Understanding Multi-Currency Funding (USD, EUR & Local Currencies) for High-Tech and Growth Industries

If you’re running a high-tech company in 2024, there’s a good chance your investors wire USD while your engineers get paid in EUR, your cloud bill comes in USD, and your marketing agency invoices in GBP. Welcome to the reality of multi-currency funding.

This guide breaks down exactly how high-tech and growth companies—SaaS, AI, fintech, deep tech, and marketplaces—can structure, manage, and optimize funding across USD, EUR, and local currencies. You’ll learn how to design a currency strategy, manage foreign exchange risk, build the right operational infrastructure, and communicate clearly with investors.

1. What Is Multi-Currency Funding for High-Tech & Growth Companies?

Multi-currency funding refers to the strategic management of capital raised, held, and deployed across different currencies to support global operations in high-growth sectors. For tech companies, this typically means receiving investment in one currency while spending across multiple currencies in different geographies.

The distinction matters because funding flows don’t stay in one currency:

• Funding currency: What investors commit (usually USD or EUR for venture rounds)

• Functional/reporting currency: The base currency each legal entity uses for books and compliance (often dictated by incorporation jurisdiction)

• Operating currencies: What you actually spend—payroll in Tel Aviv (ILS), cloud costs in Seattle (USD), office rent in Berlin (EUR), development team in Bangalore (INR)

Between 2020 and 2024, the boom in USD funding for AI, fintech, and SaaS meant that companies headquartered in the EU, UK, Israel, India, and LatAm increasingly found themselves managing structural currency mismatches. A 2023 analysis showed that 70% of SaaS firms report international revenue streams requiring localized funding approaches.

Who should care about this:

• CFOs and VP Finance building treasury operations

• Founders managing runway and investor relations

• Treasury managers executing daily FX operations

• Portfolio managers at VC funds tracking portfolio company currency exposure

• Controllers handling multi-currency accounting and consolidation

2. Why Multi-Currency Matters in High-Tech: USD, EUR & Local Currencies

USD remains the dominant funding currency for global tech companies because of US VC dominance, dollar-based valuations, and the preference of international investors to standardize on a single currency. Yet operating costs live in an entirely different currency universe.

Here’s the typical pattern you’ll see:

• A US or global VC wires USD to your Delaware C-corp holding company

• Your German GmbH subsidiary pays developers in EUR

• Your Israel R&D center runs payroll in ILS

• Your India engineering hub operates in INR

• Your Brazil growth team spends in BRL

• Your AWS and NVIDIA bills arrive in USD regardless of where servers run

This creates structural FX exposure that can materially impact your runway. Between 2022 and 2023, the EUR/USD rate swung from near parity (0.96) back to 1.10—a move of roughly 15%. For a startup burning €500K monthly in European costs while holding USD, that swing added or subtracted several months of runway depending on timing.

Industry-specific patterns compound the challenge:

• Cloud infrastructure (AWS, Azure, GCP), AI compute (NVIDIA), and developer tooling (Snowflake, Datadog) are priced in USD

• Payroll, office costs, and local contractors typically run in local currencies

• Customer revenue may come in EUR, GBP, USD, or other currencies depending on market focus

Regulatory and investor expectations also shape base currency choices. Delaware C-corps report in USD. German GmbHs report in EUR. UK Limiteds report in GBP. Singapore Pte Ltds report in SGD. Each entity’s functional currency affects how you consolidate, what exchange rate fluctuations hit your P&L, and how you report to your board.

3. How Multi-Currency Funding Flows Actually Work

Understanding the lifecycle of a multi-currency funding round—from term sheet to deployment—helps you anticipate where currency decisions matter and where cash flow gets complicated.

Initial funding mechanics:

• Investor commitments are typically expressed in USD or EUR, even when capital originates from LPs in different jurisdictions (Middle East, Asia, Europe)

• Capital calls go to the parent holding company, usually a Delaware C-corp for US-focused rounds or a holding structure in the Netherlands, Luxembourg, or UK for European rounds

• Wire transfers arrive via SWIFT in the committed currency

Internal distribution:

• Treasury transfers funds from the holding company to operating subsidiaries

• These transfers can be structured as intercompany loans (debt) or equity injections

• Each transfer triggers a currency conversion if the subsidiary operates in a different currency

• The payment process from parent to subsidiary affects tax treatment and FX accounting

Typical bank and fintech infrastructure:

• Global business account at the holding level (USD or EUR primary)

• Multi currency accounts or wallets for holding various currencies without immediate conversion

