Faraday launches First Drop, EuVECA

The fund will be managed in collaboration with Manuel Nieto and Alex Valero.

Faraday, a venture capital fund manager with ten years of experience in investing in innovative companies and significant “exits” such as Codigames, Habitissimo, and Signaturit, among others, is launching the First Drop today, in partnership with Alejandro Valero and Manuel Nieto.

Both managers have extensive experience in the financial sector, thanks to their successful investments in companies like Yuvod y Blaine, where they have achieved multiples exceeding 10X.  

In the past year, they have positioned themselves as a benchmark in impact investments at pre-seed stages, addressing a crucial market need. Unlike most impact investment vehicles, which typically focus on tickets of 500K and above, First Drop targets the earlier stages, providing support and funding to startups in their nascent phases.

Faraday, who has decided to incorporate the investment team to launch its first impact fund, First Drop, EuVECA, will invest in 40 pre-seed stage companies addressing the most significant social and environmental challenges of our time.

The goal of this fund is not only to generate a positive impact but also to demonstrate that investing in companies with social and environmental impact can be profitable, aiming for a target return of 25%. First Drop, EuVECA will focus on key sectors such as the circular economy, agriculture, and energy, among others.

The fund has a target size of 20 million euros, with a first close planned in the coming weeks, backed by prominent national investors.

Lucía Marinelli, CFO of Faraday, adds: "We are very excited about the launch of First Drop, EuVECA. We believe that Faraday's experience in creating and managing supervised funds, combined with the track record and vision of the investment team led by Manuel and Alejandro, creates exceptional synergies. Moreover, it perfectly aligns with our vision and values, which are guided by the highest Environmental, Social, and Governance (ESG) standards."

Manuel Nieto, founder of First Drop, comments: "We are thrilled that Faraday has promoted this pioneering fund in Spain with a mission to generate a positive impact on society and the environment while achieving financial returns."

Sources in media: Funds Society, El Referente, Capital Riesgo