Frequently Asked Questions
Kibo Ventures aims to become the partner of choice for Spanish entrepreneurs with ambitious, global projects, helping them to build international-scale companies.
Kibo Ventures normally joins as the first institutional investor, leading or co-leading pre-Series A and Series A rounds with initial tickets between €1m and €2m. Occasionally we invest lower and higher amounts at earlier or later stages
Is the perfect time, as we take growth risk.
Kibo Ventures will act in most cases as lead or co-lead investor, mostly depending on the value added by the rest of the investors and the size of the round.
However, in opportunistic investments, Kibo Ventures’ role can vary depending on the specific conditions and context of the opportunity.
Definitely yes, most of the companies we invest in have been in our radar for some time, some of them for years, sharing info and progress until both parts decided was time to partner.
We are sector agnostic and want to be present in the most dynamic companies.
We have so far invested in SaaS, AI, Machine learning, consumerapps, marketplace, Travel, e-commerce, Cybersecurity, IoT,Gaming, etc.
First of all, we look for companies that understand a market and have the knowledge and insight to know how it`s going to evolveand how to take advantage from it.
We look for passionate and outstanding teams which know how difficult the journey will be, that it will require sacrifice but also that you will enjoy it and be able to deliver.
Thirdly, we look at your early metrics to understand if the idea is in place and if the strategy to achieve results makes sense.
Yes! Although based in Madrid, Stoyo, Iguama, Hole19 or Vylinx are some of the international companies in which we have invested so far. However, our main focus is with Spanish entrepreneurs, regardless where they’re based.
We adapt our investment process to the needs of the company, meaning we can be very fast making decisions.
From Term Sheet to closing expect at least 2 months. Due Diligence and legal work are needed before we close the transaction
•Team – Committed and experienced management team,incentivized by a substantial equity share, with the vision and ability to execute and bring the company to the next level.
•Market – Companies operating in a non-saturated market, which is large enough for a number of competitors to co-exist.
•Product – with a heavy technological core, offering a scalable and disruptive solution to a specific problem.
•Monetization – Revenue Lines and potential business models (not necessarily in place)
•Financial model/Business Model – Companies that are not capital intensive to launch product / service and have potential to develop a profitable model
•Growth potential –The project needs to be scalable and have the potential for rapid development.
•Competition/Distribution – The team will be aware of the competition and will have a clear go to market distribution strategy and a defined, differentiated value added proposition
•Exit strategy – Identifying from the beginning exit options.
At Kibo Ventures we are proud to seriously evaluate more than 1,000 projects every year. Ideas can come from anywhere. You can cold call us and share the info of your project.
However, if you have a direct referral don’t hesitate to use it, this includes Business Angels, other portfolio companies, investors…
Our typical initial ticket ranges from €1m to €2m, but we have a flexible approach depending on your financing needs.
In exchange, we normally seek stakes between 10% and 25%.
As part of our strategy we reserve money for follow-on investments and we can end up investing between €7-10m per company.
As a general principle we don’t believe in complex legal terms.
We need to have an agreement that covers main minorityprotections (tag-along, drag along) and protective provisions, with a 1x liquidation preference.
No. Our ideal ownership is roughly 10% to 20% after our first investment.
Transparency. Trust. Support.
Once you become a member of the Kibo Ventures’ family, you can ask and we will try do our best to help you grow your business.
To be more concise, we normally help companies in:
– Structuring of company processes: When the first investment ina company is made, one of the first steps is to establish orhelp to establish their internal management reportingsystems. These include board, financial, accounting, legal,tax processes…
– Strategic advisory: Advice and support are provided both within the board of directors and through specific meetings. Assistance is focused on marketing, strategic advisory, team, growth and internationalization.
– Human resources: Support for attracting talent is key, since these companies are extremely sensitive to human capital.We help companies completing the teams with key managerial, board and technical positions.
– Funding: Kibo Ventures helps its portfolio companies when seeking new funding by (i) helping prepare the relevant materials and bringing external advisors, (ii) providing support in negotiation, and (iii) facilitating introductions to other domestic and international venture capital firms, based on the specific needs of the company.
– Exit strategy: is a key challenge for the companies and it’s fundamental to think of the exit strategy at the time of analyzing the investment. Kibo Ventures generates collaboration with potential buyers, structuring the company,its processes and metrics, in order to make them more attractive to a buyer, provides support, and actively participates in negotiations to facilitate the sale of the company.
Kibo Ventures’ portfolio companies have raised +€300m in financing rounds in more than 200 deals.
We have +40 international co-investors, including top tier international VC’s and corporate VC’s.
We have a broad presence in the international ecosystem and devote time to understand and search for new investors.
We look for co-investors to help internationalize the companies, and to provide specific industry expertise and/or relationships to further develop the companies’business.
Best way to understand it is to talk to any of our entrepreneurs.
Yes, sometimes we take Board seats, but is not a requirement.
As a general principle we believe that one board member per round is enough.
For general questions email firstname.lastname@example.org. Will try to get back to you asap!