• Local IBANs for European entities (SEPA access)

• US routing numbers for American operations

• Local account details for markets like UK, Singapore, Australia, Israel

Settlement timelines that affect forecasting:

• Cross-border USD–EUR transfers via SWIFT: 1–3 business days

• SEPA transfers within the EU: same-day or next-day

• UK Faster Payments: near-instant

• ACH in the US: 1–2 business days

• Local rails (PIX in Brazil, UPI in India): same-day or instant

For seed and Series A companies, in-house treasury typically means a founder or controller managing bank accounts directly. By Series C+, dedicated treasury functions or outsourced treasury management become common as cross border payment volumes and FX complexity grow.

4. Designing a Multi-Currency Funding Strategy for Tech & Growth Companies

A coherent multi-currency strategy answers three questions: which currencies to raise in, which to hold, and which to spend in. This shapes account structures, entity design, and financial operations across your organization.

Determine your reporting currency:

• Most globally funded tech firms use USD as their reporting currency for board packs, investor updates, and KPI tracking (ARR, burn, runway)

• EU or UK-headquartered companies with primarily European investors may use EUR or GBP

• Your reporting currency should align with how investors think about your business

Map your cost base by currency:

• Audit where money actually goes: payroll, vendors, cloud, marketing, rent, contractors

• Create a percentage breakdown, for example:

  • 50% USD (cloud, US-based SaaS tools, some contractors)

  • 30% EUR (European payroll, office, local vendors)

  • 20% local currencies (ILS, INR, BRL for regional teams)

• This mapping reveals your true currency exposure

Decide which currency to negotiate funding in:

• Later-stage AI startup with 80% USD revenue? USD funding makes natural sense

• EU B2B SaaS with primarily EUR customers? Consider EUR-denominated rounds to create natural hedging

• Mixed revenue? USD funding with strategic EUR or local currency holdings

Set reserve holding policies:

• Hold 6–12 months of predictable expenses in the matching currency to reduce conversion needs

• Keep strategic USD reserves for cloud costs and US vendors

• Accept that holding multiple currencies creates some operational complexity but reduces currency risk from adverse currency movements

Establish internal policies:

• Define target currency mix (e.g., 40% USD, 40% EUR, 20% local)

• Set maximum unhedged exposure per currency (e.g., no more than 3 months of EUR expenses unhedged)

• Establish review cadence—monthly for high-growth companies, quarterly for stable operations

• Document who has authority to execute FX transactions and at what thresholds

5. Managing FX Risk on USD, EUR & Local Currency Funding

After major swings in EUR/USD, GBP/USD, JPY/USD, and emerging-market FX between 2020 and 2023, FX risk management has moved from “nice to have” to “mission critical” for growth companies. The difference between managing currency risk well and ignoring it can be several months of runway.

Three types of FX risk for high-tech firms:

• Transaction risk: Converting funding into operating currencies (e.g., USD to EUR for payroll). Every conversion carries currency conversion costs and timing risk.

• Economic risk: Future revenues and costs in different currencies. If your revenue is EUR but competitors price in USD, a strong dollar makes you more expensive.

• Translation risk: Consolidating financial statements from subsidiaries in different currencies. Exchange rate volatility creates gains and losses that flow through your P&L or equity.

Concrete impact examples:

• A 10% USD strengthening turns €100K monthly European costs into $110K instead of $100K—$120K additional annual burn

• BRL or INR weakness against USD reduces the effective cost of offshore development teams—good for burn, but creates volatility in forecasting

• A European R&D center funded in USD but spending in EUR sees runway extend when EUR weakens, compress when EUR strengthens

Tools for managing FX exposure:

• Natural hedging: Match revenues and costs in the same currency where possible

• Forward contracts: Lock in exchange rates for future conversions (common for predictable expenses 3–12 months out)

• Options: Pay a premium for the right but not obligation to convert at a set rate

• Non-deliverable forwards (NDFs): For restricted currencies like INR, BRL, CNY where standard forwards aren’t available

• Balance-sheet hedging: Hold assets in currencies that offset liabilities

When to formalize hedging:

• Series B+ companies or those with >$10–20 million in annual FX flows typically move from ad hoc conversions to formal hedging policies

• Triggers include: material revenue in non-base currencies, multi-country operations, or investor/board pressure for FX transparency

Infrastructure needs:

• Treasury dashboards showing exposure by currency in real-time

• FX monitoring tools or API-based platforms that integrate with bank accounts

• Alert systems for rate movements beyond defined thresholds

• Regular reporting on realized vs. unrealized FX gains/losses

6. Operational Infrastructure: Multi-Currency Accounts, Local Rails & Treasury Tech

Efficient infrastructure turns a theoretical FX strategy into everyday practice. Without the right accounts, payment rails, and integrations, your finance team will spend hours on manual work that should be automated.

