Canaries take flight

Canaries take flight

The Canary Islands are doing it for themselves as they embark upon a project to generate an investment base to cultivate the islands’ technological talent.

This is being undertaken by five companies which have come together to create a technological risk capital fund. By nurturing promising start-ups through this, it is hoped the Canary Islands can make a major mark within the industry.

The five companies are Dinosol (HD), Domingo Alonso, Inerza-Contactel (Inetel), Satocan and Binter. They have joined together to form a capital fund called Archipelago Next. One of the main aims of the new venture is to ensure that ideas generated within the Canary Islands can be optimised by the people of the islands themselves. This is opposed to technologically talented people upping and leaving for opportunities elsewhere, leaving the Canaries poorer as a result, which is what has been seen in the past.

Keeping the home birds

Now looking to diversify the economy, the regional government has turned to the technological sector where location has little or no effect, meaning there is no need for transportation or storage infrastructures.

By creating a hub within the islands, it is sending out the message that opportunities now exist locally without people having to leave home to find them. Essentially, this means the people of the Canaries are betting on themselves rather than leaving it to foreign investors to take the initiative and the risks, and then the benefits too when a project works.

The bottom line, according to the new venture, is that this is a gateway to Europe for start-ups of African origin.

Opportunity knocks

As may well be expected, the entities that make up Archipelago Next have a solid grounding in technology. In addition to this, they all have a track record of developing talent and therefore their own projects.

As an example, the CEO of Domingo Alonso, Óliver Alonso, has spent time working in the States and Latin America so has opportunities in that direction, while having seen first-hand promising talent leave the Canary Islands. Now, with Archipelago Next, his company is set to be instrumental in helping the islands avoid that scenario in the future.

The new fund is looking for start-ups in which to invest through a selection of projects from public calls. Those who enter a final phase will be submitted to a trial of experienced investors. The process is beginning right now and is aimed at start-ups in the growth phase with monthly revenues of over 10,000 euros and a realistic prospect of sustained growth in turnover.

The most promising start up will receive a contribution of 100,000 euros and will be incorporated into the portfolio of investees of the fund.

For more information, please contact corporate law firm Argali Abogados. 

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