We explain what a startup is and what types of SMEs Back Fund invests in.
Learn in this article what the differentiating factor of the Back Fund is.
Venture capital continues czechia email list to grow. In 2019, it grew by 42% compared to 2018, and once the clouds of the COVID-19 pandemic clear, it is expected to continue growing vigorously.
In addition, the European Reconstruction Funds will support digitalisation, innovation and development, through investments that are already included in the General State Budget . This will certainly boost the creation of startups.
Fintechs , for their part, will continue to grow, helped by open banking . It is expected that startups will continue to be created in this sector, which will need alternative sources of financing , such as that offered by Back Fund.
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What is a startup?
We hear more and more about startups , but it is important to be clear about what types of companies can be called this way. Startups are characterized by the following:
A Baker is someone who provides financial support by investing in a business, and Back Fund Backers seek to provide funding to good teams and projects that are seeking to validate their value proposition in the market.
This community of investors is looking for startups in the construction phase, with international ambition from day one and a clear vision of the project.
To evaluate the best investment alternatives, they rely on their community of experts , who evaluate the best operations, with the aim of building a solid investment portfolio with a high projection.
Within the Backers community , 50% have already invested in multiple companies and all come from different fields of activity and specialization.
How did Back Fund come about and what is its goal?
Back Fund was created by Adrián Gorritxo, Venture Developer at Socios Q, and Karel Escobar, former Campus Lead at Google.
It arises from the need to support startups with capital and entrepreneurship experts.
Their goal is to invest in 15 projects in the next 2 years, relying on their network of business angels or backers .
The average investment ticket will be €150,000.
In order to streamline the investment process and adapt to the needs of early-stage entrepreneurs, Back Fund has reached an agreement with the venture capital fund, Inveready .
Inveready, based in San Sebastian, is one of the leading venture capital managers in Spain, with 136 active companies in its portfolio and more than 400 million euros of assets under management.
What is the differentiating factor for Back Fund investors?
Back Fund differs from other business angels in that, in addition to investing in the startup, they accompany it with entrepreneurship experts, who help the entrepreneur with a personalized support program .
The startups they invest in will receive more than 10 hours of support per month from Backers , and the founders will be the ones to decide how to invest those hours of work.
According to Adrían Gorritxo, Co-Founder of Back Fund, to complement and accompany the startups, a diversity of profiles has been sought that will contribute their knowledge and experience , since they have worked on the front line of entrepreneurship in the following areas.
