Archives For venture capital

businessangels

Entrepreneur and business angel

In the beginning of the XX Century an angel was a wealthy person, who provided money for Broadway theatrical productions. The term angel began to be used in the USA in 1976 after a university publication reutilized it in reference to investors who supported entrepreneurs. Since then the term in the USA is angel investor, while in Europe we called them business angels.

These investors are essential in the financing of thousands of companies in the USA. In 2012 each of the 268,160 angel investors invested an average of $85.435 in a total of 67,030 companies. (35% of them startups). A total of 23,000 million dollars! The average angel deal size was $341,800 and the average equity received was 12.7%. Source: unh.edu

These dizzying figures don’t have anything in common with those in other countries Continue Reading…

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640px-Marco_Polo_traveling

Marco Polo, first entrepreneur who raised venture capital

Marco Polo, the Venetian merchant, who arrived to China in the thirteenth century, was one of the first entrepreneurs who got venture capital. He convinced several wealthy Venetians to finance his commercial expedition to Asia. Marco Polo promised that he would share his profits of this risky venture with them. These funders were a kind of precursors of the current venture capital, which main characteristics I describe below in a simplified form: Continue Reading…

Foto-Pello-Gamez

I interviewed Pello Gamez, one of three Geoactio’s entrepreneurs, who I met when they first launched their company. I negotiated Start Up Capital Navarra’s investment in their company. Since then, I have been witness to the positives changes in Geoactio, thanks to these entrepreneurs’ efforts, sacrifices and capacity to adapt to the market. Geoactio’s story is a good example of the difficulties which a start-up faces its first years and how its entrepreneurs overcame them.

Startup: GEOACTIO, Pamplona, Navarra, Spain.

Activity: Software and mobile applications development. Smart city and mobility projects. Smart bluetooth. Continue Reading…

cash is king is wrong

The main idea of ​​my post “Cash is king” and the previous one “The Metaphore of the tub” was that cash is the most important thing in startups. Although I confirm the general validity of the post, I would like to expect on the idea “cash is king” and make some exceptions.

I have known some entrepreneurs so focussed on raising funds for their project, that they forget everything else. Continue Reading…

Weareknitters web3

Photo: Alberto Bravo and Pepita Marin, We Are Knitters founders.

Startup: WE ARE KNITTERS, Madrid. www.weareknitters.com

Activity: We sell kits online to knit your own clothes, including 100% wool or cotton balls from Peru, wooden knitting needles and pattern. All in one kit recyclable supported with video tutorials for beginners. We operate in Spain, Germany and the UK. Continue Reading…

Photo of zizzybaloobah on Flickr

In business and investment the expression “cash is king” is widely used. This idea is the highest priority in terms of startup finance. A startup can assume that the first year will not bring benefits, provided it has clear when they will start. But what makes a high percentage of startups disappear shortly after its creation, is the red or running out of cash. Cash is one of the three legs of the financial plan, along with the income statement and balance sheet. This is most important in the case of startups. So, “cash is king”. Continue Reading…

Foto weareknitters.com

“We are knitters” is a company created in 2011 by two 25 year old entrepreneurs, Maria Jose Marin and Alberto Bravo. These entrepreneurs have the double merit of launching an innovative product that was originally traditionally-based and procuring prestigious investors.

They have recently published on their website http://www.weareknitters.com that their company has raises 150,000 euros from some investors: the venture capital firm Cabiedes & Partners and two business angels François Derbaix, Toprural.com founder and Yago Arbeloa, president of the Spanish Association of Investors and Internet Entrepreneurs. The new capital will be use to accelerate the company’s international expansion in Europe.

The company’s online shop sells kits with everything necessary to knit wool and cotton clothing such as sweaters, scarves, hats, etc. They also offer simple video tutorials to learn how to knit from scratch.

In my opinion the most interesting aspects about this company are: Continue Reading…