Friday, November 22, 2019
Business Finance Report
You need to conduct a research on equity capital available for new ventures in your home country and prepare the report. à 1) An introduction explaining major sources of equity capital for new ventures, such as 2) Describe all main BA, VC and PE firms in your home country (their structure, history, approach, number of deals, total amount of capital raised, etc.) ââ¬â all factors you may consider appropriate to have a better understanding of their activities. 3) Summarize BA, VC and PE firms in your home country in the following table:à Sectors: list all the sectors in which they invest (e.g. high tech, tel , agriculture, etc.) Website: Give the link to the website 4) Give your conclusion on the situation with equity capital in your home country and perspectives for the future. You are required to prepare the report based on the results of your research and analysis. The report should contain: tables of contents, introduction, analysis and conclusion. The studentââ¬â¢s work will be assessed by analytical abilities, deepness of research, solid judgments, logic of statements, and understanding of implications of finance and business. à Business angle are individual investor who finance new start-ups from his own fund directly. He /she are independent financially i.e. his profit or loss will not hamper the whole economy of a country. They do not have any family relation with the startups. They make their own investment decision, which is final[1]. Their investment varies from medium to long term depending n the case. Venture capital was first introduced in the 20th century, which means risky capital. It supports new ideas that are very risky but have high profit and growth. It is a type of equity financing which is very long term. There is a liquidity problem in venture capital as during the startups the project is expected to run for several years. It involves high technology and enjoys capital, which is the main benefit when the business succeeded[2]. It does not take a dividend in the intermediate stage. It also participate I the management o the entrepreneur and give expert advice besides monetary support. Private equity is a class of asset that consists of various securities, which are invested, in panies to generate high values. There are various types of Private equity like leveraged buyout (LBO), venture capital, Mezzanine capital and growth capital Growth capital refers to small amount of investment in the equity of a matured pany to help it expand its capital base or increase its market share without any changes in the management control of the pany[3].à à In this section detailed analysis of various BA, VC and PE in Spain will be done and their impact on the new ventures will be discussed. In Spain, many business angle brokers support startups. However, top 10 are: Carlos Blanco: He is one of the greatest business angle in Spain. He is the cofounder of a gaming pany named Akamon Entertainment. He is also the CEO of Grupo ITnet. He has invested in many panies like Infantium or Kantox. Yago Arbeloa: He is the brother of Spanish footballer Alvaro Arbeloa and is in this business from the year 2010. He has invested in panies like Reclamador, Percentil and Really late Booking. He is also the president of AIEI and media group of Hello[4]. Francois Derbaix: he is the most active angle business in Spain. He has given support to almost 21 panies in past year, which includes Startupexplore, Tiendeo and unitae. He is also the co-founder of Toprural and Rentalia[5]. Currently he is running Soysuper. Every entrepreneur must read his personal blog before starting up a venture. Jesus Encinar:à He is called the founder of Idealista. He also invested in Spanish startups like Etece and AsesorSeguros. He is the advisory board member of Seaya Ventures, a venture capital firm founded by Micheal Kleindl and Beatriz Gonzallez, which has invested in panies like Ticketea and Cabify since 2013. Bernando Hernandez: Previously he is the director management of product in Google and currently he is running the product division of Flickrââ¬â¢s. He is the one of the initial investor of Tuenti that is a social networking site purchased by Telefonica[6]. As an angle business investor he has also funded Mad Video and Mola . Jesus Monleon: He has a lot of expertise and experience in investing and creating various panies. He has founded Emagister in 2000 and recently founded Offerum. For 7 years he has worked in Caixa Capital Risc as an venture associate backing both early stage and mature panies[7]. As an angel business investor, he has funded panies like DADA panies, Chicfy and Deporvillage. Axel Serene: He has at least 20 years of knowledge in the business of internet and is the Chief Executive Officer of Vittalia. As an individual investor, he has funded and backed various panies like Tiendeo, Popplaces and Akamon. He is a Barcelona based investor. Walter Kobylanski: He is the co-founder of panies like Gigas based in Madrid. He and his brother Christian has founded an investment vehicle known as Danka Capital that is backing panies in its early stages[8]. As an individual investor he has funded panies like TouristEye, Ducksboard and Jugo. Martin Varsavsky: He is very famous for inventing and promoting tech juggernaunts like Ta and jazztel. Recently he has fuended Fon-Martin that is an active investor for startups over the past decade[9]. With the help of Jazzya Investment he has supported more than 30 panies like Hootsuite, Meneame and Tumblr which was purchased by Yahoo for $1 billion in 2013. Juan Margenat: He is the co-founder of Marfeel, which is a based in Barcelona. He is also the advisor of Conector. Previously he founded Plan B and Weekendesk Iberia. He has also invested in Habitissimo and fintech darling Kantox. Top 10 Venture capital firms supporting new startups in Spain are as follows: Axon Partners group: Unlike most of the other Spanish venture capital firms is focuses on international market and has office in Spain, Colombia and India. In addition to funding the startups, it also gives consultancy services to panies in which it does not have a holding. In the year, 2010 Party Gaming was merged with this Venture capital firm[10]. Since 2013 it has funded 8 panies raising an à amount of euro 23.9 million. Cabiedes & Partners: It is one of the most famous VC firm in Spain, which have backed more than 40 panies within the country. It was founded in late 90s and is run by Cabiedes brothers. The firm has raised euro 30 million funds in 2014 and focuses on performance and key metrics[11]. It has entered into 17 deals since 2013 raising an amount of euro 25.2 million. Kibo Ventures: Telefonica chose it so that it can manage its Amerigo fund which aims at Latam and Spanish startups. It has entered into 16 number of deals since 2013 raising an amount of euro 24.7 million. It has its head quarter in Madrid and was founded in 2011 Nauta Capital: Like Axon, it also has an international base. It has offices in London and Barcelona. It backs panies, which is at its growth-stage[12]. It hasà raised 100-150 million Euros in 2014 and invested in 30 startups within Spain, US and UK. Since 2013 it has entered into 7 deals raising a fund of 35 million euro.