Business International business

How to save money when you raise overseas investment

Madi Corr

04.09.25

Read time 2 minutes

There are several reasons why international investment is appealing to UK startups at the moment. With economic uncertainty prevailing, the impact of Brexit and a general consensus that UK lenders and investors are currently more cautious, there are potentially better and bigger deals to be struck on foreign soil.

America in particular, has a vast and established venture capital scene with deep pockets when it comes to tech valuations. In San Francisco alone, startups raised over $90 billion in VC capital in 2024. Startups across the US raised an estimated $178 billion. Singapore, Japan and Europe are also fruitful places for innovative startups to get backing — and there are several inspiring examples to prove it.

Earlier this year, British HealthTech company Cera Care raised $150 million through an international VC syndicate, UK AI voice translation startup ElevenLabs received £145 million from US and German investors and British autonomous driving business Wayve secured over $1 billion from backers in Japan and the US.

It’s clear that overseas investors can be a good match for ambitious UK startups, but there are financial considerations that come with raising money internationally. Thinking about savings ahead of a deal can not only help you trim the fat, but ensure you hang onto more of your deal money when the funds are wired over.

The risks

Securing international investment exposes your business to foreign exchange (FX) risk, meaning fluctuations in currency values could reduce the actual amount you receive, cutting into your capital and potentially shortening your runway.

Operating with an international funder may mean you also incur additional compliance and accounting costs, especially if you need to keep dual accounts. There may also be more complexity around payroll and employment law that you need to pay consultants to navigate.

Therefore, many businesses will want to save money and extend their runways whilst they raise overseas. But how can they do this effectively?

Keep it lean

The temptation might be to put everything in place to show your new VC or angel investors that you are ready to trade internationally immediately. But setting up international legal structures before you really need them is costly and not something your new investing partners will expect. One of the bonuses of getting overseas investment is that your funders can help you develop these practices, so keep costs low and don’t jump the gun.

Avoid losing money on poor exchange rates

Fluctuations in the FX rate can impact your deal amount without you spending a penny. One possible option is to ask your investor to send funds in your preferred currency. Alternatively, you could map out what money you need, and only transfer funds when required, but both of these solutions require negotiation with your investor and could complicate getting the deal over the line.

Look into opening a multi currency account which would allow you to hold money in multiple currencies and set alerts so that you only convert when the rate is favourable. This solution allows you to seek investment from any market, without incurring FX costs or needing to factor this concern into your deal negotiations.

Watch out for hidden banking fees

The fees you may need to pay - for example when sending, receiving or converting funds - can add up and it might not be obvious if and when you’ll need to pay them. This can end up chipping away at the amount of real terms investment you receive, so make sure you establish with your investor who is responsible for any fees during the process. You can also take proactive steps ahead of investment to protect yourself from any unanticipated fees before entering into the process by selecting a business account with transparent fee structures.

Tools to help you save

Overseas investment is proving a huge opportunity for UK startups at the moment and the deals are outpacing the UK scene. For savvy founders there are big deals to secure, but understanding the costs involved, the pace at which to invest and having the right tools in place is crucial.

With local account details available in over 9 currencies, the ability to hold over 40 currencies in your account and tools to automatically convert your money when the exchange rate suits you, Wise Business could not only streamline your international deal, but make sure you keep more of it.

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