Setting up multi currency accounts:

• Choose providers supporting USD, EUR, GBP, and key local currencies in single platforms

• Obtain local IBANs for European operations (enables SEPA access with lower fees)

• Get US routing/ABA numbers for USD operations

• Where possible, establish local account numbers in markets like UK, Singapore, Australia for competitive exchange rates and faster settlement

• Many providers now offer virtual accounts that let you hold funds in various currencies without separate bank relationships

Leveraging local payment rails:

Region	Rail	Speed	Typical Cost
EU	SEPA	Same/next day	€0.20–1.00
US	ACH	1–2 days	$0.20–0.50
US	RTP/FedNow	Instant	$0.50–1.00
UK	Faster Payments	Instant	£0.20–0.50
Brazil	PIX	Instant	Free–R$1
India	UPI	Instant	Free–₹5

Using local rails instead of international wires can reduce transaction costs by 80% and speed settlement from days to hours. This matters when you need to pay suppliers, process international payments, or manage payroll across time zones.

ERP and accounting integration:

• Connect multi currency accounts to platforms like NetSuite, Xero, Sage Intacct, or SAP

• Enable automated FX revaluation at month-end using average or closing rates

• Configure multi-currency reporting that shows transactions in original currency and converted amounts

• Set up bank feeds for real-time transaction matching

Automated reconciliation:

• Match USD invoices, EUR expenses, and local-currency payroll to bank statements automatically

• Eliminate manual spreadsheet reconciliation that introduces errors and delays close

• Use payment data feeds to track which invoices are paid in which currency

Security and compliance requirements:

• Ensure providers comply with PSD2 (EU), PCI DSS (payment security), and relevant electronic money regulations

• For regulated tech verticals (fintech, crypto, gaming), verify enhanced KYC/AML capabilities

• Maintain audit trails for all FX transactions and counterparty relationships

• Financial institutions and payment providers must meet regulatory compliance standards that vary by jurisdiction

7. Funding Structures: USD, EUR & Local Currency Rounds

The currency you raise in shapes long-term exposure, investor dynamics, and treasury complexity. Understanding structural differences helps you negotiate better terms and plan for operational reality.

USD-denominated rounds:

• Standard for globally focused startups, especially in AI, cloud, cybersecurity, and Web3

• Common even when HQ is in Europe, Israel, or APAC

• Provides familiarity for US investors and simplifies valuation comparisons

• Creates currency mismatch if most costs are in EUR or local currencies

• Example: Israeli AI company raises $50M Series B from US VCs, but 60% of costs are ILS and EUR

EUR-denominated rounds:

• Increasingly common for EU-focused B2B SaaS, mobility, green tech, and industrial tech

• Makes sense when primary revenue streams are in EUR

• Preferred by European institutional investors and growth funds

• Reduces translation risk for EU-headquartered companies

• Example: German climate-tech raises €30M Series B in 2023, with 80% of customers in eurozone

Blended structures:

• Syndicates where US funds invest in USD and European funds commit EUR

• Operationalized at closing via agreed FX rate or side letters specifying currency treatment

• Creates complexity in cap table management but reflects investor preferences

• Requires clear documentation on how future rounds handle mixed-currency history

Local-currency funding scenarios:

• National development banks (BPI in France, KfW in Germany, BNDES in Brazil)

• Local VC funds investing in home currency (ILS in Israel, SEK in Sweden, INR in India)

• Government grants in local currencies for R&D or job creation

• These flows integrate into global treasury models as additional currency positions

• Often come with reporting requirements in local currency

Legal entity and intercompany implications:

• Parent company (often USD-functional) provides intercompany loans or equity to subsidiaries

• Intercompany loans create FX exposure if not denominated in subsidiary’s functional currency

• Equity injections avoid ongoing interest but create permanent FX translation exposure

• Tax treatment varies by jurisdiction—transfer pricing rules apply to intercompany arrangements

• Consolidation requires translating subsidiary financials at period-end rates (balance sheet) and average rates (P&L)

8. Case-Style Scenarios: Applying Multi-Currency Funding in Practice

Theory only gets you so far. These anonymized scenarios show how high-tech and growth firms actually handle multi-currency funding decisions across different stages and geographies.

