Mission and Strategy
Finaves is a center of the IESE Business School dedicated to fostering entrepreneurial initiatives through seed capital. Sponsored by private investors, Finaves is a resource for IESE students and alumni in the creation and financing of their businesses.
The Finaves mission is to promote and support IESE alumni’s entrepreneurial initiatives through professionalism, commitment, integrity, respect and service. In doing so, Finaves aims to contribute to job creation, generation of wealth and the economic development of society as a whole, as well as offering educational opportunities relating to entrepreneurship to the IESE community.
Finaves takes a temporary stake in companies led by graduates of IESE’s programs, investing in early stages of business development, from start-ups to first phase expansions.
Finaves typically makes equity investments in exchange for minority stakes of between 10% and 30% of the company’s share capital. Average investments range from €100,000 to €300,000 with a maximum limit of investment set at €300,000 to ensure the availability of funds for IESE entrepreneurs and a measured concentration of risk.
Investment Criteria and Characteristics
In identifying initiatives for investment, Finaves implements the following criteria:
- Projects led by IESE students and alumni
- Initiatives seeking venture capital for start-up or first phase growth projects
- Quality and commitment of the entrepreneurial management team
- Innovative, feasible and scalable business models
- Multisectorial outlook
- International scope
- Capital investments and/or participative loans
- Minority stakes of between 10% to 30%
- Fund Size: Each fund has approximately €3-4 million.
- Investors: Finaves investors include private individuals, IESE alumni and professors, local businesses, other investment funds and governmental organizations.
- Investment Timeline: Finaves make 4-6 investments per year.
- Investment Size: Finaves participates as a minority investor, receiving on average between a 10%-30% participation for its investment of up to € 300,000.
- Time Horizon: The overall life of each fund is10 years. During the first few years, projects are evaluated; the next 5-6 years businesses mature to a stage in which exit is achieved.