Stephanie Selesnick talks to two of the founders behind the Events Venture Group:
The Event Venture Group (EVG) was recently formed to support the next generation of event founders from pre-launch, to launch, to any event in its first three years, says founder Marco Gilberti (pictured), Vesuvius Ventures, and longtime entrepreneur and angel investor in the event tech space. With another 28 members, this not-profit organisation is excited to support the next generation of event founders with needed capital and advice with their launches and early stages of event building.
I spoke with Marco and Greg Topalian, chairman of Clarion North America, and serial expo investor about the EVG.
Marco explained he had this idea of an event fund for a few years after speaking with event founders who were having challenges finding strategic capital to fund their launches, and subsequently shared it with friends in the industry. They liked the idea. Those friends are now part of the EVG Board or organisation founders.
Marco said: “Smaller events (under $1 million EBITDA) aren’t interesting enough for big companies to buy, but it doesn’t mean they aren’t successful.” EVG’s founders and Board members believe that with the right help, these owners can grow their events to that magical number and beyond.
Greg was already buying into businesses (Ai4, eMerge Americas, Yada), so the idea of an active investment group funding smaller companies and events seemed like a natural fit.
The EVG has a formal application process overseen by executive director Marilú Páez for both members and applicants. Founding members are from the US, UK, and Europe. Each member pays an annual fee and agrees to actively participate in the organisation. The investments for events start at $200,000 and go up to $2 million (or more). Marilú works with both the entrepreneurs and Board members throughout the application and funding process. I asked Marco and Greg a few questions about EVG.
Is EVG only for exhibitions or other business events?
It’s for all kinds of events: festivals, expos, conferences, consumer events, event tech, but not suppliers.
Where are Board members and founders from?
There are 29 members to date. This is a group of people who have done things in the business events industry for years. There is a lot of collective knowledge and experience from different sectors of the industry including large, public companies, investors, entrepreneurial organisations, former CEOs, and consumer shows.
How involved are the investors post funding? Do they also mentor? Act as angel investors?
Members are very active with chosen entrepreneurs with mentorship and strategic support. They want these companies to be successful and grow, or they wouldn’t have invested in them!
As I understand it, each investor decides independently whether to invest or not. What’s the decision-making process?
Each member decides for themselves if they want to participate, and at what price-point and percentage (there is a minimum). Once a completed application is received, there’s a review team who look at the idea. If it’s approved, then an investment/analysis committee made up of experts in that sector conducts a deeper dive and make a recommendation.
If it’s a ‘yes’, then the event is shared with the group to see if there’s enough interest to form a SPV (Single Purpose Vehicle), created specifically for those members to directly invest in the given launch or event.
There is a minimum percentage per member per deal.
If an entrepreneur (or budding entrepreneur) wants to submit their show idea, how do they do so? How fleshed out should the submission be? (A full business plan or what?)
Greg advises that those interested in pursuing funding with EVG have a business plan. Marco adsd that there is a template for producing an investment deck, which should help entrepreneurs share their vision not only with EVG, but other investors, potential sponsors, etc. in the future. They provide help along the way to make the process as easy as possible.
What advice do you have to succeed in receiving funding?
The whole EVG process works under non-disclosures, so anyone already working in the industry need not worry about applying to the EVG. Chances are quite good that the investment committee and Marilu will be the only people working on an application until it goes to the full membership.
The EVG will be announcing the first round of recipients shortly.
Marco concluded: “We are all very lucky to have spent time in the events business over the last two, three or four decades, and agree that a group like EVG was necessary for the industry now to keep seeding, supporting, and accelerating the next generation of event entrepreneurs and events innovators. We’re passionate and want to make a difference in our industry supporting the right people for the future.”
For more information on EVG, please visit: https://www.eventsventuregroup.com/
