The first half of 2014 confirms the reactivation of venture capital in Spain
14/07/2014
Diego Gutiérrez
The first half of 2014 confirms the reactivation of venture capital in Spain
Venture capital in Spain raised a total of €1,197.7M in 2014 in 219 deals, 132% more than in the first half of last year. Among the reasons that have helped to achieve these figures are the new funds raised in 2014 and the interest of foreign investors in Spain.

Transactions of less than €5m are predominant.

90% of the transactions in this period were transactions of less than €5M, in start-up and expansion stage companies.

"It is worth highlighting the increase of operations in the expansion phase, according to Ascri data, after two years recording a low volume, in the first half of the year it grew by 45% capturing a total of 495.5 M€" confirms Diego Gutierrez, expert in alternative financing of the group. Abra-Invest.

Only 4 Four deals exceed EUR 100 million of invested capital, such as the buy carried out by the group of private equity French Eurazeo of the 10% of Desigual 258M€.

Sectors in which most investment has been made: consumer sector

The sector with the highest volume of investment The sector's main product sector has been consumer products, accounting for 41% of the volume. buy of the textile firm's 40% Gocco by Diana Capital or the sale of Rotor, The Spanish manufacturer of high-end components for bicycles to   ProA Capital by $10M. This is an indication that the investors expect an increase in consumption, which has been so badly hit in recent years.

The FMCG sector is followed by the Hospitality & Leisure and Energy & Natural Resources sectors.

New funds raised

In the first half of 2014 the new funds raised exceeded €2,134.6m. This represents a growth of 315% compared to the first half of 2013.

54% of the new funds were raised by private national operators. One of these funds is  Caixa Capital Micro II, la caixa's new €9m investment fund to invest in innovative companies.
5% (€108.5M) by domestic public operators and the remaining 41% (€879.1M) were application of international funds to their investments.

Fond-ico437m to a total of 14 Venture Capital entities, which, with the multiplier effect on other investors, will result in commitments of investment 1,325m.

Venture capital in Spain raised a total of €1,197.7M in 2014 in 219 deals, 132% more than in the first half of last year. Among the reasons that have helped to achieve these figures are the new funds raised in 2014 and the interest of foreign investors in Spain.
2014-07-09
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Venture Capital
Venture Capital
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diego
dgz@abra-invest.com
Diego
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Venture capital has reached SMEs
The government wants to improve access to direct financing for SMEs. To this end, this Friday it approved the draft law regulating venture capital entities and closed-end collective investment entities, which includes the creation of the figure of Capital-Riego pyme and a series of reforms in venture capital entities that establishes the harmonised framework of conditions for authorisation, marketing, conduct and organisation of the managers of these investment funds at European level.

SME Venture Capital

The project envisages that these identities will invest at least 70% of its assets in SMEs and will be involved in managing and advising them. In return, they will benefit from a more flexible financial regime, such as greater use of equity loans, more flexibility in the calculation of compliance deadlines for the mandatory investment ratio and the possibility for venture capital funds to distribute results on a regular basis.

"This legislative initiative joins the initiative of Fond-ICO by which the Government has opened several calls for co-investment with private venture capital mainly oriented to SME growth projects and investments of the type venture capital is for high-growth companies," says Diego Gutierrez from Abra Invest.

New adjustments to risk capital identities

The new regulation envisages the reduction of administrative burdens by maintaining the authorisation regime exclusively for their managers. Venture capital and private equity investment The closed-end collective investment schemes will be subject to a simpler regime of simple registration with the CNMV (Comisión Nacional del Mercado de Valores).

Structure and organisational requirements are also envisaged to ensure control of risks, liquidity and conflicts of interest.

In addition, the remuneration policy, which shall be approved by the management body and periodically evaluated, must be compatible with the company's business strategy.

The marketing of VCs is limited to eligible investors, investors 100,000 and declare in writing that they are aware of the risks associated with the intended commitment.

In addition, the regime for cross-border marketing and management of mutual funds is also included. investment alternative investment funds managed by European and foreign management companies, thus promoting an internal market for alternative investment funds.

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