Faraday launches €40m venture capital fund

The fund targets an IRR of more than 25% for its investors. It plans to take advantage of new technologies, consumer trends and business practices.

The VC hopes to hold a first close for the fund by December 2020 and start its investment period in January 2021.

"This is the best time in history to invest in venture capital, and particularly in early-stage highly innovative European companies," says Gonzalo Tradacete, founding partner of Faraday. "The current dramatic pandemic has accelerated the need for innovative solutions with new trends, threats and aspirations. We are facing the imminent creation of new markets, products and services with a common denominator: a strong need for financing and leadership."

Investors
The fund intends to build a wide base of LPs, from both Spain and the rest of Europe, primarily family offices, tech corporations and institutional investors.

Investments
Faraday Europa I will invest in early-stage startups with potential for high growth and rapid value creation. Target companies will specialise in developing products and services able to address the new needs emerging from the pandemic, and capable of leveraging the hyper-digitalised post-Covid-19 environment.

The fund's strategy will guarantee geographic and sector diversification, with exposure to tech ecosystems across Europe.

According to the firm, the vehicle's portfolio companies will benefit from its expertise, track record and network of contacts and investors.

Faraday has been operating in Iberia for nine years, investing in numerous companies including Codigames, Habitissimo and Bodeboca. Faraday also has a presence in Germany and Portugal, and plans to expand in Poland and Belgium next year.

Around half of the portfolio companies will be based in Spain, while the other half will be located across the rest of Europe, with a special focus on Portugal, as well as Benelux, DACH and CEE.

People
Faraday Venture Capital – Gonzalo Tradacete (founding partner).

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