He is one of the most popular investors in Spain. His high volume of deals, proven successes, and the clear way he communicates his ideas have built his reputation. Carlos Blanco, founder of Nuclio and Encomenda, is a leading figure, and he will welcome attendees at the Cornellà Creacio Forum for a noon conference this Friday.
The conference carries the title How to Seduce an Investor. Are there keys that unlock this art?
To answer, the first step is to distinguish between a viable company and an investable one. A small or medium enterprise that grows twenty to thirty percent per year may be a strong business, yet professional investors typically seek firms that can grow from sixty to a hundred percent annually. Investors gravitate toward high growth companies that bring a technological edge. It is understood that the majority of startups fail, yet the aim is to identify those few that show explosive potential to become strong rockets. Often, many rockets will fail, a few will perform adequately, and only one will become truly outstanding.
What defines a company that private investors would nurture? It should be a startup, not merely a newborn company, and it should be a technology-driven venture started by entrepreneurs with strong performance drive. The leader is the first factor, followed by the market, and then the team. When a company is already in more mature stages, the metrics and business plan take center stage. As a seed investor, early-stage funding hinges on whether the business plan demonstrates realism and organization. A careful note is that some plans tend to overstate outcomes. In the history of Spain there has never been a startup posting twenty million euros in turnover within four years, and encountering such plans can reveal either a misunderstanding or a lack of information.
No startup in the history of Spain has achieved a turnover of twenty million in four years; a founder with such a plan may be misguided or uninformed.
Is there a sure sign that a team will likely succeed? Not a fixed math formula. The only reliable math is that profitability often comes from quantity. Building a portfolio with more investments increases the chance of success. A practical approach is to classify investments as A, B or C based on initial expectations. Real data shows that only about twenty percent of major successes began with high expectations, roughly forty percent grew from moderate expectations, and the remaining forty percent arose from ventures with lower initial expectations.
How is the investment market performing after the post-pandemic correction? It has moved back toward normality and steadiness. Valuations inflated during the pandemic are receding. During the Covid period, many Nasdaq-listed companies surged to valuations that seemed extreme, and a wave of wealthy individuals invested with varying levels of discernment. This contributed to inflated expectations and volatility.
Saying what the 2023 closing figures will be is not simple. It is likely to show a dip from 2022 since the first half of the previous year was unusually strong. However, comparing with 2018 or 2019 offers a more balanced perspective. The market experienced a downturn, and major European funds that invest in IPOs slowed down the flow of money by significant margins. As a result, some companies continued seeking financing to avoid collapse rather than seeking new investments.
Does this indicate a looming crisis? The startup ecosystem has faced a challenging period for about eighteen months. Entrepreneurs have had to adapt, pivot, and sometimes reinvent themselves while preserving cash. In such an environment, cash management has taken precedence over aggressive expansion.
What impact does this have on plans to organize larger investment tours in Spain? The pace has slowed, and the number of deals has decreased. With funding cycles evolving, organizers are adjusting expectations and timelines to focus on sustainable growth rather than rapid expansion.
Does the need to apply for European funding reduce competitive edge? On the contrary, a disciplined funding strategy can be a strength. Starting with a Spanish seed fund, then a growth fund, and finally an international fund creates a steady, healthy pipeline. For companies aiming to grow internationally, attracting investors from target markets can be invaluable, as they bring market insights and connections that ease expansion and lobbying in new regions. Building a large, international company benefits from engaging with global investors who understand the required markets.
What issues should be addressed to strengthen the Spanish investment ecosystem? Real tax incentives for early-stage investments could spur activity. There are rules allowing tax deductions for investors in startups, but these rules have complexities. It is important to ensure the system supports genuine early-stage ventures rather than penalizing entrepreneurs who start from personal resources. Clarity and fair incentives can help more individuals join the startup scene and contribute to its growth.
Is there a shortage of startup success stories? There are stories to tell. In other nations, individuals like Oscar Pierre would be celebrated publicly. In Spain, there is more scrutiny, which underscores the need for a supportive environment that recognizes achievement and encourages future breakthroughs.
What have been the biggest accomplishments as an investor? Notable exits include a gaming and apparel e-commerce platform that was acquired after several years of growth, yielding substantial returns. A local Valencia video game company turned into a thriving asset after a modest initial investment, multiplying several times. A well-known international brand in the food and lifestyle sector also delivered impressive returns. Recently, a luxury glamping company based in Seville has shown strong performance as well.
Does becoming an investor require a large wallet? Not necessarily. It is not essential to have a massive pool of savings to participate in startups. Smart strategies can fit within various financial profiles. For instance, someone with a modest savings could consider a different approach, such as leveraging assets or pursuing investments aligned with their risk tolerance and long-term financial plan. The key is to act within means and balance risk with opportunity.