According to the public agency Catalonia Trade & Investment, Barcelona is one of the most dynamic business ecosystems in Europe, especially in the field of new technologies.
According to a study published by the British investment firm Atomico,
Barcelona is in the top-tier of European cities preferred by entrepreneurs to found a start-up, second only to London and Berlin.
This entrepreneurial boom, together with the refusal of banks to grant loans to start-ups, has led to the emergence of innovative financing options.
In this post, we are going to introduce two lesser known financing options: Media for Equity and Tech for Equity. Let's explore the differences between them.
Media for Equity
This financing option is one in which a media company in the audio-visual or communication sector obtains shareholding in a start-up in exchange for providing advertising.
Wallapop, the app for buying and selling second-hand goods, el Armario de la Tele or La Nevera Roja are examples of start-ups that have availed themselves of this type of financing.
Tech for Equity
This is another financing option, by which a company in the technology sector provides the start-up with technical resources in exchange for owning some of the equity capital.
Both financing options have the advantage that they allow risk sharing and increase investor commitment.
The emergence of these and other financing options which are alternatives to traditional bank financing has meant that some law firms in Barcelona, among which our one can be found, have specialized and adapted to the needs of the start-ups. We advise this type of companies on the financing options that best suit their business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.