Arc has made several investments on an international level over the last two years. We often get questions about doing business in another country, whether from a company that is thinking about how to enter a market outside the U.S., or (more commonly) from a company that has been approached by a prospective international partner. In these cases, it’s critical to set out terms early in the process, as it can be difficult to understand who is worth the time and effort in an international market.
Often, sending an overview term sheet of the minimum requirements for international representation will end the conversation – which is a good thing. If people aren’t willing to go through that effort, then they aren’t the partner for you. If they are truly interested, however, it will move the conversation forward to set out terms that could include the following:
- Business Plan (including market information, initial target sites, business model, proposed staffing, 3-year projections and start-up cost estimates)
- References (business, academic, government, customers; U.S. if available)
- Personal or business financial statements
- Onsite training and visit requirements, including signing non-disclosure agreement
- Investment requirements
- Branding requirements
If your company is looking for more information on international markets or has been approached by potential international partners, contact us for planning advice today at firstname.lastname@example.org.