Target Information

Founded in 2007 in Barcelona, Filmin is Spain's leading video-on-demand (VOD) platform that specializes in independent content, primarily from Europe. It caters to film enthusiasts by offering a diverse range of movies, documentaries, and series, emphasizing a cultural focus and a strong editorial direction.

The platform aims to strengthen its position in Spain and Portugal while pursuing international expansion. Filmin currently boasts an extensive library of over 15,000 titles, making it the largest subscription-based content catalog in Europe. The company is anticipated to close 2020 with a revenue of approximately €15 million.

Industry Overview in Spain

The VOD market in Spain has experienced significant growth, driven by changing consumer habits and the increasing demand for diverse content. The rise of digital streaming platforms has amplified competition within the sector, forcing companies to differentiate their offerings. This surge in VOD consumption has led to a nine-fold increase in demand over the past three years.

Spain's VOD landscape is characterized by a mix of homegrown services and international players, with a growing audience seeking content that aligns with their specific interests—particularly in independent and foreign films. The consolidation of VOD platforms is occurring as players recognize the importance of delivering high-quality, specialized content to captivate viewers.

Furthermore, with ongoing advancements in technology and internet accessibility, VOD services are increasingly becoming the primary mode for content consumption. The appetite for niche content, such as what Filmin offers, aligns with broader trends in personalized user experiences, making now an ideal time for expansion and innovation in this sector.

With the backing of experienced investors, platforms like Filmin are well-positioned to leverage their unique offerings in an increasingly competitive global landscape, ensuring that they retain their audience while exploring new markets.

Rationale Behind the Deal

The entry of Nazca Capital as the majority shareholder in Filmin represents a strategic move to bolster the company's growth trajectory and enhance its international presence. This investment aims to capitalize on the burgeoning VOD market and meet the growing demand for high-quality, independent content.

The partnership with Nazca and Seaya Ventures brings valuable expertise in scaling businesses and developing subscription-based models, ensuring that Filmin can maintain its unique editorial focus while effectively navigating an increasingly competitive environment.

Investor Information

Nazca Capital is a prominent private equity firm in Spain, specializing in investing in unlisted small and medium-sized enterprises (SMEs). Their experience in fostering growth and connecting innovative companies with capital and expertise reinforces Filmin's potential for expansion.

Seaya Ventures, another key investor in this deal, is recognized for its leadership in venture capital in Spain. Their insights into technology and rapid growth ventures will further strengthen Filmin's capacity to innovate and scale its operations internationally.

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This investment is a significant development for Filmin, given the current trajectory of the VOD industry in Spain and beyond. With the backing of Nazca and Seaya, Filmin is well-equipped to enhance its offerings while tapping into new market opportunities.

The continuous shift towards digital content consumption aligns perfectly with Filmin’s business model, which emphasizes a curated selection of independent films and series. This differentiation allows Filmin to stand out amongst larger, generalist platforms.

Moreover, the commitment of original founders to remain involved in the leadership guarantees that Filmin will maintain its core values and identity, which is crucial for sustained success in the competitive media landscape.

Overall, this deal can be viewed as a positive investment, as it not only provides capital to accelerate growth but also brings invaluable expertise, enabling Filmin to solidify its market position and scale its operations effectively in the coming years.

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