According to information released by a new website that has since been deleted, Oscar Pierre, cofounder and CEO of Spanish delivery company Glovo, is launching a new VC fund, and seeking an investor to join the team. The Fund known as Yellow Fund will invest in startups from the conception stage to Series A. Pierre spoke about the new venture at an event in Barcelona and said it would be a €50m fund, where he would personally invest €10-15m, according to Sifted.
Pierre will be donating at least 51% of his assets to “the Yellow Foundation”, which will be kick start the fund as part of its broader mission to “give back to society and the planet through empowering tech entrepreneurship”. The rest of the capital will net from “other successful founders who have successfully built scalable companies”.
The site added that the fund will be sector centered, focusing on emerging companies in Spain and southern Europe but will invest opportunistically in other regions, especially where Glovo already exists and has a “general lack of VC capital”
The move comes at a challenging time for Glovo after being acquired by Hero, a German multinational Delivery at the beginning of the year. Glovo had been found on the wrong side of the European Union for possible breaches of antitrust laws. There is still ongoing investigation looking into the company operations suspected to have been in a “cartel” with other delivery companies.
The company has also been fined €79m for breaching a labor law that requires food delivery platforms to employ their riders rather than treat them as freelancers as announced by Spain’s labor minister. The labor ministry said in a statement that Glovo has refused to give employment contracts to 10,600 riders in Barcelona and Valencia.
In response to the allegations Glovo told Sifted that the “inspections occurred prior to the introduction of Spain’s Riders’ Law” and that Glovo intends to “challenge the proposals” and is “fully committed to complying with Spanish labor regulations and the new Riders’ Law.”