BHH Investment Panel at 4YFN
During the Mobile World Congress 2021, Barcelona Health Hub was present with a stand at 4YFN, the startup business platform, from June 28th until July 1st. Barcelona Health Hub was proud to organize panels on various digital health-related topics on the stage of BStartup. On Tuesday, June 29th, we organized the Investment Panel.
In this panel, the panelists discussed various financing options available to entrepreneurs who need financial support to take their startups to the next level. Dr. Frederic Llordachs moderated the panel, Co-Founder of Doctoralia, with Laurent Arens, Investment Analyst of BStartup Banco Sabadell, Tania Sagaste, Operations Director of Psious, and Ana Maiques, CEO of Neuroelectrics.
BStartup Banco Sabadell
BStartup is Banco Sabadell’s initiative to support young innovative and technological companies to develop their projects with the maximum guarantees of success. They offer two vehicles for startup funding – BStartup10: for startups in initial phases raising seed capital and Sabadell Venture Capital: for startups raising a Series A or B round of financing.
For startups in the seed – early-stage phase, BStartup offers an investment of up to € 100,000 in addition to personalized support. For startups seeking pre-series A onwards in equity, or for startups seeking venture debt in post-series A rounds: Sabadell Venture Capital offers an initial investment of between € 200,000 and € 1,000,000, with the possibility of subsequent follow-ons with a maximum investment of € 2,000,000 per investee.
What makes a Startup Investable?
There are 3 factors that BStartup looks for: the startup solves an unmet pain point, is operating in a growing global market, and an experienced team that has demonstrated its ability to execute in other areas. In addition, the team will be crucial in attracting talent to make the startup grow.
In addition, it is about timing or addressing the Why Now? aspect of your startup. Many technologies have existed for years, but some industry convergence makes this the right technology at the right time.
From the Startups’ perspective – what makes a good investor?
Their goals must be aligned with what the startup wants to achieve. There has to be chemistry between the team and the investors, as they will be working very closely together. Investors do due diligence before they invest. Startups need to be equally as diligent in vetting their investors. Look at what is in their portfolio, who are the managing partners, where is the fund in its lifecycle?
What startups should do when raising money
Startups need to build their networks. Understand who the investors are from the due diligence previously mentioned that align with their mission. When approaching investors – be prepared. Have your pitch deck ready to go, prepare a business plan, and highlight the essential KPIs for the startup’s success.
Be prepared for the long haul. Fundraising does not happen overnight. It typically takes 4-6 months to close a round, ensuring you have enough working capital to support the company through that period.