à Vitamin K: It is based in Madrid and invest in internet panies and technology which are at its early stage. It is run by Rafael Garrido and has funded at least 10 panies since it was founded. It has entered into 6 deals since 2013 raising an amount of 6.2 million euro. Active venture partner: Their policy is to invest 80% of its funds in Spanish startup and rest are allocated to European countries. It is one of the key funders of BuyVIP, the online shopping pany, which was purchased by Amazon in 2010 for $110 million[13]. It has entered into 4 deals since 2013 raising an amount of 14 million euro. Bosnai Venture capital: It is the oldest venture capital firm of Spain, which was founded in 1999. It invests in panies, which are at its early stage, and its portfolio has startups like Wallapop. It is one of the oldest funders of Idealista[14]. It has entered into 2 deals since 2013 raising a total fund of 3.87 million euro. Lanta Digital Ventures: Angel Garcia founded it in 2013, a very experienced entrepreneur who was previously the Chief finance Officer of a technology pany named Fractus that was the main developer of mobile phone. It has entered into 2 deals since 2013 raising a fund of 50k Euros. Seaya Ventures: Beatriz Gonzalez daughter of president of BBVAââ¬â¢S and Michael Kleindl founded it, which helps panies at their growth stages with an approximate investment of 10 million Euros[15]. It has entered into 5 deals since 2013 raising a fund of 23.4 million Euros. Caixa Capital Risc: It is the most active investment vehicle in Spain. Since 2011, it started funding technological panies and has a portfolio of almost 100 panies including La Caixa which was the most friendly startup banks in Spain. It has entered into 18 deals since 2013 raising an amount of 202 million Euros. Top 5 Private equity firm in Spain are as follows: à Magnum Partners: It manly focuses and invests in Iberian region. It targets all the middle level to upper middle level panies in Portugal and Spain. Portobello Capital: It is Spanish based private equity firms that invest in new ventures and startups, which have high growth aspects, but risk factor involved is very high. Mercapital Servicios: it supports the middle size panies in Spain by steering their process of internationalization[16]. It also invests in panies in Latin America who wants their development to speed up N+1: It supports the existing ventures that are willing to extend their market base and diversify in different sectors. They support panies who are setting up new units or expanding its exiting setup. MCH: It invests in panies who are willing to introduce new technology in the market. They not only provide funds to these panies but also give them expert advice relating to technological development.à https://www.linkedin /in/yago-arbeloa-2448623 https://es.linkedin /in/kobylanski https://www.linkedin /in/martinvarsavsky https://es.linkedin /in/juanmargenat Digital marketing, Online Advertising https://www.linkedin /in/jesusmonleon https://www.linkedin pany/axon-partners-group https://www.crunchbase /organization/cabiedes-partners https://www.crunchbase /organization/kibo-ventures www.nautacapital /news/nauta-iii www.webmd /vitamins-and-supplements/supplement-guide-vitamin-k www.bonsaiventurecapital /en/node/7 https://www.linkedin pany/caixa-capital-risc www.bloomberg /profiles/.../3407468Z:SM-mercapital-servicios-financieros-sl Storm water discharge, Scrape Recycling mch.aarogya /mch/what-is-mch/12-over-all-mch-and-health-sector-situation.html From the above discussion, it can be said that BA, VC and PE have changed the face of startup venture all over the world. In the recent year BA, VC and PE has grown at lot in Spain supporting new ventures and technologies, which involves high risk as well as high growth. It not only supports news startup panies with fund but also provide them technological and expert advices. Now a days, they are also involving in the management of new ventures which was previously not a tradition. Almost 10 BA, 10 VC and PE has been discussed in this report which gives an overview that this BA, VC and PE are focusing on every industry and giving financial and other assistant to panies who need support. Startup ventures, which previously used to struggle to enter into the market with new schemes and technology because of lack of fund are now a dayââ¬â¢s supported by this BA, VC and PE with investment. This new ventures are now getting a platform to highlight their talent in the market. Their success and growth rate has also increased a lot during these years because of these BA, VC and PE.à à Baldock, Robert, and David North. "The role of UK government hybrid venture capital funds in addressing the finance gap facing innovative SMEs in the post-2007 financial crisis era."à Research Handbook on Entrepreneurial Finance(2015): 125. Business, Small, and Tourism Branch. "ARCHIVEDââ¬âFinancing With Venture Capital: Advances in Knowledge Over the Last Ten Years and Research Avenues References." (2012). Cumming, Douglas J., and Sofia A. Johan.à Venture capital and private equity contracting: An international perspective. Academic Press, 2013. Demaria, Cyril.à Introduction to Private Equity: Venture, Growth, LBO and Turn-Around Capital. John Wiley & Sons, 2013. Dutta, Supradeep, and Timothy B. Folta. "A parison of the effect of angels and venture capitalists on innovation and value creation."à Journal of Business Venturingà 31, no. 1 (2016): 39-54. 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