Human connection is the key to business success, according to Montse Suarez, the founder of Iris Ventures, which invests in customer-centric brands that aim to solve consumers’ problems and help them lead healthier, happier lives.
Although Suarez and her team sift through thousands of potential investments, and have a strict set of requirements about how and where they put their money, they put just as much emphasis on passion as on profitability.
“You have to be quite thorough when it comes to looking at investment opportunities, and we always start with the founder. We need to connect with the founder, and their story, just as consumers connect with products, services and stories,” said Suarez.
“That connection needs to be completely authentic because building a business is not a sprint, it’s a marathon, and you need to make sure that you can see the passion in the founder’s eyes,” she added.
Suarez believes the right human dynamic can drive a business to great heights, especially when the investor and founder have complementary skills and experience.
She said that for founders looking for investment, “it’s important to get the right partner, someone who has done it before, who knows what not to do, as well as what to do,” Suarez said, adding that the road to financial success is long — and intense.
Potential investors need to have the “financial firepower to be able to accompany you, not only through one round of fundraising, but perhaps a couple of rounds to get the business to a point where it can be self-funded,” she added.
Even when it’s forging bonds with a founder, Iris never loses sight of the end consumer.
“We put the consumer at the core of everything as we try to understand the cultural shifts, and [the brands] want to back in the long term,” said Suarez.
“That consumer is looking for newness, and I think there is a lot of emotional white space, where the consumers’ needs and desires are not being met. That’s where we’re really focusing when it comes to identifying the next generation of brands,” she added.
Catalina Ruiz Urquiola
An example of that investigative approach is Iris’ investment in Artemest, a platform that promotes Italian craftsmanship, showcasing the skills of more than 1,400 artisans to 71 countries around the world.
Before Artemest came along, some artisanal businesses — marble designers, ceramicists, carpenters, textile and lighting designers — were at risk of closing because they didn’t have the tools to promote themselves or a critical mass of clients.
Artemest, which was founded by Marco Credendino and Ippolita Rostagno, gave them a world stage.
Although anyone can buy homeware from Artemest, the business is chiefly business-to-business and the team works with interior designers on large-scale residential and commercial projects worldwide. Artemest has offices in the U.S., Europe and Dubai, and the teams are constantly interfacing with the Italian artisans, the interior designers, and the end customer.
Catalina Ruiz Urquiola, vice president of Artemest Middle East, who joined Suarez said customization — and personalization — is a big part of business in the region.
“This client really, really loves our ability to work with the Italian craftsmen directly. It means our product offering is very different to a lot of the other luxury brands in our space. We really work on helping an interior designer execute their vision,” she said.
“Customers are asking for dining tables for 25 people — minimum — so having the ability to customize everything is a strong part of what we do,” she added.
Urquiola said there is also increased demand for “interesting materials,” not just in the Middle East but globally. “Whenever an artisan works with something out of the ordinary, people gravitate towards that. We have these Gaetano Pesce vases, which are actually made out of silicone rubber, but they look like glass,” she said.
In other cases, clients are seeking inspiration — and comfort. Urquiola said that, due to lockdown, “wellness at home” has become a big trend in interiors, materials and fabrics.
“Sometimes we’re working on projects with offices that no longer look like offices. The lines of what a traditional office looks like are blurring. In Dubai, in particular, we have so many offices that look more like spas. Well-being is certainly the intention behind certain designs.
“Then you have lighting, you have sound, and the mix of materials that go into every aspect of well-being that designers need to look into if they want to stay relevant,” said Urquiola, who’s ready to deliver on clients’ increasingly complex demands.