Scenario 1: US-Funded AI Startup with European R&D

Company profile: AI infrastructure company, raised $40M Series B in USD (2022), headquartered in Delaware with R&D centers in Poland (PLN) and Romania (RON), sales across Western Europe (EUR, GBP), cloud costs entirely in USD.

Currency exposure:

• 40% USD (cloud, US-based tools, some contractors)

• 35% EUR (sales operations, Western European offices)

• 15% PLN (Polish R&D team)

• 10% RON (Romanian R&D team)

Approach:

The company established multi currency accounts with a fintech provider supporting USD, EUR, PLN, and RON. They hold 9 months of European payroll in EUR and local currencies, converting from USD quarterly based on FX forecasts. For PLN and RON, they accept some exchange rate volatility rather than hedging, given smaller absolute amounts.

Cloud costs remain in USD, paid directly from the holding company. European sales revenue in EUR and GBP flows to the regional subsidiary, creating partial natural hedging against EUR costs.

Result: 15% reduction in currency conversion fees versus converting on-demand, and 3 months of additional effective runway preserved during 2022’s EUR weakness.

Scenario 2: European B2B SaaS Expanding Globally

Company profile: B2B software company, raised €25M Series C in EUR (2021), German HQ, expanding into US and Singapore (2023–2025), primarily EUR revenue historically.

Currency exposure shifting from:

• 80% EUR, 20% USD

To:

• 50% EUR, 35% USD, 15% SGD

Approach:

As US revenue grew to 30% of ARR, the company opened USD bank accounts and began holding USD reserves rather than converting to EUR immediately. They negotiated with their Series D investors (a US growth fund) to accept a USD-denominated round, creating natural alignment between new funding and USD cost growth.

For Singapore, they established a local account to receive payments in SGD from APAC customers and pay the Singapore team, avoiding double conversion (SGD→EUR→SGD).

Board reporting remained in EUR for consistency with historical data, but included constant-currency growth metrics showing USD and SGD performance.

Result: Accept payments in customer’s preferred currency increased conversion rates 12%, while holding USD reduced FX transaction costs by 25%.

Scenario 3: LatAm Fintech with Mixed Currency Lending

Company profile: Fintech providing SMB lending, received $30M USD from US VCs and $10M equivalent from regional development institutions, operates in Brazil (BRL), Mexico (MXN), and Colombia (COP).

Currency exposure:

• Funding: 100% USD equivalent

• Revenue: 45% BRL, 35% MXN, 20% COP

• Costs: 40% USD (technology, US contractors), 60% local currencies (operations, customer acquisition)

Approach:

The core challenge: lending in local currencies while holding USD creates both credit and FX risk. A BRL depreciation means loan repayments buy fewer dollars, compressing margins.

They implemented forward contracts for 50% of anticipated local-currency collections, using NDFs given restricted currency status. For the remainder, they accepted FX exposure as part of the business model, pricing loans to include currency risk premium.

Operational costs in local currencies provided natural hedging against local-currency revenue. USD technology costs were paid from a USD account, avoiding unnecessary conversions.

Result: Margin volatility reduced from ±15% to ±7% quarter-over-quarter despite significant emerging markets FX swings in 2022–2023.

9. Governance, Reporting & Investor Communication in Multi-Currency Context

Boards and investors need consistent, currency-aware reporting to understand performance and runway. Poor FX communication creates confusion, erodes trust, and can mask underlying business performance—or make mediocre results look worse than reality.

Establish a clear reporting currency:

• Align all board packs, KPIs (ARR, burn, runway), and forecasts to a single base currency

• Most globally funded tech firms use USD; EU-focused companies may use EUR

• Track local-currency details internally but present consolidated view externally

• Document the rationale for reporting currency choice in governance policies

Monthly FX reporting requirements:

• Realized gains/losses: Actual FX impact on completed transactions

• Unrealized gains/losses: Mark-to-market on held foreign currency positions and receivables

• Average rates used for revenue recognition and expense translation

• Impact on key metrics: How FX affected EBITDA, gross margin, and runway

• Forward position summary: Outstanding hedges and their maturity profile

Governance structures for FX management:

• Treasury policy approved by the board (annually or at funding events)

• Approved counterparty list for FX trades (banks, fintech providers)

• Limits per counterparty to manage concentration risk

• Sign-off requirements by transaction size (e.g., CFO approval for >$500K single trade)

