According to the internet it’s thousands of startup accelerators programs & incubators out there, looking for the most talented startups to accelerate.

What started with Y-combinator back in 2005, was followed by Techstars, 500 startups and a couple of thousand other organizations which now all are competing for the same talent, according to Angel Garcia, director of Startupbootcamp IoT, Data & Cybersecurity in Barcelona.

It’s turning into a very crowded space, it’s much harder to find good startups for every round we do.

He continues:

Online I’ve seen lists of thousands of so-called accelerators. Many of them provide mentors, a table to work at and other perks, but they don’t run sustainable businesses.

From the left: Angel Garcia (Startupbootcamp) Patricio Hunt (Intelectium) & Bernat Farrero (itnig).

The business model

Just like venture capital investors, both accelerators and incubators are betting on a large volume of projects, and hope one out ten get’s a big exit.

That’s why it’s hard to say exactly what accelerators that are successful and which that are failing, says itnig president Bernat Farrero and points to the business model:

In practice, we’ve had virtually no time to see any of this models succeed just yet, even the few biggest ones have kept growing their expectations and none has yet consolidated and shown a real business success case.

Unlike most accelerators that are funded by VC’s, Startupbootcamp is funded by corporations that all get access to the products the different startups are creating, according to Garcia.

We’re different from most of the accelerators out there. It’s not only our business model, but 82 percent of our startups that have gone through our program is still going, and that’s a high number.

Evolving into venture builders?

Both Farrero and Hunt used to run accelerator programs, but later chose to leave the space to dedicate a deeper focus on fewer projects.

President Farrero explains that itnig didn’t find it sustainable to have a large number of startups go through a fixed program:

If we look at all of the accelerators today, both the ones we call successful, and all the others, I’ve never heard of anyone being profitable.

Startup studios or venture builders has been gaining more and more tractions lately, with studios like eFounders, Betaworks, Idealab & itnig pumping out new companies annually the last years.

Also Patricio Hunt, managing partner at Intelectium has been transitioning over to an approach of building talented teams, instead of accelerating already existing startups.

We have, as Farrero, evolved into more of a venture builder the last years. We study the markets, talk with corporations and possible future customers, and create products we know are needed.

Talent-focused

Farrero says their approach has changed drastically the last years, they now focus on finding makers:

Instead of using valuable time on accelerating tons of projects, we are using that time to study the markets and current trends, as well as attracting the best talent to come work for us.

Even though Startupbootcamp is working with a different business model, also Garcia stresses the importance of knowing your markets.

As we work in industries where everything is changing very fast, we need to understand the markets better than most people do.

The amount of accelerators getting started is not decreasing, but as the amount of programs increases, the less credibility the accelerator gets.

All the three directors agree that the few accelerators with an established brand will survive, and so will the ones that have implemented sustainable business models, but the rest will have to pivot or innovate into something new, something startups actually need.

To get the full interview, go to the video in top of the article.


The post was written by Sindre Hopland, media manager at itnig.

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I.

Investment Funds for Startups in Barcelona

You have an early-stage project ready for success, but chances are, you need funding. Without funding, reaching success is very hard, not to say almost impossible. If you are confident enough and ready to share your project with the rest of the world… Located in Barcelona, here are Tech Investment Funds for startups you can reach out to.

Man shaking hands after an investment agreement

Galdana Ventures

Galdana Ventures logo

Galdana Ventures is a €900M fund founded in 2015. They are investing into a portion of the top level firms in the Unites States, Asia, Israel and Europe. The companies in which they choose to invest must have a competitive advantage in order to distinguish themselves. In addition, the team has over 100 years of experience in entrepreneurship and investment. 

Apply to the Fund: You can either contact them by phone +34 93 187 03 16 or by email.

ABAC Solutions

ABAC Capital logo

ABAC Solutions has been investing approximately €320M since 2015 into Spanish medium-sized organizations. The founders are disciplined investors. Therefore, their investments are well thought, and their interest must be aligned with their investment criteria. You need to make sure you check all the boxes before applying.  

Apply to the Fund: In order to get in touch with ABAC Capital, you need to complete this form.

Nauta Capital

Nauta Capital logo

Since 2004, Nauta Capital is looking for passionate entrepreneurs who are looking for a challenge which is achievable with limited funding. The enterprise is passionate about capital-efficient disruptors that are reimagining large industries where technology has had limited impact. Additionally, they invest into European B2B software companies. They are eager to find motivated and innovative teams. 

Apply to the Fund: You can either get in touch with one of Nauta Capital’s employee or reach to them through their application form.

Inveready

Inveready logo

Active since 2008, Inveready invests into early-stage technology based companies. More particularly, they invest “through 4 verticals: Venture Capital in Digital Technology, in Life Sciences, Venture Debt and Hybrid Financing“. They detain more than €400M of assets under management. In 2017, the enterprise received the Best Venture Capital firm in Spain.

Apply to the fund: You can send your deck here.

Lánzame Capital

Lánzame logo

Lánzame Capital is a pledge fund which invest into startups. The fund is detained by private investors who all come from different industries. They believe it can sometimes be difficult to obtain a fund for your project. This is why they created this platform in order to build a bridge between entrepreneurs and investors.

Apply to the fund: The investors will consider your project once you have send it here.

VentureCap

VentureCap logo

Venture Cap was founded in 2000 and has been investing into growing startups since then. The fund was created by entrepreneurs who wanted to transmit their knowledge to new teams as well as helping them accelerate their growth. Being apart of the investment funds for startups in Barcelona, VentureCap looks into 4 sectors: E-commerce, Health, Technology and Education.

Apply to the fund: You can contact them here.

NERO Ventures

Nero Ventures logo

Nero Ventures is a venture capital fund which focuses on technology-based companies.They help them creating value and realising their business vision. The firm invest into early stage startups. More precisely, they either invest into “Enterprise software technology B2B” or “Consumer software technology B2B2C“. More information on their website.

Apply to the fund: They would prefer if you are recommended by someone of their knowledge. You can get in touch with them by phone + 34 933 65 81 78.

Itnig Fund

Itnig logo

Itnig Funds invests 100.000€ per company and they offer their support without getting in the middle. They focus on understanding the market opportunity and making sure they fully align with the team. Moreover, they look for intuitive and fast movers, talent developers, hard workers, customer oriented, bottom line focused and growth obsessed. All at the same time!

The Pitch to Investors event is linked to Itnig’s Fund. Every Thursday, entrepreneurs have the opportunity to pitch their project in front of investors and an audience. You get an instant feedback from investors. Afterwards, you have time to network and have a beer.

Apply to the Fund: You will need to go to their website and apply as an entrepreneur. Then, they will send you a video interview request by email – you will answer to questions pre-registered. After that, they might invite your to the Pitch to Investors. Investors will get back to you if the project catch their interest.

To sum up, these investments funds are always looking for a unique project which detains the one competitive advantage on the market. We hope the investment funds for startups in Barcelona will be in your favour. In other words, good luck with your project and thank you for reading!

#Startups Barcelona #Funds startups