Faraday Venture Partners

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Interested in diversifying your investment? Go to our Fund page

Looking for private funding for your Startup? Go to our Entrepreneurs’ page

Faraday Venture Partners was first founded in 2012 as a Private Investors Club investing in innovative Spanish Startups With its constitution, Faraday sought to make up for the lack of time, contacts and experience that Business Angels disposed of to build a diversified portfolio of Venture Capital investments

Subsequently, in 2019, after more than 7 years and a portfolio of almost 30 investee companies, Faraday became a regulated management company, Faraday Venture Capital SGEIC, S A , supervised by the national Stock Market Comission However, while we channel our investments through collective investment funds (FICCs), we continue to maintain our essence of providing access to venture capital investments for all and for this reason, our new structure co-exists with the origional one In 2020, we set up our first European Venture Capital Fund, Faraday Europa I, to invest in Europe’s best innovative Startups

European Vision & Reach

Faraday’s Club model has become a reference in the Venture Capital industry, obtaining excellent results and feedback from our Partners and portfolio company CEOs, as well as recognition from fellow industry players

With a local presence in Spain and Germany and experienced Managing Directors in Madrid and Munich at the helm, we have unrivalled access to early stage deal flow and profound insights into some of the most vibrant and international ecosystems

Investment Philosophy, Criteria & Ethics

The continuous acceleration of innovation cycles makes it difficult to obtain superior returns by specialising in one industry/technology which could be disrupted in the medium-term Entrepreneurs are now capable of innovating and creating important value in any industry faster than ever, and we work with industry, technology and scientific experts to effectively evaluate these aspects in potential portfolio companies

We acquire minority shareholdings in Start-ups with a strong innovative component in their early commercial stages This allows us to take part in transactions with moderate valuations and significant short to mid-term appreciation potential, while eliminating important product, market and execution risks through a thorough analysis of business metrics, personal and commercial due diligence, among others

Team excellence, alignment and ethics

We are constantly searching for executive teams with proven execution abilities, that are inherently motivated to achieve customer excellence, generate further business opportunities and a positive impact on Society Once invested, we work to ensure that they are as aligned as possible with the shareholders of the company and other stakeholders

Common criteria for investment opportunities shared:

• Minimum of 6-12 months’ commercial track record and a clear commercial strategy
• 5X minimum profitability potential within an investment horizon of 3 to 5 years
• High business defensibility and scalability potential through innovation
• Private funding requirements of between € 250,000 and € 2,000,000 We pride ourselves in providing excellent service (>80% annual investment recurrance) and results (global historical liquid IRR above 17 5%) to our Partners and work every day to align ourselves fully with their interests, convinced of the positive social and economic impact we generate together: Partners, Entrepreneurs and Faraday

We strive to maintain the highest possible standards of ethics, transparency and professionalism and adhere to the CFA Institute’s Code of Ethics and Standards of Professional Conduct when working in the interest of our Partners

While past performance is no guarantee of future returns, in our 10-year history we have been able to consistently deliver attractive returns to our Partners, both through secondary trades and company sales to industrial acquirers

Looking to learn more about our portfolio? Go to our portfolio page

Online platform connecting homeowners with home-improvement contractors

Acquired in 2017 by Homeserve Ltd

Club / E-commerce selling premium wine subscriptions and wine-related products

Acquired in 2019 by Pernod Ricard S A

Online, real-time video games developer for mobile phones and tablets

Repurchased in 2019 by Founders Identification and electronic signature solutions with full legal and commercial validity