• Audit trails for all FX decisions and executions

Common reporting pitfalls to avoid:

• Mixing actual FX results with constant-currency metrics without clear labels

• Not disclosing material FX impacts on ARR growth or gross margin trends

• Ignoring covenant tests in debt facilities that are denominated in USD or EUR

• Presenting “beat” or “miss” versus budget without noting FX variance

• Changing FX assumptions between periods without disclosure

Sample board-slide metrics:

Metric	Reported (USD)	Constant Currency	FX Impact
ARR Growth	+33%	+40%	-7pp
Gross Margin	72%	74%	-2pp
Burn Rate	$1.8M/mo	$1.65M/mo	+$150K
Runway	18 months	20 months	-2 months

This format gives investors the complete picture: underlying business performance and FX reality.

10. Implementation Roadmap for Multi-Currency Funding & Treasury in High-Tech

Moving from ad hoc FX decisions to a structured multi-currency approach typically takes 6–18 months depending on company stage and complexity. Here’s a phased roadmap with specific deliverables.

Phase 1: Diagnostic (Months 0–3)

Objectives: Understand current state and capture quick wins

• Audit current currency mix across all entities (funding, revenue, costs)

• Map all bank accounts by currency, provider, and purpose

• Calculate actual FX exposure by currency and time horizon

• Identify unnecessary accounts and consolidate where possible

• Eliminate redundant conversions (e.g., EUR→USD→EUR round trips)

• Document current FX decision-making process and authority levels

Quick wins: Consolidating scattered bank accounts and reducing unnecessary conversions typically saves 20–30% on FX costs immediately.

Phase 2: Foundation (Months 3–9)

Objectives: Establish policy framework and core infrastructure

• Define base reporting currency with board approval

• Set target currency mix aligned with cost structure

• Establish simple hedging rules (e.g., hedge 50% of 6-month projected non-base-currency costs)

• Implement multi currency accounts with appropriate providers

• Integrate accounts with ERP for automated reconciliation

• Standardize investor reporting format with FX transparency

• Create transfer money policies between entities

Deliverables: Treasury policy document, multi-currency account structure, ERP integration, standardized board reporting template.

Phase 3: Optimization (Months 9–18)

Objectives: Add sophistication and automation

• Implement rolling forward contracts for predictable exposures

• Evaluate options strategies for large, uncertain FX positions

• Centralize liquidity management across entities (cash pooling where legally permitted)

• Deploy automated analytics dashboards showing real-time exposure

• Build scenario models for FX stress testing (e.g., 20% move in key currencies)

• Establish relationships with multiple payment providers for competitive exchange rates

Deliverables: Active hedging program, treasury dashboard, FX stress test scenarios, diversified provider relationships.

Training and Process

Throughout all phases:

• Upskill finance team on FX basics and company-specific policies

• Document playbooks for funding rounds in different currencies

• Rehearse FX risk scenarios with leadership (what happens if EUR drops 15%?)

• Create checklists for international customers and cross border transactions

• Establish maintenance fees and cost tracking for all currency-related services

Key Takeaways

• Multi-currency funding is structural for high-tech companies: you raise in USD but spend across EUR, GBP, and local currencies

• Currency mismatch creates real runway risk—10–15% FX moves in 2022–2023 added or subtracted months of runway for many startups

• Design your strategy around your cost base, not just your funding currency

• Build infrastructure that reduces conversion fees, speeds settlement, and automates reconciliation

• Formal hedging becomes critical at Series B+ or when annual FX flows exceed $10–20M

• Transparent FX reporting builds investor trust and surfaces true business performance

For high-tech and growth companies operating globally between 2024 and 2030, mastering multi-currency funding across USD, EUR, and local currencies will be a core strategic capability—not a back-office detail. The companies that build this muscle early will preserve more runway, expand into new markets more efficiently, and present clearer financial performance to their investors.

Start with a diagnostic of your current currency exposure this quarter. Map where your money actually flows, identify the quick wins, and build toward a treasury function that treats foreign exchange as a manageable risk rather than an unpredictable tax on your international business.

This article is provided for general information only and does not constitute financial, investment, legal, tax, or regulatory advice. Views expressed are necessarily high-level and may not reflect your specific circumstances; you should obtain independent professional advice before acting on any matter discussed.

If you would like support translating these themes into practical decisions - whether on capital structuring, financing strategy, risk governance, or stakeholder engagement - Bridge Connect can help.

Please contact us to discuss your objectives and we will propose an appropriate scope of work.