GOLDEN VISA - WHAT'S NEW IN 2022?

Fund Snapshot

Q&A

Each fund manager or fund advisor has been invited to answer a series of questions about their own funds as well as the market in general.

We spoke to Stephan Morais to find out more about Indico Blue Fund.

Indico Capital Partners have a strong track record within the Portuguese VC ecosystem. Could you please start by giving us some background about yourself and the team working Indico Blue Fund?

We are generally considered to be the leading independent Venture Capital firm in Portugal investing in global and sustainable technology companies. Indico ́s funds invest in software as a service, marketplaces, artificial intelligence, internet of things, fintech, cybersecurity and digital companies. Our investment range is mostly from Pre-Seed to Series A (from 100k and 5M euros) in Portuguese and Spanish startups.

We are often the first investors into a startup and, given our backgrounds, we are very hands-on when working with the companies in our portfolio. The team at Indico has backed or founded almost all the global success stories originating from Portugal.

Why did you decide to create this particular Blue Fund?

We are big believers in sustainable investing and we are also big believers in the blue economy. There is also very limited competition for this sector and huge opportunities, so it makes total sense to launch a fund in this category.

We are called Indico, Indian Ocean in Portuguese, we are all surfers, divers, swimmers and sailors in the team, we know the ocean on a personal level in addition to being professional investors.

Has the management/advisory team invested in Indico Blue Fund and, if so why? If not, why not?

Yes, as we always do in our funds, we have skin in the game.

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Min investment: €250,000 · Lifetime: 10 years (no lockdown) · US Citizens: OK! 👍🏽· Subscription deadline: September 2023 🗓️
Indico Blue Fund’s investment profile is focused primarily on Portuguese startups and early stage companies that operate within the blue economy. Please explain why you decided to focus on this specific niche?

We have backed several companies in this sector in the past decade, the Portuguese blue economy is big and has huge potential because its so broad and diverse. There will be major financial backing from the European Union and the Government in this sector in the next decade. We can apply our growth and scaling knowledge into a sector few investors are aware of.

You consider the Indico Blue Fund risk to be and ESG compliant. There is a particular focus on one of the United Nations’ Sustainable Development Goals – Life Under Water. Could you please give us an insight into how this metric is assessed and what kind of companies you’re exploring?

We will measure impact across the portfolio and nudge companies into becoming more sustainable. Very happy to share about specific deals in individual calls with potential investors.

How would you describe Indico Blue Fund’s risk profile; Conservative, Moderate, or
Ambitious?

The fund is a mix of Private Equity and Venture capital so we would consider it Moderate to Ambitious.

Indico Blue Fund has a capital and return distribution strategy which is slightly different to most Golden Visa-eligible funds. What can you tell us here about how that distribution strategy operates and how can potential investors find out more?

Whenever we exit a company and receive proceeds we distribute them to our investors, very simple.

It appears that Indico Blue Fund collaborates with a wide range of partners. Could you please share some examples of how these partnerships benefit the fund?

Partners are key in identifying deal flow across the country and, particularly, R&D Institutions, universities or global partners can be key when we are performing due diligence to identity and decide whether the target company has unique competitive advantages. Given how broad the ocean economy is, we want to have smart people who to call all over the country and the world, so we take better investment decisions.

The Golden Visa rules state that a qualifying investment must be held for just five years but Indico Blue Fund’s lifetime runs for longer. Could you please elaborate on the fund’s term including the launch date, subscription period and investment period?

Investment period is 5 years and divestment period is the following 5, but investors can sell their units at any moment if they have a buyer that passes our KYC. In any case, because of Golden visa regulations, investors should hold their units for at least 5 years, but it’s an individual decision.

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Contact Stephan Morais from Indico Blue Fund now

Min investment: €250,000 · Lifetime: 10 years (no lockdown) · US Citizens: OK! 👍🏽· Subscription deadline: September 2023 🗓️
On average, how long does it take to onboard an investor into the Indico Blue Fund and what are the main obstacles in the onboarding process?

Our onboarding can be done in a few hours, all is done online over DocuSign, as long as investors have a Portuguese bank account and send us basic ID documentation.

In general, some investors are cautious because of the funds’ lock-in periods. How do you plan to deal with investors who wish to exit the Indico Blue Fund before its full term?

As per above we have no lock-in, investors are free to sell their units at any moment.

Many of those considering the Golden Visa are currently comparing funds vs real estate. What advice can you offer to help investors make the right decision for them?

Make sure you invest side by side with institutional investors or you might find that the small print is not gold standard.

For people who are unfamiliar with investing in funds and may even be nervous about learning, what advice would you like to give them?

Read as much as you can and learn about the funds and their managers – google is very useful.

Considering the incoming Golden Visa rule changes on January 1st, 2022, what advice would you give to investors who are currently looking into the program?

I suppose it’s better to invest 350k now than 500k after January ☺ but that depends on the exposure you might want to have. We have investors that range from 250k to 25M exposure per fund.

What is your outlook for Portugal from both an investment and lifestyle over
the coming years? 

Lifestyle I have no doubt it will be great for the foreseeable future. As for investment cycles, arguably some sectors, like real estate and probably overheated right now, at least in some themes or cities.

Is there anything else you would like to share with potential investors?

We hope investors feel comfortable in investing in our fund since they are side by side with corporate and institutional investors. Hence the terms and conditions are very different from other golden visa only funds. Secondly, we hope our track record speaks for itself!

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Sounds good! I'd like to get in touch now!

Min investment: €250,000 · Lifetime: 10 years (no lockdown) · US Citizens: OK! 👍🏽· Subscription deadline: September 2023 🗓️