Pinama23: Redefining Early-Stage Investment

Guillermo Soto and Brett Hurll – Leaders InFocus Conversation

In our latest Leaders InFocus conversation, we explore the early-stage investment sector in Spain through an in-depth discussion with Guillermo Soto of Pinama23, the firm that has recently been awarded the “Best Early-Stage Investment Firm Spain 2025” accolade. In this conversation, Guillermo shares valuable insights into Pinama23’s unique approach, its internal structure, and the significant role it plays in the wider Spanish startup ecosystem.

Brett:

Congratulations on winning the “Best Early-Stage Investment Firm Spain 2025” award! This is a significant achievement. How do you feel this recognition reflects Pinama23’s unique approach and contributions to the Spanish startup ecosystem?

Guillermo:

I think it is recognition of the work we’ve done over the years—the collective learning and the practical experience that we gathered through our first five projects, which enabled us to build what we believe is the best possible investment club. It’s not only about creating the optimal experience for our investors and the startups in our portfolio; it’s also about generating the best possible returns. Of course, those financial returns are important, but so is the impact we create in terms of social and economic development in the territories where we invest. Ultimately, we are business angels driven by the goal of making a positive impact. This award represents, in many ways, the culmination of a long process where we worked to develop the best possible investment vehicle. It is a recognition that our model is seen as a reference in the Spanish market—and it’s even being acknowledged on an international level. We are truly thrilled by the award and excited about the future opportunities it opens up.

Brett:

Let’s turn our attention to how Pinama23 operates. You mentioned that Pinama23 functions as an umbrella brand. Under this umbrella, there are currently active three vehicles. Is it right to say that this umbrella represents around €9.5 million, or is the figure more or less than that?

Guillermo:

Yes, that’s correct—our current umbrella is has raised €9.5 million. However, we have ambitious plans to grow this amount. Our roadmap involves expanding our structure and create new ventures, which will eventually bring us to a target of €15 million. Our aim is to become a reference in Spain in terms of size, returns and effectiveness of our operating model.

Brett:

Focusing on the investor side, how many angel investors are currently part of the Pinama23 Capital 23 umbrella?

Guillermo:

At the moment, we have around 130 angel investors. These investors are a critical part of our ecosystem, contributing not only capital but also their experience and networks, which are essential for supporting our startups.

Brett:

And what about the investment sizes? What range do you see from your angel investors? Is there a minimum investment amount required?

Guillermo:

Yes, in our current model—specifically with Pinama23 Capital23—the minimum investment is set at €50,000. This threshold is designed to strike a balance between ensuring that the investors are serious and committed while also allowing for meaningful participation in a diversified portfolio of early-stage startups.

Brett:

I understand that a key aspect of your fund structure is that you only invest in Spanish-domiciled businesses. Is that correct?

Guillermo:

Absolutely, that’s correct, and there are two main reasons behind this decision. First, our identity as Spanish investors means we have an inherent understanding of the local market. We have established contacts and deep market knowledge that allow us to support our portfolio companies more effectively. This local expertise is something we believe can make a substantial difference in the success of our investments. The second reason relates to legal and practical challenges. If we were to invest outside of Spain—say, in markets like the US or the UK—we would face potential conflicts or legal issues for which we lack sufficient local expertise. The costs associated with hiring local legal counsel in those jurisdictions would likely exceed the potential gains from those investments. Although some of our investments have naturally moved into markets like the UK and the US over time, our core focus remains on Spanish-domiciled startups, in line with our strategy and expertise.

Brett:

In the UK, there are known tax advantages that incentivize early-stage investments. Do similar tax benefits exist for investments in Spain?

Guillermo:

Unfortunately, the tax environment in Spain is not as favourable as one might hope. Since we operate as an LLC and not under a fund’s license, we are taxed as a regular company at the standard rate of 25%. This contrasts sharply with the treatment of registered funds in Spain, which receive a 95% to 99% tax deduction on their profits—meaning they effectively could pay only a 1% tax rate. Moreover, if an individual invests directly in a Spanish startup, they can benefit from a 50% tax discount on the investment amount. However, when investments are made through a vehicle like ours, those attractive tax benefits are completely lost. This tax disadvantage represents one of the most significant challenges we face in our model. When discussing this with potential investors, we must counterbalance this shortfall with strong arguments that highlight our risk mitigation strategies, the probability of achieving attractive returns, building a unique investing experience and the advantage of being able to participate in a diversified portfolio with a relatively small investment amount. It is an area where we continuously work to ensure that our overall value proposition remains compelling despite these tax challenges.

