending money typically happens at the fund level where there is a third party custodian that holds the funds in a trust. Once the angel/VC has decided to invest, the funds are typically sent over as a lump sum since they don't want the money to be idle.

I've found that microcredit generally is very problematic. The issue is that microcredit works best when you are sending the money to the same type of borrower. With small businesses every business is different so you don't get economies of scale.
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