It’s no secret that raising money for high-growth ventures in Spain is a monumental task, especially at the seed level. Whether from the lack of experienced angel investors or the competition from the explosion of new startups in a down economy, getting that crucial angel investment can sometimes seem like mission impossible. That’s why Barcelona startup Treeveo decided to change their approach and successfully (and quickly) closed a €150k All Saints Round.
Treeveo, a web-based strategy execution software, was founded by Jeroen Kemperman and Paulo Martins and was accepted into the Wayra Barcelona class of 2013 back in March. In August, they chose an alternative method of fundraising, one that hadn’t been tried yet in Spain. The All Saints Round works by seeking a larger number of investors that will buy smaller chunks of equity or “tickets”. The main advantages of the All Saints Round are speed and diversity as the smaller tickets allow for a standardized shareholder agreement and offer the opportunity of investment to a wider range of angels, thus providing a stronger and more dynamic network of shareholders.
Treeveo successfully raised €150k from six investors in tickets of €25k a piece. Because of the smaller entry amount, the round was completed in two months and was actually oversubscribed by enthusiastic angels from diverse backgrounds including consulting, banking, media, sales and entrepreneurship. These early investors will be vital in offering their expertise in their respective fields along with their monetary contribution.
The All Saints Round is another example of innovation in the bedrock of entrepreneurship and venture financing, in this case somewhere between crowd-funding and a traditional angel round consisting of only one or two early investors. In Spain, the All Saints Round may become a trend as the inexperience and overall lack of angel investors has inhibited early stage startup financing for years. Raising the capital necessary to build a sustainable company can be a nightmarish endeavor for Spanish startups, often taking over 12 months to complete and requiring hundreds of hours of the entrepreneur’s time and effort that could be better spent on growing their company. We applaud Treeveo’s creativity and practical approach to raising money by employing the All Saints method and closing their seed round quickly so they can get back to work on the more important stuff, like their startup!