How investing in a startup can be safer than leaving money in the bank

Startups and SMEs often struggle to access traditional sources of financing. That happens because banks tend to favor security over risk and innovation, and technology companies mostly thrive on the latter. The alternative, therefore, is to seek visionary Angels or VC firms willing to take that risk and support startups on their journey, yet these can be difficult to access outside established hubs and tech ecosystems.

At the same time, savers in many countries are stuck with low interest rates and market uncertainly which makes it very challenging to find a safe investment that provides a decent return.

Government intervention is not always the answer of course, but in certain cases it can provide a much-needed catalyst, which – like in this case – brings together elements and turns a negative situation into a win-win. That’s what one region in Spain is confident that they’re going to do with a newly launched innovation fund called Fond Innova. Read more…