How to find an investor. Alfredo Gomez Soria on the Plug and Play Tech Center fund

Alfredo Gomez Soria, City — Jeddah, Senior Corporate Partnerships & Government Relations, Linkedin

About Me

Currently, I work as a Senior Manager for Corporate Partnerships and Government Relations in the EMEA region at Plug and Play. I live in Jeddah, Saudi Arabia. I have many years of experience in the startup and innovation sector, including various roles in Europe and the Middle East.

I started my career as a co-founder and COO at BigTranslation, where I helped build a translation agency focused on quality and localization. This role developed my management skills and demonstrated how technology can improve services across different industries.

In early 2019, I joined Plug and Play as a Corporate Innovation Manager in Frankfurt. I found myself in a unique ecosystem that brings together startups, corporations, and investors, and I was excited to contribute to accelerating innovation and collaboration among them. I assisted companies and startups in the innovation process and the adoption of new technologies.

In my current role, I continue to develop these areas, supporting startups in Central and Eastern Europe, as well as Central Asia. Plug and Play’s work is crucial for finding and supporting startups capable of transforming industries through technology.

My interest in startup investing evolved through my experience at Plug and Play. I saw the potential of innovative ideas, particularly in FinTech in Europe, and realized how important startups are for technological development. Now, I strive to support entrepreneurs by helping them realize their ideas, scale, and succeed by connecting them with necessary resources and networks.

About Investing

As a startup investor, my work is dynamic and diverse. Each day involves evaluating new companies, building relationships with entrepreneurs, and supporting portfolio startups in their scaling process. The process begins with identifying promising startups, analyzing their business models, and making investment decisions. Being an investor means constant involvement, providing strategic guidance, opening doors through networking, and supporting the startup’s growth.

There are several key qualities that, in my opinion, are critically important for an investor’s success:

1. Curiosity: A genuine interest in learning allows one to stay up-to-date with new technologies and industry trends.

2. Interpersonal Skills: Building strong relationships and trust with entrepreneurs is the foundation of the work.

3. Analytical Skills: The ability to assess a startup’s financial health and business model is crucial. We need to analyze metrics, forecasts, and market dynamics to ensure that the startups we support have the potential for long-term growth. 

4. Decision-Making Skills: Investing often involves making informed decisions under uncertainty. No startup guarantees success, so it is important to balance potential benefits with risks. Investors must be confident in their decisions and resilient in handling outcomes, both positive and negative.

5. Adaptability: Markets change, technologies evolve, and sometimes investment strategies need to be revised. Successful investors are adaptable, constantly reassessing their portfolios and open to changing their approach as needed. 

6. Passion and Vision: It is important to have a passion for innovation and an entrepreneurial spirit. At Plug and Play, we do not just invest in companies—we invest in founders and their vision. Supporting startups through difficulties and helping them realize their potential requires not only passion but also a long-term vision of how these companies can change the future.

7. Multitasking: The investor role involves handling multiple tasks simultaneously. From financial analysis and portfolio management to fundraising and administrative tasks, the ability to manage these different responsibilities at once is vital. This requires focus while controlling many moving parts.

Successful investing is not just about providing capital; it is a combination of curiosity, strong relationships, an analytical approach, and a passion for supporting entrepreneurs in realizing their ideas.

At Plug and Play, we face several common challenges when investing in startups. However, we have developed strategies to overcome them effectively.

1. Early-stage risk assessment: Early-stage startups are associated with high risk due to a lack of data and uncertainty in the business model. We use our global network and industry programs to thoroughly evaluate startups, looking not only for innovation but also for adaptable teams with a clear vision. Close collaboration with corporations helps identify real market needs.

2. Scalability and product-market fit: Startups often struggle with scaling and finding the right product-market fit. Through accelerator programs and connections with over 550 corporate partners, we help refine this fit and offer opportunities for pilot projects, which reduces the time to gain traction.

3. Navigating an uncertain economy: In times of market uncertainty, it is difficult for startups to raise funding. We provide access to a wide range of investors and funding opportunities. Our international presence helps startups expand into new markets and diversify revenue streams.

In summary, our platform connects startups, corporations, and investors, ensuring funding and strategic connections to maximize impact.

Since we invest at early stages, we have been lucky to become part of 34 unicorns and invest in more than 2,000 founders since our inception. Over time, we have managed to expand our investments across different stages through several initiatives:

1. We launched an early-stage investment program—Startup Camp, through which we invest in the best teams from the very beginning.

2. From our family office, Plug and Play, we continue to invest between $50,000 and $150,000 in up to 250 startups each year.

3. We also bring in external funds involving governments, corporations, family offices, and our founders as limited partners, enabling us to invest larger sums at Series A and B stages.

