New VC fund to invest EUR6m per year in the best projects in South Summit’s startup competition
South Summit has launched South Summit Fund, a new venture capital fund created in partnership with Red Capital Partners, which will invest EUR6 million per year among the hundred finalist startups of South Summit 2019.
The fund will make an investment of EUR3 million and two investments of EUR1 million each in three startups chosen from the annual competition. The fund will focus on scale ups, startups in the growth phase that make a difference in innovation and are at a key moment in their development, which implies greater capacity to attract resources and greater interest for investors and corporations.
The ten annual winners of each thematic vertical will receive an investment of EUR100,000 from the fund. From those ten winners one will receive the Innovation Award, which may or may not coincide with any of the three startups that may receive commitments from the South Summit Fund.
South Summit Fund has been created by South Summit together with Red Capital Partners, a GP with offices in Madrid and Tel Aviv (Israel). The GP founded by Luz Ramírez Pascual and Javier Loizaga will be responsible for managing the fund and analysing and investing in the startups selected from the Startup Competition. Meanwhile, South Summit will focus on obtaining the best dealflow in all innovative sectors, attracting the best talent and the best startups in the ecosystem globally.
The great potential of the finalist startups of previous editions of South Summit has resulted in more than 2.3 billion dollars, which have been raised in different rounds of financing or strategic agreements by successful startups that participated in previous editions of the competition, such as Cabify, Citibox, Glovo, Lingokids, OnTruck, Spotahome and Wallbox.
María Benjumea, founder of Spain Startup-South Summit, says: “The creation of this fund is the greatest demonstration that at South Summit we are committed to the ecosystem and startups in the growth phase or Scaleups, considering them keys for economic and business transformation as well as for the generation of wealth and employment. I am convinced that the South Summit Fund will bring great value to all stakeholders by attracting the most disruptive startups in the world – and the most attractive startups for international investment-, which will increase the attraction of investors and corporations in active search for innovation."
Luz Ramírez Pascual, founder of Red Capital Partners, adds: "South Summit Fund is a differentiated product and unique in the market that will have the opportunity to invest in the BEST FUNNEL of startups in the global market, representing an unrepeatable opportunity for investors interested in the entrepreneurial ecosystem".