The Digital Enterprise Show, held from May 21st-23rd at IFEMA in Madrid, is the world’s leading event on digital transformation. It was an opportunity to browse booths of major technology-driven companies in Spain and to hear a series of conferences and lectures on digitalization, including a round table discussion hosted by David Pereira, Director of the Smart Fund from Santander Bank. The discussion included the participation of three directors of technological Small and Medium Enterprises (SMEs) who were well-acquainted with the challenges of acquiring funding faced by SMEs in Spain: Marcè Delgado, CEO & CFO of Fluendo; Jordi Lainz, CFO of Wallbox Chargers; and Gaizka Lara, CEO of Aranco.
Panelists spoke of the disconnect between a rapidly-evolving economy in Spain, increasingly focused on technology, and the traditionality of banks, many of which are unable to finance quickly-growing, non-traditional companies because they do not meet traditional benchmarks. Digital companies, therefore, can either turn to venture capital or can pursue other non-traditional methods of financing, allowing them growth without the need to share ownership of their company, as they would be forced to do with traditional funding from a bank.
Panelists also emphasized the fact that it is easier to obtain financing when a company is either already established or when it already has projects underway – a start-up, in other words, is in the worst position to request funding. This, the speakers explained, is due to banks’ lack of understanding of value chain structures in technological companies, where results take longer to develop but are often very profitable.
We at Gedeth, on the other hand, understand that there are many types of value chains. We work with clients of all sizes – although we specialize in SMEs – to assess the benefits of going global, an imperative for all technology companies. We understand the importance of digital SMEs in an increasingly globalized world, and we recognize that the future is non-traditional.
