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Dealflow Q2 2021 – Faraday Venture Partners

By 27 July 2021 No Comments

On behalf of our analyst team at Faraday, we are delighted to be able to share the second quarter 2021 results of our dealflow study.

Over the last quarter, in line with our main objective here at Faraday, we’ve been searching for the most innovative and early-stage projects in Spain and Europe. For this reason, we have consolidated our presence in Germany (41% of the projects reviewed by our analyst team originate from our German Club) and we have likewise made a strong start with our new Benelux Club, having analysed around 180 projects.

Geography

We would like to highlight that during this quarter our analysts have reviewed more than 650 projects across all our three clubs: Spain, Germany and Benelux. These are distributed as follows: Spanish Club (31%), German Club (42%) and our Benelux Club (27%). Of these projects, 43% have been chosen for a more in-depth study.

We have strengthened our prospecting efforts in these last two Clubs, which has enabled us to offer new investment opportunities on behalf of our German Club. We are keen not to lose momentum now and be able to present new projects to the remaining Clubs during the third quarter.

Projects analysed in Q2 2021 – Breakdown by country

dealflow

The geographical breakdown shows that 31% of our reviewed projects come from Spain, which is our main source for projects. This is then followed by Germany with 23%, and finally, the Benelux region accounts for 17%.


Sectors

By means of the following graph, you are able to see the sectors of origin for most of the projects analysed in our Q2 dealflow.

Projects contacted in Q2 2021 – Breakdown by sector

dealflow

The leading sectors of this last quarter were business software (27.52%), E-Commerce (15.34%) and Marketplace (11.88%). On the other hand, the sectors least present in our Q2 dealflow were the Travel sector (0.75%), which is mainly still recovering from the pandemic, despite some companies, such as Smartvel, having been able to pivot and adapt their service offering to the current needs of the market.

At Faraday we aim to analyse the investment trends present in the Venture Capital ecosystem. Through our two investment vehicles, the Deal-by-Deal model and our fund, Faraday Europa I, EuVECA, we have sufficient resources to sustain our growth objective. In addition, we emphasize that, as an agnostic fund, we do not focus on one sector in particular and are constantly on the lookout for new investment opportunities.

By Pierre Abolo – Investment Associate