Henry’s Island, growth strategies
Enry’s Island, after announcing the closing of the EUR 20 million round with the US fund LDA and the finalisation of the listing process at the Vienna Stock Exchange, closes 2023 seeing the value of its shares, in the first three months since its listing in April last year, increase by 30%.
A significant performance considering that the shares listed on the VSE represent only a minority of the company’s total shares and that a significant volume of new shares will be listed by August 2024.
Luigi V. Rinaldi, CEO and chairman of Enry’s Island tells Startupbusiness: “The excellent results of 2023 and the first half of 2024, both on the industry front and in international capital markets, demonstrate the solidity and scalability not only of Enry’s Island but of the entire ecosystem of its 30 companies, based on a goodwill, made of a strategic vision, processes and frontier tools, which represent the next-gen DNA of the entire ecosystem and its keypeople, ready to lead the next era of the global VC scene.”
Enry’s Island’s growth is demonstrated by its performance in 2023, which recorded a +98% increase in revenue to €1.2 million, with a +1335% increase in net profit (to €220,000), which demonstrates the effectiveness of the strategy of Enry’s Island and its team, which has been leading a community of over a thousand ‘islanders’ around the world for the past few years.
Even more significant is that the explosive growth in revenue and net income is not yet derived from the portfolio company exits, scheduled for 2025 in the business plan, given the traction of many of its portfolio companies.
The scalability of Enry’s Island’s business infrastructure is the result of many years of investment, both in processes and in tools, which enables a constantly growing turnover per employee (in 2023 this will amount to EUR 381,000, up 100 per cent from 2022 when it stood at EUR 190,000).
The company’s operational framework is based on three layers to which all stakeholders of the group adhere: business layer: which includes people, companies and our best practices; software layer: IT infrastructure; and space layer: globally distributed coworking, which allows each islander to work from anywhere in the world.
Enry’s Island’s 3-layered framework derives from the logic of open innovation that he applies himself, driving his target companies towards business objectives of the same group. Start-ups are not only assets to be liquidated as soon as possible, but above all cogs in the great framework.
In fact, the group’s software layer is led by the portfolio company HUI, which recently closed a EUR 25 million A round, after an initial EUR 300,000 seed, with another American fund and which is in turn finalising the IPO process.
Just as the space layer is led by another portfolio company, Renaissance 5, which is growing rapidly with a completely disruptive model compared to indirect competitors such as traditional coworking spaces.
The philosophy is therefore to grow together with the Enry’s Island portfolio companies, with a deep alignment of vision, values, goals and strategies, which not only ensures a high quality of life and relationships within the ecosystem, but also guarantees an incredibly low mortality rate of less than 10%, compared to the 90% that is the industry average.
With regard to the growth strategy envisaged in Enry’s Island’s business plan, the following are envisaged: supporting the growth of the current 30 or so portfolio companiesportfolio increase, against a series of MA acquisitionsThese include a major acquisition of an Italian competitor with a portfolio of 20 start-ups (whose name is still too early to be announced), which will bring the portfolio to over 50 international companies, diversified by industry, stage and target markets; disruptive approach aimed at democratising VC to the end usertaking the VC out of international VC cathedrals (incubators, accelerators, venture builders, VCs, etc.), instead making them more casual through a series of extraordinary projects such as the launch of the first metaverse video game that will be for the VC what MineCraft was for schools in edutainment; this project will soon be launched in New York; consistent with the ‘B2C’ logic, it is planned the opening of innovative Enry’s Store, i.e. totally unmanaged flagship stores where stakeholders in the global VC scene can find all the tools (skills, processes, tools, networking) to grow their start-up or invest in the best VC opportunities.
Corroborating Enry’s Island’s growth strategy is also the presence of Luigi Valerio Rinaldi in the governance of the US fund Nimbus Capital as venture partner, who will guarantee, on the one hand, support for the growth and fundraising of the portfolio companies and, on the other, a selected dealflow in line with Nimbus’ investment strategies. (Photo by Markus Spiske on Unsplash)
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