Round Table: Main exit routes for minority investors in startups

By 30 September 2013 April 30th, 2020 No Comments

In September we hosted a roundtable event at the Madrid Stock Exchange, where we discussed the main motivations and strategies of potential buyers of shares in subsequent financing rounds that provide liquidity for minority investors in startup projects.

At this event we welcomed Jesús González Nieto-Márquez, Managing Director at Madrid’s Alternative Stock Exchange, Leopoldo Reaño Costales, Director for Spain at H.I.G. Capital and Armando Calvo Chico, Head of Venture Capital for Spain at Telefónica Digital. Among the three speakers we discussed the three exit routes: Initial Public Offering (IPO), financial investor and the industrial buyer.

Every one of these routes was addressed in detail, explaining first in what it consisted, its characteristics, how it worked and the advantages and disadvantages that it conveyed for businesses compared with other financing routes. We also discussed the various motivations that cause firms to decide on each exit route. Other topics touched upon where Investment objectives and strategies, such as, the investment objective that each investor seeks with each particular exit, his investment profile and his investment strategy, as well as the criteria employed by companies such as Telefónica Digital in selecting investments and the type of synergies sought when analysing startups.

Concluding the event, we exhibited recent exit cases that provided liquidity for minority investors in the event of each exit route with a subsequent Q&A.