Venture capital accommodates in the increasingly high rounds, but anticipates an end of the cycle

  • The 4YFN highlights the good investment moment and the European aspirations to multiply the number of ‘unicorns’

It is definitely a good time to attract investment. This is shown by the latest data available on the fabric of Catalan start-upswhich obtained with fewer rounds than a year ago almost three times more money in 2021. This is also demonstrated by the Spanish x-ray, which reflects that the venture capital of the country beat its own investment record last year. This is attested to in turn by the European figures, which more than double from one year to the next and which also break their own ceiling. And so they have confirmed on the stage of the 4 Years From Now (4YFN), the show of the start-ups of the Mobile World Congressvarious funds involved in the sector.

The rounds, have indicated three representatives of seedcamp, gp bullhound and Elaia, are getting higher and higher and the situation is so favorable that they are not even afraid of macroeconomic ups and downs or the situation in Ukraine. “Companies are not going to run out of investment & rdquor ;, has assured the head of GP Bullhound in Spain and Portugal, Miguel Kindelan. “There is a lot of capital that needs to be placed & rdquor ;, has indicated the partner of Seedcamp, Sia Houchangnia. “We are still in very high ranks, there is still a lot of capital and that is good because that way entrepreneurs have more margin to decide who to associate with,” Elaia’s partner has completed, Pauline Roux.

Added proof that the fabric in general is aware of this, are the various mentions in this regard during the three days that the congress has been running. From the reminder that 70% of the start-ups exhibiting at 4YFN seek funding at one of the opening sessions, to the recognition that the European Alliance of Startup Nations (ESNA), also presented at the event, largely seeks to double the number of unicorn companies -tech companies valued at one billion dollars- in the European Union. The Minister of Business and Employment of the Generalitat, Roger Torrent He also recalled yesterday in Mobile that Catalonia aspires to go from its current six unicorns to 15 and the founder of Glovo (one of these companies), oscar pierrewas convinced that in five years Spain will go from its current 12 to 50.

investment in advance

The point is that after such a steep rise, the descent is a matter of time. In fact, as Roux explained, if optimism prevails, it is because the majority of active funds in the market have vehicles with investments made in the last three years. “We have no pressure to invest because we have invested in advance, but we have to be alert for when the curve goes down & rdquor ;, a fall that this investor takes for granted and that has anticipated that it will affect companies about to be sold more ( more sensitive and dependent on the valuations given by the market) than start-ups that have just raised capital.

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That said, his counterpart at Seedcamp, a fund that invests precisely in early-stage companies, has assured that even in this segment the volume of rounds is growing, but that has not brought them setbacks: “We are more certain today than yesterday that that divestments will also be greater”.

As for the sectors, none of these three funds has planned major changes in script this year in relation to the previous ones. The star sector will be softwareespecially that which is offered as a service (Saas) and solve business problems. Beyond that, Kindelan’s bets are that mobility and technology around travel will once again gain much prominence. “The rebound is going to be massive” in this sector, has assured the director of GP Bullhound.

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