Faraday Venture Partners

"A man who is certain he is right is almost sure to be wrong"

Michael Faraday

What We Do

Faraday Venture Partners is a pan-European network of Private Investors’ Clubs and a Venture Capital Fund Manager.

We provide our Partners with, what we consider to be, the very best investment opportunities in early stage, innovative and sustainable entrepreneurial initiatives.

We structure and manage their investments, enhance the performance of portfolio companies and defend our Partners’ interests throughout the entire investment cycle, under the regulations of European supervisory authorities (CNMVESMA).

The investment associated with acquiring a stake in innovative Startups carries significant risks at a company-level and can lead to the loss of the totality of the investment made. So we encourage our Partners to diversify their investments in terms of business model, industry and geography, in the opportunties that we present to them.

Click here to learn more about our industry background

Faraday Venture Partners was first founded in 2012 as a Private Investors Club investing in innovative Spanish Startups. With its constitution, Faraday sought to make up for the lack of time, contacts and experience that Business Angels disposed of to build a diversified portfolio of Venture Capital investments.

Subsequently, in 2019, after more than 7 years and a portfolio of almost 30 investee companies, Faraday became a regulated management company, Faraday Venture Capital SGEIC, S.A., supervised by the national Stock Market Comission. However, while we channel our investments through collective investment funds (FICCs), we continue to maintain our essence of providing access to venture capital investments for all and for this reason, our new structure co-exists with the origional one. In 2020, we set up our first European Venture Capital Fund, Faraday Europa I, to invest in Europe’s best innovative Startups.

European Vision & Reach

Faraday’s Club model has become a reference in the Venture Capital industry, obtaining excellent results and feedback from our Partners and portfolio company CEOs, as well as recognition from fellow industry players.

With a local presence in Spain and Germany and experienced Managing Directors in Madrid and Munich at the helm, we have unrivalled access to early stage deal flow and profound insights into some of the most vibrant and international ecosystems.

Mapa de Europa
Spain: October 2011
Germany: November 2019
Benelux: April 2021
Italy: March 2023

Investment Philosophy, Criteria & Ethics

Industry agnostic

The continuous acceleration of innovation cycles makes it difficult to obtain superior returns by specialising in one industry/technology which could be disrupted in the medium-term. Entrepreneurs are now capable of innovating and creating important value in any industry faster than ever, and we work with industry, technology and scientific experts to effectively evaluate these aspects in potential portfolio companies.

Early commercial stage

We acquire minority shareholdings in Start-ups with a strong innovative component in their early commercial stages. This allows us to take part in transactions with moderate valuations and significant short to mid-term appreciation potential, while eliminating important product, market and execution risks through a thorough analysis of business metrics, personal and commercial due diligence, among others.

Team excellence, alignment and ethics

We are constantly searching for executive teams with proven execution abilities, that are inherently motivated to achieve customer excellence, generate further business opportunities and a positive impact on Society. Once invested, we work to ensure that they are as aligned as possible with the shareholders of the company and other stakeholders.

Common criteria for investment opportunities shared:

  • Minimum of 6-12 months’ commercial track record and a clear commercial strategy
  • 5X minimum profitability potential within an investment horizon of 3 to 5 years
  • High business defensibility and scalability potential through innovation
  • Private funding requirements of between € 250,000 and € 2,000,000

Ethics Framework

We pride ourselves in providing excellent service (>80% annual investment recurrance) and results (global historical liquid IRR above 17.5%) to our Partners and work every day to align ourselves fully with their interests, convinced of the positive social and economic impact we generate together: Partners, Entrepreneurs and Faraday.

We strive to maintain the highest possible standards of ethics, transparency and professionalism and adhere to the CFA Institute’s Code of Ethics and Standards of Professional Conduct when working in the interest of our Partners.

Portfolio & Exits

While past performance is no guarantee of future returns, in our 10-year history we have been able to consistently deliver attractive returns to our Partners, both through secondary trades and company sales to industrial acquirers.

Online platform connecting homeowners with home-improvement contractors.

Acquired in 2017
by Homeserve Ltd.

Club / E-commerce selling premium wine subscriptions and wine-related products.

Acquired in 2019
by Pernod Ricard S.A.

Online, real-time video games developer for mobile phones and tablets.

Repurchased in 2019
by Founders

Identification and electronic signature solutions with full legal and commercial validity.

Acquired in 2020
by Providence Equity

Sales platform for video and social games that produces and distributes its own social games online.

Acquired in 2020
by a company in the sector

SaaS B2B company focused on efficient time management by digitalising the time-keeping process.

Acquired in 2022
by Visma

Contact

Investors

Interested in our services for private investors?

Limited Partners

Interested in diversifying your investments with our Venture Capital Fund?

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