Foreign-investment screening and a round with a non-EU fund.

When a non-EU investor joins the round, foreign direct investment (FDI) screening may come into play. Spotted in time, it won’t stop the round. Missed — it can.

Foreign-investment screening mechanisms are meant to protect strategic sectors. For an ordinary SaaS company they usually won’t be a problem — but for companies touching infrastructure, sensitive data or dual-use technology they can mean needing approval.

When it kicks in

It depends on the company’s sector, on who the investor is and what control they acquire. Early detection is key — because the procedure has its own deadlines that must be built into the round schedule.

• Check whether the company’s sector is subject to FDI screening
• Establish the investor’s origin and structure
• Assess whether the transaction crosses the screening thresholds
• Build any procedure into the closing schedule

The worst scenario is discovering an approval requirement a week before the planned closing. That’s why we ask about FDI at the start, not at the end.