Brett:

Let’s talk about your investment strategy in more detail. What determines the amount you invest in a startup? Are you focused solely on pre-seed and early-stage rounds, or do you participate in later rounds as well?

Guillermo:

Our focus is on getting involved at the earliest possible stage. We invest primarily in pre-seed and seed rounds. It’s important to note that nothing reaches our Investment Committee unless it is already a formally incorporated entity. Even then, we have a track record of investing in companies that have not yet generated any revenue from customers. We are agnostic with respect to sectors; our approach is not confined to a narrowly defined thesis. Typically, we target companies with a valuation of around €4 million, although there have been several instances where our early investments have exceeded that threshold. A key factor in our decision-making process is the quality of the founding team. We look for founders whose values align with our own, who demonstrate the ability to execute their vision, and who exhibit essential skills such as salesmanship, learnability and leadership. Equally important is their financial literacy—founders who cannot grasp basic concepts like balance sheets and cash flow tend to raise concerns for us. We always ask, “Why are you doing this?” and evaluate their responses, as understanding their purpose is critical to the long-term success of the venture.

Brett:

You’ve also mentioned the importance of growing the startup ecosystem in Spain. In your view, how is the ecosystem evolving, and what are the major challenges and trends you observe?

Guillermo:

The ecosystem in Spain faces a number of challenges, largely due to the lack of government support for entrepreneurship. Our federal government is not particularly welcoming toward new businesses, whether they’re startups or established companies. This  fact has effects across all 17 autonomous regions in Spain, many of which are governed by center-right parties. Although the central government often has a left-leaning economic stance, the regional governments have limited authority—especially when it comes to setting business taxes, which are controlled at the national level. As a result, even when regional administrations try to create a supportive environment, their hands are tied by broader fiscal policies. That said, there is a positive trend emerging. I see a consistent move toward the professionalization of early-stage investment. Individual investors are becoming increasingly knowledgeable, aided by the growing availability of educational resources like books and training courses. Moreover, larger venture capital firms—which in the past may have struggled to meet their profitability targets—are now exploring early-stage investments in hopes of achieving significant returns. This shift is encouraging entrepreneurs to adopt more rigorous business practices and is elevating the entire ecosystem. Another important trend is the rise of collaboration over cutthroat competition. In our sector, success is not a zero-sum game. When one Spanish startup achieves remarkable success—whether it reaches unicorn status or successfully expands into international markets—it generates positive momentum for the whole ecosystem. In this way, even competitors share a mutual interest in the overall health of the industry, fostering an environment where collaboration often trumps pure competition.

Brett:

Given that the investment space is becoming increasingly competitive, how do you ensure that Pinama23 remains at the forefront?

Guillermo:

Our focus on professionalization is key. We are a small, agile team of five, and our collective experience allows us to implement effective processes that can manage a growing deal flow. We also integrate technology into our operations, which not only streamlines our internal processes but also supports active engagement from our investor network. For each startup we invest in, we designate a key contact person. This individual is chosen for their expertise in the relevant sector or for their understanding of the startup’s strategic objectives, such as international expansion. Their role is to act as a mentor and to serve as the primary liaison between the startup and our broader group of 67 investors. By establishing regular interactions—typically on a monthly basis or at least every three months—we ensure that our support remains proactive and consistent. Furthermore, our dual identity as both institutional investors and business angels allows us to offer a unique blend of structure and personal support.

Brett:

That approach is indeed impressive, and it clearly contributes to why investors and founders are drawn to Pinama23. The support you provide goes well beyond mere capital. Could you share an example of a recent success that underscores the trust and confidence your investors have in your model?

Guillermo:

Certainly. I’d like to highlight the remarkable performance of our sixth investment vehicle. It managed to raise €4.3 million in just 21 days. Even more impressive is that over €3 million of that total came from just two emails sent to our existing investor base—without even providing a detailed deck. This achievement is particularly significant in a year when many fund managers reported considerable challenges in raising capital. It demonstrates the level of trust and confidence our investors have in us, which we have built over years of consistent performance and transparent communication. Ultimately, it comes down to our track record, our experience, and the strong relationships we’ve nurtured with our investors over time.

Brett:

That is a powerful conclusion to our conversation. Thank you, Guillermo, for sharing these detailed insights into your strategy and the unique challenges you face. It’s evident that you and your team are making a significant impact on the Spanish investment ecosystem, not only by supporting startups with capital but also by actively fostering an environment where entrepreneurs can thrive.

Guillermo:

Thank you, Brett. I appreciate the opportunity to share our story. We’re committed to continually improving and adapting our model, and we believe that by staying true to our values, we can contribute meaningfully to the growth and success of the Spanish startup ecosystem.