Entrepreneurship
&
Innovation.
A shared Passion.
We make startup investing accessible
Faraday was founded in 2011 with the mission to offer small investors efficient access to the best Venture Capital investment opportunities.
We are driven by our passion for entrepreneurship and investment. Our vision is to share this passion with an increasing number of investors in an intelligent, aligned and diversified way, delivering consistently high returns resulting from value creation.
Through our pioneering "Club" model, established in Spain and present in Germany, France, and Benelux, we provide individuals and small groups (our Partners) with the opportunity to co-invest with us in high potential Startups in their early commercial stages. Our unique approach allows investors to select specific Startups to invest in, with minimum investments starting at €2,000 per opportunity. The services we offer to Club Members are structured according to the following model:
Deal Flow
~10 Investment opportunities/year
No investment commitment
Annual fee of €720 / € 1,440
Investment Management
Negotiating & structuring the operation
Investment follow-up & support
Annual management fee of 2%
Empowerment & Exit
Strategic advice & Startup empowerment
Sales optimisation/M&A
Success fee of 10%
Today, we proudly count on the trust of >250 Partners who have collectively invested > €20 million across > 50 companies. Our track record speaks for itself, with outstanding results including 6 successful Exits, underscoring the value and effectiveness of our service, as evidenced by an impressive annual membership renewal rate above 85%.
In 2021 we launched our first diversified fund, Faraday Europa I, EuVECA, managing over €36 million invested by more than 100 private investors. Faraday Europa II, VCF continues our mission, offering access to Venture Capital to even more investors at an ideal time and at reduced entry commitments (€25,000).
If you're seeking to delegate your Startup investments in a diversified manner, aligned with experienced managers, explore our fund. If you prefer to make your own investment decisions, craft a personalized portfolio, and maximize your learning, read on...
Great. How does the Club work?
Deal Flow Generation & Investment Due Diligence
Access to a minimum of 10 investment opportunities/year
Full information for investment decision (Investment Opportunity Report, collective Q&A, video call with Founders, etc.)
No prior investment commitment: minimum amount of €2,000 per investment in each Startup of your choice
Annual membership fee of € 720 (individuals) or € 1,440 (small groups/family offices)
Investment Structuring, Follow-Up & Management
Negotiation, legal/regulatory structuring and closing
Managing legal, fiscal and administrative requirements during the investment cycle
Full and proactive support from our Team with quarterly monitoring reports for each Startup, among others
Annual management fee of 2% on invested capital, reduction from 5th year onwards
Startup Empowerment & Exit Strategy
Strategic and structured support to investees through:
Exchange and promotion of best practices
Leveraging our Partners' networks for commercial empowerment
Advice and support in the financing strategy, design and execution of the company's sales strategies
Additional post-investment liquidity for Club Members compared to other investors, thanks to Faraday's internal secondary market
10% Success fee on realised profit/investment, only if annual IRR exceeds 7%
What Startups do we invest in?
We invest in Spanish and European Startups in their early commercial stages with a strong innovative component. We aim to attain strategic exposure across different sectors, trends, technologies, and geographies. Our main selection criteria are as follows:
Private funding requirements between € 300,000 & € 2M
Min. 6 months of sales and a clear commercial strategy
High potential for rapid value creation through innovation, technology, and capital efficiency
Founders committed to their project, aligned with their investors and having demonstrated strong execution skills with an ethical approach
Potential return of at least 5 times the amount invested over a 3–5-year period
Reasons to invest with us!
Easy & fun
We address the challenges faced by small investors (e.g. limited access to quality deal flow, capital constraints, time limitations & experience).
We provide them with access to exclusive insights into compelling Startup projects – ones that excite us immensely!
Flexibility
Our Club Members are free to decide how much (from €2,000) and in which Startups to invest.
Each Member builds their own portfolio with us, tailored to their individual preferences and investment size.
Integrity, Professionalism & Transparency
We are governed by the highest standards of professionalism and ethics and are regulated by the National Securities Market Commission.
Experience & Track Record
We have been investing in Startups since 2012, with several Exits and failed investments behind us.
Above all, these experiences have provided us with valuable lessons that enable us to continuously enhance our skills as investors.
Networking & Learning
We host exclusive quarterly events where you can interact with the founders of our portfolio companies and key players in the entrepreneurship and innovation ecosystem.
Additionally, we offer workshops and access to learning resources to further enrich your investment experience.
Pick. Invest. Network. Learn.
If you think you might be interested in co-investing with us as a Club Member, please contact us using the form below.
Disclaimer: Startup investments carry risk. Please consult our relevant section here.