We invest in teams committed to creating and developing innovative businesses, with customers top of their minds, great execution capabilities and a burning ambition to create value and positively impact Society.
What We Can Do For You
Faraday can help you with private funding and strategic support, but can also provide innovative, early-stage Startups with various advantages when compared with traditional investment sources… and these could make the difference in your success!
Please check our selection criteria below and our value proposition for Founders, and if it sounds good to you please contact us!
- Private funding (equity or convertible loans) requirements between € 250,000 and € 2,000,000 per financing round
- Minimum of 6-12 months’ commercial track record of the product/service and business model to be funded
- High business scalability potential through innovation, capital efficiency and rapid growth prospects
- 5X minimum profitability potential for investors within an investment horizon of 3 to 5 years
We do not invest in business models without a clear commercial strategy, in groups of assets whose returns depend on underlying assets or companies (investment funds, accelerators, etc.) nor in singular assets (e.g. cryptocurrencies, commodities/raw materials, real estate, etc.)
Aside from our investment, we strive to provide useful resources, services and advice to our Founder teams, leveraging our international network of relevant contacts and structured empowerment initiatives:
- Investment-size flexibility: We adapt the size of our tickets to the phase of your Startup’s life, investing small tickets (200k€ minimum) at the beginning of our relationship locally through a Faraday Club, and larger tickets (> 1M€) through various Faraday Clubs and Funds at a later stage of your development.
- Unlimited resources: Each month new investors join Faraday. This means we are continuously increasing our available resources for investment follow-on for every well performing Startup in our portfolio, not only for the top ones. We are much more likely to invest in follow-on rounds, if you can demonstrate good performance, than most VC funds.
- Patience: Our Clubs’ regulated investment vehicles do not have a finite time horizon, eliminating the time pressure of regulatory deadlines relevant for most VC funds. We will never rush an entrepreneur for a bad sale and we can envisage investments in dividend-distributing companies that do not want to be sold!
- Strategic advice and co-investors’ network: Every day we build knowledge and experience, sharing best practice among our Founders and accompanying them, particularly in their most difficult stretches. We leverage our network and expertise to help them successfully close further financing rounds with strategic co-investors.
- Commercial empowerment program: We leverage the professional and personal networks of our over 220 Partners internationally in order to provide our Founders with relevant commercial opportunities through an incentives scheme. We know that rapid and sustainable revenue growth is one of the best proxies for value creation… and, of course, for our investment returns.
- Collective advantages program: We provide our Founders with a selection of useful, quality-checked service providers in various areas (tax, legal, technology, intelligence, PR, etc.) with discounts for portfolio companies.
- Talent pre-selection program: Once again, we leverage our Partners’ networks to tap into the right talent for the benefit of our high-growth portfolio companies in need of speedily incorporating personnel into their senior team.
Other Important Stuff
We take no money from Startups! No commission, fees, honoraries… nothing. We just invest in you and work towards realising your value creation potential… our management and success fees are paid by our Partners.
Before being Founders, investors, engineers and/or artists, we are all human beings… We know there’ll be errors, emotional ups and downs and extraordinary challenges, and (sometimes very) bad moments… we commit to confront them all with a positive, ethical and constructive attitude. We know it’ll make us all better Founders, investors… better human beings.
So, if the above sounds like we could be a good match and you have at least 3-4 months of commercial track record with an upcoming financing round, PLEASE contact us below!