At Plug and Play, our strategy for selecting startups for investment is based on a combination of deep industry knowledge, innovative potential, and collaboration with our corporate partners. We strive to invest in startups that not only solve real problems but also have the potential for global scaling.

1. First and foremost, we look for startups that offer something truly innovative. This could be a breakthrough technology or a new approach to solving industry challenges. We also assess whether there is a significant market opportunity for their solution—one that allows them to grow and develop. 

2. Team and execution capabilities: A great idea will not go far if the team lacks the ability to execute it. We pay special attention to founders—are they adaptable, passionate, and experienced in their field? Strong leadership combined with a clear vision for growth is a key factor in our decision-making process.

3. One of our advantages is close collaboration with over 550 corporate partners worldwide. We select startups that can solve specific problems for these companies, which helps accelerate their growth. We provide opportunities for pilot projects, partnerships, and even acquisitions. Feedback from corporations serves as a clear signal of the market viability of the startups’ solutions.

4. Risk assessment. When evaluating risks, we consider several factors:

— market and competitive risks
— financial risks
— execution risks: how realistic is the startup’s plan, and are their milestones achievable? We monitor their progress through our accelerator programs and provide consulting to help them stay on the right track.

Overall, we use data analysis and intuition to select startups that can be successful and benefit both investors and corporate partners.

Plug and Play is a global platform, and investing in international startups is extremely important to us. We operate in more than 60 countries. 

Our commitment to international investing has helped create a diverse portfolio that includes several unicorns, such as Rappi, Owkin, and Einride.

Our investment philosophy is based on the idea that innovation has no borders. We recognize that breakthrough ideas and technologies can emerge outside our immediate geography. By expanding our focus to international markets, we gain access to unique perspectives and innovative solutions for global challenges.

At Plug and Play, we believe that financial support is only part of success. We help startups not only with funding:

— global network: connecting startups with over 550 corporate partners for pilot projects and market entry
— mentoring
— coworking spaces
— investor connections: helping find venture capitalists and preparing for negotiations
— global expansion: the GOAL program supports research into international markets for growth
— industry programs: launching specialized accelerators to gain deep knowledge and connections.

At Plug and Play, we invest in early-stage startups from various sectors, focusing on pre-seed investments ranging from $50,000 to $150,000. The investment amount depends on the following factors: startup stage, market opportunities and traction, team and execution, capital efficiency, and valuation.

Our goal is to provide enough capital to reach key milestones and attract additional investment.

Our typical investment holding period aligns with the average in the venture capital industry, which is about five to seven years. However, we remain flexible and may hold investments longer or shorter depending on the startup’s performance and exit opportunities. Our main goal is to support our portfolio companies in achieving their long-term objectives.

Tips

— develop a strong business plan. It should clearly outline your vision, mission, target market, business model, competitive landscape, and financial forecasts
— create a compelling pitch deck. First impressions matter, so make it visually appealing and concise—10-15 slides
— understand the finances: Be prepared to discuss revenue models, cash flow, and use of funds with realistic projections
— build a strong team
— show traction and validation. Metrics and case studies demonstrating your progress help build investor confidence
— prepare for the Due Diligence process. Organize financial and legal documentation to ensure transparency
— clarify your value proposition
— practice your pitch.

Where to find investors:

— networking events and conferences
— angel investor networks: explore local angel investor groups and platforms such as AngelList to connect with wealthy individuals interested in funding
— venture capital firms
— incubators and accelerators: consider joining incubators such as Plug and Play, Y Combinator, or Techstars, which offer funding and access to investor networks
— online funding platforms: use crowdfunding platforms such as Kickstarter and Indiegogo to reach a broad audience of investors
— social media: leverage LinkedIn to connect with potential investors and increase your startup’s visibility
— referrals: use your network to find introductions to investors through warm recommendations
— investor databases: research databases such as Crunchbase and PitchBook to find potential investors and their contact information.

Plans

We are actively seeking innovative startups in various sectors. Personally, I am interested in projects in sports technology, AI, and cybersecurity. In these areas, I am particularly drawn to startups that demonstrate:

— disruptive potential: solutions that challenge existing paradigms and create new markets
— scalability: business models with the potential for rapid growth and expansion
— strong moats: unique technologies or approaches that create competitive advantages
— positive impact: solutions that solve significant problems and improve people’s lives.

We are also interested in startups developing solutions in the following areas: Fintech, HealthTech, sustainability, and the future of work—technologies that enhance productivity, collaboration, and employee well-being.

We invite startups in these sectors to apply to our programs, such as EMEA Startups Camp, where they can access mentoring, resources, and potential investment.