Why Growth-Stage Companies Must Prioritize FX Strategy Before Expanding Internationally
This article is a contribution from our content partner, Deaglo Raising capital is a major milestone for any ambitious company. But when international expansion is the next step, financial leaders often overlook one critical risk—foreign exchange (FX) exposure. In the rush to scale operations, enter new markets, or hire global talent, FX risk can quietly erode profit margins, disrupt financial reporting, and even jeopardize funding rounds. Today’s investors are increasingly attuned to this risk—and they expect CFOs and founders to be too. So, why should growth-stage companies develop a robust FX strategy before raising or deploying capital overseas? Here are five compelling reasons. 1. Currency Volatility Can Damage Your Valuation Let’s say your SaaS company secures a $10M contract in euros, but your valuation and financial reporting are in USD. If the euro depreciates by 10% before that revenue hits your books, you’ve effectively lost $1M in enterprise value. That’s not a hypothetical—it’s a common risk in volatile currency markets. Whether you’re preparing for a Series B raise or eyeing an IPO, investors want revenue consistency. A well-structured FX hedging strategy protects earnings and helps you present a stable, reliable financial outlook. 2. Poor FX Management Signals Weak Financial Controls Investors don’t just assess your growth—they assess how you manage it. Companies operating across multiple currencies without a clear FX policy may raise concerns about operational maturity. Institutional investors are now asking: Having a formal FX policy demonstrates financial discipline, risk awareness, and investor readiness—all critical for securing strategic funding. 3. Hidden FX Costs Can Drain Your Expansion Budget Even basic international transactions—like paying overseas vendors or receiving foreign revenue—carry hidden costs. These include wide FX spreads, wire fees, and inefficient execution practices. Many companies unknowingly lose 0.5% to 3% per transaction, which quickly adds up. Sophisticated companies are now: By identifying and minimizing these costs early, you preserve more of your expansion capital. 4. Passive FX Exposure Limits Strategic Flexibility International growth rarely follows a straight path. You might fast-track a LatAm launch or pursue an acquisition in Southeast Asia. These strategic shifts require speed—and pricing certainty. Without FX hedging, exchange rate volatility can delay or derail deals. A proactive FX strategy allows you to move fast and execute with confidence, helping you convince boards, M&A partners, and investors of your plan’s viability. 5. Why an FX Strategy for Growth-Stage Companies Is Now Non-Negotiable Raising capital from global VCs, corporate venture arms, or family offices? Expect FX-related due diligence. We’ve seen GPs delay capital calls or miscalculate IRR due to poor FX risk management at the portfolio company level. Today, LPs are pressuring fund managers to ensure robust FX controls, and that means startups and scaleups must come prepared with clear policies. Establishing FX governance early not only builds trust—it positions you as a globally scalable business. The Bottom Line: FX Strategy is Investor Strategy FX exposure is a silent risk—but it doesn’t have to be. Companies that treat FX like a core financial pillar are better positioned to win investor confidence, protect growth margins, and scale across borders with less friction. At a time when investors demand both vision and operational excellence, your FX strategy could be the difference between a compelling story and a credible one. Join our Treasury Community Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.
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Bridging Old and New: Citi Steps Into Stablecoins and Crypto ETF Custody
From Treasury Masteminds Citigroup is making a bold move by exploring custody for stablecoins and crypto ETFs, alongside payment services that run on tokenized rails. For treasurers, this is more than just another headline in the ongoing “crypto meets banking” saga; it could reshape how we think about payments, liquidity, and safety in digital assets. Why Now? With new rules requiring stablecoins to be backed by high-quality assets like Treasuries and cash, banks are perfectly positioned to step in. Custody of those reserves is a natural fit. Add to that the surge in crypto ETFs and the growing demand for safe, regulated custody, and it’s clear why Citi is leaning in. What This Means for Corporate Treasury What to Watch Our2Cents This is where old meets new; and treasurers stand to benefit. In short; stablecoins could finally move from being a “crypto trading tool” to a treasury-grade liquidity solution. For corporate treasurers, that means faster payments, cheaper cross-border transfers, and the reassurance of real-asset backing—all wrapped in institutional compliance. Also Read Join our Treasury Community Treasury Mastermind is a community of professionals working in treasury management or those interested in learning more about various topics related to treasury management, including cash management, foreign exchange management, and payments. To register and connect with Treasury professionals, click [HERE] or fill out the form below to get more information. Notice: JavaScript is required for this content.