The Spanish manager GED takes another step in the diversification of its strategy and adds a new line of business. As the Economist has learned, the firm has just launched a new vehicle, Conexo, focused on the venture capital business (seed capital). Through it, GED will select about 20 companies in the Iberian Peninsula in which it will invest in order to grow and expand its business globally.
However, they do not rule out making any of these investments in startups in other countries based on market opportunities. This new vehicle has an objective size of between 40 and 50 million euros and will be coordinated by a team of five people specialized in this type of investment. The partner responsible for this new area of GED is Joaquim Hierro, who will be supported from the United States by Isaac de la Peña and Damien Balsan, well-known experts in the venture capital industry.
By sectors, Conexo seeks opportunities in the digital world, especially in companies that use software or artificial intelligence to develop their growth. Also, in sectors related to marketplaces, cybersecurity or finance and insurance, among others. As for the investment strategy, the new GED fund wants to invest in companies that have “a product tested with a certain number of customers, turnover of at least one million euros a year and that is scalable globally, especially to United States, “explained the partner responsible for the new GED line of business to this newspaper. The investment ticket will be 2 million euros per company.
After several months of project analysis, it was in July when GED was encouraged to set up the fund and made the first closure at the end of September with commitments worth 20 million euros. Among its investment base are institutional, business and family offices.
For now, the manager has already closed three investments with Conexo, although it has a very large portfolio of projects that will materialize in new operations in the coming months. In this sense, GED has invested in Bnext – the first marketplace of financial, insurance and travel related products in Spain, which offers the possibility of having an account and a card not linked to a bank; Buguroo -a cybersecurity startup specialized in the banking sector-; and Kushki – a payment platform focused on Latin America.