Money is cowardly. And we see this every day in headlines that speak of investor winters or the volatility of capital based on geopolitical, social, and environmental factors...
Yes, money is usually prudent, it seeks safe and stable returns and must live attentive to its surroundings… but it must also be brave, a restless capital that likes reasonable adventures and, furthermore, does not usually embark on them alone because it is accompanied by other factors (knowledge, experience and capacity for action), which provide many guarantees for the investment to end well.
Brave money finds its perfect development habitat in small businesses. A niche overlooked by a large portion of funds and management companies, but one that often faces financial challenges limiting its growth and long-term sustainability. These companies need to find partners who contribute to their business development in a context of difficult access to finance and an increasingly concentrated banking system.
An increasing number of investors are turning their attention to this market segment, which has traditionally received less attention. And the focus is not on economies of scale, but on growth potential and the contribution to the business community. In Spain, SMEs account for 99.81% of all businesses, representing 62.1% of Gross Value Added (GVA) and 66.1% of total business employment*
(90% of companies, between 60 and 70% of employment and 50% of global GDP)**.
The benefits of investing in small companies are manifold:
1. Driving the Growth of the Business Fabric: Investing in small businesses contributes to the diversification and strengthening of the business fabric. These investments provide the necessary resources for these companies to expand their operations, develop new products, and access wider markets.
2. Support in Succession Processes: Many small companies are family-run and face challenges in generational transition. External investment can facilitate smoother succession processes, ensuring business continuity and avoiding the loss of jobs and knowledge.
3. Professionalisation and Continuous Improvement: The inflow of investment capital often comes with strategic advice and management support. This can lead to greater professionalisation of the company, implementing better management practices and fostering a culture of continuous improvement.
Invext is the product of a business project, Royo Group, which has successfully navigated its path through all the difficulties that a small company encounters to establish itself as a European leader in its category. A journey that leaves many lessons learned and adds to the Royo family's commitment to contributing to the business community, thereby giving meaning to an investment strategy that not only seeks financial returns but also sustainable and balanced economic development.
Because brave money doesn't travel alone, it is accompanied by experience and knowledge, and finds its maximum expression by generating wealth while helping others to grow.
Raúl Royo
Source: Ministry of Industry, Tourism and Trade
United Nations Source
