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?
The Colvin Co is a flower ecommerce that connects flower growers’ with customers, eliminating intermediaries in the supply chain, thus, decreasing price and increasing flower quality.
The Colvin Co mainly offers: fresh flowers, sophisticated bouquets designs, free delivery and an intuitive product (web) for a fair price compared to offline incumbents.
· No online leader in Southern Europe: players in USA and Northern Europe have tested and proven the business model backed up by Top-tier 1 VC. The Colvin Co location, Barcelona, helps to serve rapidly Southern Europe and Central Europe. Hence, the Company aims to become a relevant player in Europe.
· Low online penetration: market not yet digitalized, online sales only represents 10%, but growing at a good pace. Sizable target market, where offline incumbents struggling in online.
· Unit economics: we were very nicely surprised by the high purchase repetition of users and healthy margins, leading to high LTV and ROI positive ratios after few months of the customer acquisition
· TV Fit: fragmented market, without a clear winner. Business that requires top of mind awareness so that the user thinks about your brand in those occasions when needed. The fact of being a business with very strong seasonality (valentine’s day or the mothers’ day) can make TV be very effective, concentrating campaigns in those peaks when purchase intent is much higher
· And of course, the TEAM, on top of every metric, visionary, quick in execution, smart, astonishing!