CO-INVESTMENT VEHICLE WITH AN INNOVATIVE APPROACH TO INVEST IN STARTUPS IN A SEED PHASE
WANNASEED invests in projects with a global vocation in the validation or seed phase. Entrepreneurs usually have problems to acces to private investment in very early stages. The main mission of WANNASEED is the active participation in recently created business projects with great growth capacity and vocation to become high added value companies, contributing monetary capital and management experience of the members of the vehicle to each of the invested companies.

-Validation phase:
1. Validation of the business model, support in the design and execution of market tests adapted to each company
2. Mentoring Committee for invested companies
3. Support in the development of a strategy that allows the company to increase its market value
4. Management experience of 28 Business Angels
5. Initial legal advice and partner agreement design
6. We strengthen the financial and organizational structure of the investee company
7. Support in the design and validation of roadmap
8. Business strategic plan review
9. Identification of key metrics

-Start-up phase:
1. Support in the search for additional customized financing (R&D projects, grants, business angels..)
2. Possibility of accompaniment with own capital in later rounds
3. Management support under preferential conditions: specialized legal advice, accounting/tax advice, accommodation alternatives
4. Support in the commercial launch
5. Support with communication media
6. Search for potential industrial partners

Resources needed

- Economic resources: Physical and on-line promotion + development of an on-line platform (4k€) + external advice (management, fundraising strategy..)
- Physical resources: co-working space + equipment
- Human resources: full time involvement of the founders + mentors + trainning + network

Evidence of success

We take minority stakes in emerging, innovative projects that demonstrate high growth and profitability potential.

2 investment/year

Portofolio: Neoradix, Spain's Fun, we are on negotiations to invest in a third start-up

Neoradix:
1. Neoradix constitution
2. Partnership agreement
3. Capital Expansion
4. Monitoring Committee: 2 people
5. Start validation campaign Crowdfunding: Specialized advice
6. Generation of knowledge, contacts and recommendations
https://hexaradix.com/

Difficulties encountered

1.Hard to get applicants for the calls. / make agreements with BANs, BICS, accelerators,...
2.Difficult and time-consuming to deal with startups in so early stages
3.Differences between partners & founders
4.It is important to set a maximum period and to standardize the investment agreement

Potential for learning or transfer

All the procedures are clearly defined, the platform has been working during several years, there is a lot of interesting contents and contacts available that can make easier the management of the fund in the daily routine.

There is possibilities of make a good deal in a very early stage
An early stage fund helps entrepreneurs to get smart money since the launch of the business.

A pre-validation procedure reduces mutual frustration problem between investors and entrepreneurs.

At the same time, an early stage fund can open indirect business opportunities and contribute to the launch of new interesting projects.
The effort needed in the launching stage of the fund can help to identify new high quality entrepreneurial sources.

It allows to not experienced investors to learn and diversify risks.
Main institution
Centro Europeo de Empresas e Innovación de Murcia
Location
Región de Murcia, Spain (España)
Start Date
January 2016
End Date
Ongoing

Contact

Esther Peñalver Please login to contact the author.