Kiatt is a Spanish Family Office born in 2003 and specialised in venture capital investments in science and technology. Recently, the creation of Kiatt Earth Ventures was announced, a vehicle that intends to make investments worth 50 million euros during the next years in projects aimed towards mitigating climate change.
At the head of the company, we find Manuel Fuertes, who manages his family heritage through this entity. Engineer cum laude specialised in technological transfer, he has been leading the project since the beginning, and he has had a major role in order for Kiatt to be present nowadays in over 50 sectors and 40 countries.
In this exclusive interview for elAsesorFinanciero.com, Fuertes reveals some of the keys to Kiatt’s success as well as his vision about the segment of venture capital.
Your profile is clearly that of an entrepreneur, with great experience in scientific research, technological transfer and intellectual property. Why did you decide to found Kiatt and what were your main goals by doing so?
Kiatt was born to manage my own patrimony, as a way to organise, run and coordinate the investment. Our mission, since 2003, is to tackle the biggest challenges in society by investing in the most privileged minds of our time, and the intellectual property these generate
Our foundational goals are still in force today. And to be able to achieve them, we have designed a model that makes an exhaustive study of all our investments and shares, making sure they comply with rigorous criteria both scientific and technological, profitability and sustainability.
After creating Kiatt in Oxford, he opted for Madrid to open the first office abroad. Why Spain and what does this office primarily do?
Actually, this was the second office, we opened the first one in China. Spain was a very important destination, given that we have an extremely elevated level of science, and we are able to count on great professionals in our country.
How do you feel about the venture capital sector these days? I would like to know your opinion, specially about investing in venture capital at a European level and in Spain after 2023, a year that does not appear to have been good.
2023 has been inevitably affected by the international macroeconomic scenario, although data points towards investing in new European companies has exceeded 77.000 million dollars this last year, surpassing the pre-pandemic record. Countries such as Italy, France, Switzerland and Norway stand out, where investments are growing at a two-digit rhythm.
If we analyse where investments go, we encounter physical technology, more precisely, Deep Tech and Climate Tech, a tendency which confirms the suitability of the launch of Kiatt Earth Ventures. The Climate Tech market will grow exponentially in the coming years, and it will be one of the safest and most profitable investments for investors.
If we talk about Spain, our country finds itself in a key moment for the development of the entrepreneur ecosystem. The post-covid recession and the international macroeconomic context we mentioned earlier has led to important cuts in valuation, uncertainty and a standstill in funding. Nevertheless, our country has been less vulnerable than other advanced entrepreneurial ecosystems, since most of those companies are still at an initial stage.
Spanish companies at this stage must be ready to resist and accept that foreign investment will continue to be necessary, because venture capital funds, despite their growth, still do not have enough funds to satisfy the demand of bigger rounds. But they should not forget either that beyond financing, foreign investors also bring resources and global knowledge.
On the other hand, and as I always emphasize, Spain is incredibly full of talent. In fact, there are a lot of entrepreneurs with very interesting projects and the potential to grow, but the market is not making it easy for them. The lack of local funds and the macroeconomic context are important obstacles to obtaining capital. They must weather the storm of the bear stock market and know what to expect from each investor.
Which are the key assets in Kiatt’s investments portfolio nowadays, both in sectors and in company typologies? How many countries do they represent?
We are present in more than 15 countries such as The United States, Switzerland, UK, Commonwealth countries and, above all, we have a lot of presence in Asia. More than 52 industries are represented in our investment portfolio, like Climate tech and future agrifood; AI & cybersecurity; health and quality of life, just to mention some.
More than having key assets, all our investments are carefully selected based on our methodology, and they have common traits. For instance, we only participate in companies where the round leader is also leading his sector or his investment thesis.
Also, being a Family Office, our investments are flexible, and our capital is patient. We search, actively and internationally, projects in which we believe and of course, that are very profitable. Our investments are made medium and long term, which is why we can afford the time to explore the sector deeply, no rush, and be real experts who know where, how, when and why they decide to invest, beyond trends, always looking for an investment that is valuable and aligns with our values.
