We have summarized for you the main topics of the interview:
DaD – The Internet Incubator
After his experience in Netjuice, Rodolfo created DaD, a 2.0 Internet incubator. Rodolfo explained the process the projects go through in DaD. From more or less 700 project proposals received, they finally decide to invest in 7. Sometimes they help the entrepreneur to build up his corporate team and usually hold 15-25% participation. They usually accompany the entrepreneur along the different stages (from start until exit) for about 5 years. A hint on how to get into DaD? Show that you are an entrepreneur but also have management skills!
An overlook on the Internet industry
According to Rodolfo, the industry has changed significantly during the last years. It used to be very costly to invest in technology in the early days whereas now with €50,000 you can easily get the technology.
The success of projects like Tuenti or BuyVip has increased the number of Business Angels in Spain. It’s not true that there is no money for new projects. There are very few people who are ready to analyze technological projects and thus it’s difficult for technological projects to get funds.
To invest or not to invest
First of all, the project needs to be scalable, which means that it will generate average revenues of €200 million after 5 years. To see a balanced team is also a key factor when analyzing a project. It’s very important for entrepreneurs to know how to sell the idea.
Rodolfo explained that a couple of times in DaD they have rejected projects, which later on they realized they were worth the investment, but the initial valuation was too high.
Entrepreneurs’ common mistakes
An unbalanced team and the wrong business model can lead the entrepreneur and the venture on the wrong path. The first common mistake is that entrepreneurs sometimes feel they can handle it by themselves. Secondly relying 100% on advertising and not defining other revenue sources is also a frequent error amongst Internet entrepreneurs. At least 75 % of the revenue should come from other sources.
Rodolfo has been an investor and entrepreneur in the Internet industry for a long time. As an entrepreneur he created two Internet incubators and as an investor he has been involved in three important Spanish Internet projects of the last decade: BuyVip, Tuenti and Xplane.
The interview provides the reader with very interesting and sound insights of the situation of Internet and start-up these days. We are very proud to have such an experienced member amongst our organisation. Great interview, Rodolfo!