Faraday In The News

Faraday Venture Capital, SGEIC, launches Faraday Europa I, FCRE, its flagship fund in the hunt for the best early stage startups in Europe

By 28 September 2020 October 14th, 2020 No Comments
  • Faraday, a renowned Spanish Venture Capital firm with an investment activity track record of more than nine years and exits such as Codigames, Habitissimo and Bodeboca, launches its Venture Capital Fund Faraday Europa I, FCRE.
  • The fund, with a size of €40M and targeting a return for its investors of more than 25%, will invest in companies that are focused on providing solutions fully adapted to a new hyper-digitalised post-Covid19 environment, with a high potential for rapid value creation.
  • Faraday Europa I offers geographic and sectorial diversification, with exposure to some of the most interesting entrepreneurial ecosystems in Europe, at a historical point in time for investment in Venture Capital.
  • The strong synergies generated between the Fund and Faraday’s investment activity in Spain, Germany and Portugal, with upcoming launches in Poland and Belgium, are particularly valued by the companies in which it invests, thanks to a unique combination of financial resources, advice and access to its extensive network of contacts and investors, which are invaluable to the commercial success and growth of its investee companies.

Faraday Venture Partners, a Venture Capital firm based in Spain and in full international expansion, launches its Faraday Europa I Fund, FCRE, via its Investment Management Company, Faraday Venture Capital, SGEIC.

Faraday, with a successful investment track record of 9 years and notable successes in companies such as Codigames, Bodeboca or Habitissimo as well as a promising startup portfolio including Signaturit, Reclamador or Lendismart, hereby completes its strategic expansion with the Faraday Europa I Fund, FCRE, aimed at private investors, Family Offices, large corporate investors and institutional investors.

The Fund, with a target size of €40M, and confident of achieving returns above 25% IRR thanks to a favourable investment environment and the appropriate resources and strategy, seeks to take advantage of the fast-growing opportunities associated with the development of new technologies, new consumer trends and new business practices.

Its investment philosophy involves investing in highly innovative and fast-growing companies in their first 6-18 months of commercial activity, at very attractive valuations and with moderate entry tickets, to accompany the most successful startups with larger investments in subsequent financing rounds. About 50% of the companies invested will be Spanish and the Fund will also have exposure to promising startups from Germany, Portugal, Poland or Belgium. The latter two locations will see Faraday be represented by Managing Directors with extensive investment experience and connections in their respective ecosystems from early 2021.

Faraday Europa I offers significant advantages to its investors, leveraging its growing network of over 230 individual investors, who provide contacts and commercial support to its investee companies, as well as the over 10 years’ experience of its management team. In addition, Faraday Europa I enjoys preferential rights over Faraday’s investee companies in all geographies, thus expanding its reach for its most important investments. Finally, Faraday Europa I offers additional services that are of great value to the innovation and corporate development departments of its corporate investors, thereby ensuring a recurrent flow of collaboration and investment opportunities with European startups within its sector of activity, among others.

Gonzalo Tradacete, CFA, Founder of Faraday and Investment Director of Faraday Europa I, highlights: “This is historically the best time to be investing in Venture Capital, and in particular to be investing in the early stages of highly innovative European companies. The global financial crisis, technological progress and digitalisation over the last 20 years, together with the development of entrepreneurship and innovation ecosystems, have opened up a new world of opportunities for the Venture Capital investor. The current dramatic impact of the pandemic accelerates the need for innovative solutions that fulfil new needs, address new threats and aspirations. We are facing the imminent creation of new markets, products and services with a common denominator: a strong need for financing and leadership. Faraday Europa I, FCRE wants to solve these needs together with the best leaders of the future”.

Faraday Europa I has just started its subscription period. The first close of the Fund will take place in December 2020 and will start its investment activity in January 2021. The Fund counts with the investment commitment of the Management Company and its current clients and is in discussions with several leading corporations having shown interest in participating as strategic investors in Faraday Europa I.

Faraday Europa I will be offered in the coming weeks to private investors, Family Offices and experienced institutional investors.

For more information, please contact us via email on: [email protected].

Media sources: Europa Press (Spanish), Expansión (Spanish), Business Insider (Spanish), Webcapitalriesgo (Spanish), Capital Riesgo (Spanish), El Referente (Spanish), Unquote (English)