Noam Ohana is managing partner of Exor Seeds, the early stage investment fund of the Exor group. 44 years old, he was born and raised in Paris, where he graduated from Sciences Po University. Prior to Exor Seeds, he was managing partner of the venture capital fund Conegliano Ventures and partner of BeaconLight Capital, which he co-founded in 2010. Exor Seeds started last March to contribute to the birth of a new generation of companies and entrepreneurs in Italy. But this is the culmination of a journey that began a few years earlier. We reached Ohana to tell us about the origin of the project, how much the fund plans to invest in Italian startups and what goals it has set itself.
When was Exor Seeds born?
“The main Seeds Fund was launched at the end of 2017”.
How would you define your investment fund?
“We are Exor’s early stage investment arm.”
What are your goals?
“Our goal is to be investors of at least half of the Italian unicorns that will be born in the next 5-7 years”.
Is there this potential in Italy?
“The startup ecosystem is at a turning point, there are some first positive signs: in 2021 investments exceeded one billion euros, some Italian startup founders, but based abroad, returned home to launch new startups and emerging success stories are inspiring other entrepreneurs. We believe this is just the beginning. The program aims to unlock the enormous potential of Italy’s nascent technological ecosystem, allowing the country to play a role commensurate with the size of its economy ” .
What made you think that dozens of unicorns will grow up in Italy in the next few years?
“The quality of talents, the development of the infrastructure for startups, public and private support. But it is not taken for granted: it will depend on all of us.” We need a village! “, As the quote goes.”
To complete the quote from the proverb, “It takes a village to raise a child”. What has prevented the child, or the ecosystem of Italian startups, from growing up until now?
“There are several structural reasons, including the presence of more risk-averse capital.
However, this is changing, Cassa Depositi e Prestiti, for example, has taken on a much more active role, similar to the one that Banque publique d’vestissement (Public Investment Bank, the French CDP, ed.) Had in France, and this could have a profound impact on the Italian ecosystem as it had in France “.
How many startups will you invest in?
“Our ambition is to close two trades per week, but it will take time as the market today is unable to sustain this pace at the moment. For now we hope to be able to close no less than two trades per month.”
How many years will the program last?
“This is a significant multi-year commitment and we do not want to set a maximum investment ceiling: it will depend on the opportunities that arise. We have a ‘long’ position on Italy”.
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What do you watch before investing in a startup?
“At this stage, mainly two things: the quality of the founders and the market potential”
How long does the evaluation process take?
“After submitting the question, we send an initial response within five days. Once this first phase is over, we send an invitation for a 20-minute telephone interview. Once this step is also passed, we invite the founders to make a final phone call.”
What do you ask for in exchange for the investment?
“This is an investment of 150,000 euros in shares or convertible notes (financial instrument used by seed investors who want to postpone the evaluation of a startup to a future investment round or to the achievement of certain market objectives, ed.). For now we do not have a target of ownership and the valuation will be established by market dynamics “.
Are there any similar programs abroad that have inspired you?
“We have been inspired (and informed!) By our friends at Kima Ventures. Their impact on the French ecosystem has been profound.”
How many questions have you received so far?
“Almost a thousand”.
How many startups have you already invested in?
“Six, you can find them on our website”
Once invested in a startup, how do you monitor its growth?
“We have regular communication with the founders.”
Do you invest in particular sectors or do you evaluate all the business ideas that are proposed to you?
“As far as our core business is concerned, we are generally focused on mobility, fintech and healthcare. In Italy we are taking a broader approach. We place much more weight on the quality of the founders in the early stages, regardless of the sector. Our main selection criterion. it is the potential and the ambition of the founders to build something more than a simple ‘Italian company’ “.
After the first seed round, is there a chance to get another investment round from your program?
“There is and should not be any expectation of subsequent investments, but we have evaluated and will evaluate on a case-by-case basis.”
What is the Vento program? How is it going?
“Vento is a venture builder who invests in pre-idea and pre-team talent and guides them through a structured framework to build scalable businesses. We currently have 30 people divided into 10 teams. We are close to Investor Day. Most of the team is working on product development and market validation. The goal is to be able to raise capital on the market in mid-June “.
Note: Exor is the majority shareholder of GEDI, of which Italian Tech belongs.