Welcome to our fourth Local Deep Dive email!
🇪🇸 🇵🇹 We are now prepared for the first baby vc bootcamp in Spain and Portugal, but first we would like to wrap up this series of deep dives.
This week, we had the pleasure to speak with Alberto Gómez and we are writing down here some of the things we have learnt. 💫
Join us in these lines as we share what we have learnt from him about how VC in Spain should be shaping up 🚀
🔎 Some introductory notes
Alberto Gomez
Alberto studied Electrical Engineering at MIT and holds an MBA from Harvard Business School. With an extensive professional background, Alberto has held key roles in major corporations such as Telefónica, where he led the Venture Capital division of the telecommunications giant. He has also served as an Executive Director at investment banks Merrill Lynch and Morgan Stanley. Additionally, Alberto was the CFO at Atento Group, a subsidiary of Telefónica, and held roles as an associate at Mc Kinsey & Co. and Booz, Allen & Hamilton. 😎
& Adara Ventures
Adara Ventures is now launching its fourth fund, AVIV, which will continue its successful seed investing across Europe. The focus will be on B2B tech companies specializing in software and data. 💻
In addition to this, Adara Ventures is introducing a new thematic fund aimed at supporting companies transitioning to clean energy. This fund will involve deeper collaboration with industrial LPSs across Europe. It is essential to note that this fund represents a continuation of the same investment thesis that has been pursued over the past 20 years. However, it comes with a specific focus on energy transition, utilizing a different investment vehicle due to the scale of the problem and the associated opportunity. ☘️
🔎 Starting from the early days
When some of the renowned VC firms we now know in Iberia first started, VC was not an easy asset class to understand. Dating back to 2003-2004, VCs faced significant challenges in overcoming skepticism from investors. This skepticism arose not only due to the risks associated with the investment but also because the lack of an ecosystem made it hard for investors to believe that there were enough local startups for the operations to be sensible. 🧐
Some key challenges during this time included the scarcity of co-investors, a limited talent pool, the lack of global ambition among companies, and the reliance on relationships for fundraising. 🙏
Needless to say, this is no longer the case; rather, the opposite is true. Startups have become an attractive career path for many talented professionals with impressive backgrounds who are eager to give up comfort and predictability to build new ventures. This surge in talent keen on participating in the VC ecosystem, coupled with a great appetite to invest in this attractive asset class, has radically changed the landscape in only a few years. The early VC firms had to do a great job evangelizing in this regard, but it more than paid its due. 👏
🚀 Significant shifts in VC moving forward
We know that increased startup activity, repeat entrepreneurs, and the growth of VC firms in Spain are clear trends. Adara Ventures is a prime example of these dynamics, raising multiple funds and expanding its operations. According to Alberto’s opinion, this trend will persist. 📈
Regulation is always a factor to consider in the context of providing capital. However, he believes that the influx of funds and competition will continue to increase.
This surge in funding activity is positive because it should, at least theoretically, translate into greater innovation. In turn, it also means increased competition for funding firms. 🤭
In this sense, VC firms need to be focused, proactive, and value-adding while remaining hungry and helpful to entrepreneurs. It's crucial to remember that VC is a performance-driven business, where success depends on generating good returns and building a recognized reputation. 💸
Another key trend to consider when looking at the future of VC is the impact of globalization on VC relationships, leading to the diminishing importance of geographical proximity. While the fact that globalization erases borders is evident, it is essential to bear this in mind in the VC sphere, given its origins in a very local and small ecosystem. Moving forward, it will no longer be scalable to invest in people acquaintances if VCs aim to invest in category winners. 🗝
✨ Some final comments
How to be a good VC investor?
Whenever we ask this question, our guests find it hard to reply. The hard skills that are needed are more or less clear in everyone’s minds. The top five in Alberto’s opinion are analytical skills, good judgment of character, effective communication, dealing with uncertainty, and attention to detail. 👁
However, an investor might always need a chance of luck when deciding to vouch for an opportunity and support founders in their growth.
As some essential add-ons, humility, willingness to reevaluate assumptions, and a long-term vision might also be of the essense. VC is a long-term game, in which trends change constantly and being able to re-position one’s assumptions is differential.🔮
We hope you have learnt about some historical challenges, positive shifts and future outlook of VC in Iberia!
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Thanks for your presence across these deep dives - We hope you enjoyed them as much as we did!
Chiara, Paula, Jorge, & Justine 💛