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Venture capital analysis at CapCorp 2014


Integral service around a transaction
BY : Diego GutiérrezNovember Fri, 2014
This week ABRA INVEST attended the annual venture capital congress organised by Capital & Corporate in Madrid. One of the conclusions was the growth of the Spanish venture capital ecosystem, which still has a long way to go to reach the levels of activity of neighbouring countries. Expectations are improving as investment activity has picked up, with the number of deals in the third quarter of 2014 tripling that of the same period in 2013.

Where are the opportunities in the Venture Capital sector in Spain?

According to Beatriz González de Seaya VenturesIn Spain, there is a lack of Venture Capital funds that invest high tickets between 3 and 10 million Euros. This fact prevents many Spanish startups from making the leap to internationalisation with real possibilities of becoming world leaders. According to Javier Ulecia of BullnetAt present, this situation is causing companies to seek foreign funds and, as a result, many companies are having to relocate due to investor demands.

Another aspect that we would like to highlight from ABRA INVESTThe main reason for this is the excessive weight of the media and internet sector, leaving other technology sectors with less support. According to Javier Ulecia, the technology sector has shown globally that it is profitable, that multinationals are currently more interested in buying than in developing, giving start-ups more capacity for growth, and that Spain has well-trained personnel at a good cost. 

How is the lack of credit managed in VC activity?

If SMEs in general have suffered from the lack of bank credit, it doesn't take much imagination to realise that the situation is even worse for start-ups.

Carlos Conti of Inveready spoke of the need to generate imaginative financing proposals to overcome this barrier. Inveready started out as experts in public financing and gradually moved into venture capital investment, and currently has 5 funds with different proposals for investors. The last fund, in particular, is a Venture debt fund, the first of its kind in the Spanish market. Jaiver Ulecia also highlighted the public financing possibilities currently available in Spain and Europe that are replacing the banking market in early stage companies.

Sepideswas also present at the session, as a reference in public investment in venture capital. He announced that for the first time they are considering participating in private venture capital funds.

Is valuation important for VCs?

In this aspect, the comments of the different speakers, also influenced by the different type of relationship with their investees. For example, Bullnet is committed to a simple valuation system where a pre-money value and an exchange of shares is established without subjecting the valuation to future milestones. Seaya, on the other hand, believes that founders should not waste time in the process of raising capital, and opts for dynamic systems in which the valuation depends on the future development of the company. 

If you want to know more about Venture Capital in Europe 

[slideshare id=39738971&doc=lf-financiacioninnovacioneuropa1s2014-2014-09-02-141001025421-phpapp02&type=d]

Other posts that may interest you

In which sectors does European venture capital invest?

Most active VC investors in Europe in the first half of 2014

 

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