Blog

Dealflow Q1 2021 – Faraday Venture Partners

By 11 May 2021 May 14th, 2021 No Comments

At Faraday, we are very excited to share with you our dealflow results for the first quarter of 2021. During these months, we have been looking for the most promising early stage projects in Spain and Europe to offer the best investment opportunities to our Partners. We would like to highlight as news the opening of the Benelux Club, led by the seasoned entrepreneur and investor François-Xavier Fanard, and our Fund, Faraday Europa I, EuVECA, which started investing this quarter.

Geography

Our main objective remains the same, we want to find and offer the best investment opportunities for our Partners both in Spain and internationally. The following is a quarterly study of the projects examined and contacted by our analysis team, so far divided between the Spanish Club and the German Club, and the recently joined Benelux Club, which will be integrated into our Q2 reporting blog.

Despite the global health situation, we have achieved very good dealflow figures this first quarter (Q1). We have seen more than 600 projects and contacted 40% of these companies, i.e. almost 250 companies.

Projects analysed in Q1 2021 – Breakdown by country

dealflow

A breakdown by country shows that 80% of the projects assessed come from Spain (44%) and Germany (36%), these being our two main focuses of analysis so far. The rest of our projects come from the rest of Europe, the USA and some LATAM countries.


Sectors

Secondly, we have also carried out a study of the sectors of the projects contacted during this past quarter. In this sense, the most popular sectors have been SaaS enterprise software, ecommerce/marketplace and Digital Health.

As it could be expected due to the pandemic, the least popular sector has been the Travel sector, which has been hit hard by the restrictions imposed by global health authorities worldwide.

Below you will find a breakdown by sector of the projects contacted by our analysis team:

Projects contacted in Q1 2021 – Breakdown by sector

dealflow

At Faraday, we provide our Partners with the best opportunities to invest in innovative and sustainable business initiatives in their early commercial stages. Furthermore, we do not invest only in one type of sector, as we do not have a thematic focus. In this sense, invested start-ups are active in various sectors, such as HR, e-commerce and video games, among others. However, we do find it interesting to analyse the trends currently present in the market when studying and assessing the different startups in the Venture Capital ecosystem, which is one of the many factors we take into account when making decisions regarding the companies we want to contact.

By Pierre Abolo – Investment Associate