Investment Philosophy

Finaves takes temporary stakes in companies led by graduates of IESE’S programs, and invests in early stages of business development, from start-ups to first-phase expansions.

Finaves has a multisectorial outlook and may invest in a wide range of sectors. This responds to Finaves’ mission of providing broad access to its services by IESE alumni and ensures a proper diversification of the funds’ portfolio. The investment strategy emphasizes innovation within business models, and Finaves looks for market opportunities which in addition to being feasible are scalable and demonstrate clear opportunities for growth and value creation.

Given the international character of IESE and the diverse nationality and origins of its students, the geographic scope of Finaves’ investments is global. Finaves IV, the fourth fund launched during the last semester of 2010 will also have the opportunity to invest in projects of students from the CEIBS business school in Shanghai.

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.

The following points summarize Finaves’ investment criteria and characteristics: 

• Projects led by IESE and CEIBS students and alumni

• New seed capital or start-up projects

• Quality and commitment of the entrepreneurial management team

• Innovative, feasible and scalable business models

• Multisectorial outlook

• International scope

• Capital investments or participative loans

• Minority stakes of between 10% to 30%

• Average investment per operation of between €100,000 and €300,000