The Startup Global initiative was created to:
- Answer strong demand from the startup community to provide more resources and technical assistance on exporting goods/services
- Measure the interest and capacity of city startup hubs and accelerators, and partner with federal agencies to help startups achieve success early on
- Evaluate the level of government engagement needed to have a measurable and positive impact on incubator partnership development and startup growth
Just this past July, the Department of Commerce, eBay, NYC’s Economic Development Corporation and the Global Innovation Forum hosted a forum for startups and small businesses to address the challenges and export opportunities in many key markets around the world. Some trade barriers discussed that startups need to address early on are intellectual property rights, access to capital, and shipping/licensing costs to sell abroad. As an example, agencies such as the International Trade Administration (ITA) have business counselors around the country to help streamline the process of going global and the U.S. Patent & Trademark Office (USPTO) provides resources to help protect a startup’s intellectual property – a crucial piece that is often overlooked or taken for granted.
Learn How EXIM Bank Can Support Your Startup
EXIM Bank is a federal government agency that provides support for startups by offering export credit insurance and working capital loan guarantees to support U.S. international sales. With export credit insurance, startups can obtain financial due diligence on foreign buyers, agents and distributors they meet at an event or trade show. For marketing/sales purposes, they are able to close deals faster when foreign buyers request open account (extended) terms. An EXIM guaranteed credit line provides the vital funds startups need to fulfill their new sales orders.
EXIM Bank can support startups, but there are certain conditions as to what kind of startup can be serviced. Startups who meet the following criteria can qualify for our financial products:
- Must be in business at least 1- 3 years
- Must have a DUNS #
- Must show positive net worth
As mentioned above, startups can be defined broadly or very specifically, but nonetheless, as long as startups show some profitability and are established for several years, they can qualify for our programs.
EXIM Startup Success Story
SynTouch, a technology startup based in southern California, develops tactical sensing solutions for industrial and medical applications. Due to high fixed costs upfront, SynTouch could not afford if a buyer defaulted on payment, particularly a foreign buyer based across the world. As a result, SynTouch looked to EXIM Bank for export credit insurance, which protects against losses due to commercial and political risks, covering 95 percent of invoice sales to customers overseas. Currently, SynTouch has 25 international customers in 14 countries and they continue to grow!
For more information on export credit insurance and other financial products, click here.