At Teide Capital, we choose to fund teams that have gone on to build thriving companies.
A good investment target is led by an entrepreneur, is genuinely interested in growth and has diverse competence in technology.
We focus on nearly all types of IT deals but generally exclude the Biotechnology (Biotech), Green technology (Greentech), Nanotechnology (Nanotech), Pharmaceutical innovation (Pharma) and industrial technology sectors. We may add them in the future, but for now we’ve decided to stay focused on tech deals that are traditionally harder to track.
Our value proposition to investors is to access a diversified portfolio of Europe based startups, which would be impossible to achieve by direct investment. International & Europeans investors don’t tend to have much access to funds or startups, other than what they can do on crowd funding sites.
At Teide Capital, we constantly aim at building an exceptional management team to take investment decisions in startup companies. By investing in a Teide Capital fund, you are investing in the qualifications and talent of our team: a mix of financial practitioners, industry experts, and former successful entrepreneurs. Our combined expertise ranges from seed investment to growth equity.
Prior success does not guarantee future returns with any investment strategy or asset class. However, track record is an important gauge in qualifying venture capital fund opportunities. Our VC partners all have previous experiences as successful angel investors or have experience evaluating opportunities and selecting winners. As emerging managers, some of us also represent an exciting opportunity in that we may be more nimble. Leaner and with more to prove, Teide Capital often exhibit a greater drive to generate successful results for our investors.
Track record and network go together. Venture capital firms with the best track records inherently cast the widest net by being in high demand from capital raising entrepreneurs. In this respect, an established VC will have an ear to the ground in one or multiple hotbed locations. Certain of our VC’s have unique business relationships through their industry former experiences. Regardless of the VC’s particular strategy or niche, industry expertise and deal-sourcing capabilities are important aspects for our investors to evaluate.
Venture capital is a business and needs to be run as such. Similar to investing in startups, execution of the business plan requires a full range of operational expertise. Important aspects for VC operations include the ability to structure deals, negotiate terms, and allocate capital. The expertise of the venture capital firm’s legal, finance, and investment sourcing teams should not be overlooked. Investors should evaluate how well-oiled the operations are at a VC before investing in abstract ideas or technologies that are hard for the newcomers to understand.
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