Why we invested in Deporvillage

By Carlos Vázquez, Investment Manager at Ad4Ventures Spain (Mediaset Group).

Ad4Ventures is the venture capital arm of Mediaset Group (leading free to air television broadcaster in Spain and Italy), focused on television media for equity deals. Ad4ventures has become the largest media for equity player in Southern Europe.

What is it?

Deporvillage is an online sports retailer specialized in cycling, running and outdoor. Located in Manresa (Barcelona) thus, ideally situated to deliver in Southern Europe.

Leveraged in increasing concern of European inhabitants for healthy habits Deporvillage aims to become the reference space for all athletes.

Why?

· Low online penetration: at the investment date online sport equipment’s sales penetration in Southern Europe was below other European geographies, but expected to increase due to changes in consumers’ behavior towards online and sports. Even if ecommerce businesses are losing interest by the venture community, we see value on those for passionate users (especially if they are willing to spend much in their hobbies…)

· Growth: taking advantage of healthy habits boom, jointly with a curated selections of products at a fair price Deporvillage shows an amazing growth track record, being in an incomparable position to lead Southern European markets.

· TV fit: very fragmented market with no clear winners, where online penetration was still low. TV helps impact people (and potential buyers) difficult to reach otherwise, increasing brand awareness to become the undisputable market leader.

· And of course, the TEAM, smart, persevering, focused, great!