We sat down with Patrick Visser, founder of Max Ventures, to talk about their investment criteria and work supporting startups on the island of Mallorca.
Why is Mallorca a good place to launch a startup?
In our opinion, the quality of life on Mallorca is a big factor. There isn’t a great startup scene on Mallorca currently, but this is exactly what we are looking to change. There are sufficient professionals looking to start a business and plenty of potential business angels. They just need to be brought together. There is a government program in Parc Bit (a science and technology park located on the outskirts of Palma), but actual incubator/accelerator support is what is still lacking on the island.
How do you choose which startups to invest in?
At the moment, we’re not limited to any particular vertical. When reviewing investment opportunities, it’s important that the business is scalable, and we want to see at least an MVP and some traction (which does not have to be revenue traction). We invest at the pre-seed and seed stage, and we mainly source deal flow through our network and via LinkedIn.
What is your average ticket size?
As we are mainly looking to invest at the pre-seed and seed stage, our ticket size is between €50k and €150k.
What is the most important factor for you when reviewing a startup pitch deck?
The team and the people behind the business are the most important factors for us. If a pitch deck is inconsistent, has spelling mistakes, or is poorly designed, we won’t invest but instead invite the founders to join our accelerator program, where we train businesses on how to fundraise, amongst other things.
Which startups has Max Ventures invested in?
So far, we have invested in Yovivo.com and we have committed to BeGekko and Columat. We are also looking at two potential other investments for this year.
Yovivo.com is a new platform where international professionals, digital nomads, and seasonal workers can rent furnished or hotel accommodations from 1 - 6 months, for reasonable monthly rents.
Begekko allows industry professionals to stay in hotels free of charge in exchange for an audit of the department in which he/she is an expert.
Columat provides fast, safe and queue-free deliveries and collections via smart lockers which adapt to the needs of each consumer and product.
What added value do you bring as an investor?
We always try to be strategic investors, so we are looking for startups where our network or experience are beneficial to the startup. Our expertise ranges from PR to financial structuring, so I would say we bring a great deal of added value; we don’t just invest in a project, we mentor it.
What does the future look like for Max Ventures?
We would like to run 4 accelerators per year with up to 25 startups per accelerator and we are looking to complete our first investment vehicle, Max Ventures Seed One Limited Liability Partnership (LLP), by the end of Q1 2023, where up to 10 Limited Partners (LP) can invest from €100,000 each, and this money is used to invest in startups. The Seed One LLP will be followed by additional LLP’s for both pre-seed and seed investments, but also for follow-on investments.
Eventually we would also like to expand Max Ventures throughout Europe and set up a network of accelerators where we also connect with other VC’s and accelerators to standardise rating models and analysis reports. This would more than likely be as a franchise structure.
CAPITAL AT RISK. Investing in start-ups and early-stage companies involves risks, including illiquidity, lack of dividends, loss of investment and dilution. It should be done only as part of a diversified portfolio. There is no assurance that the investment objectives of any investment opportunity will be achieved or that the strategies and methods described herein will be successful. Investors are recommended to seek independent advice before committing or if they have any doubts as to the appropriateness or suitability of such an investment in relation to their specific circumstances.
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