Faraday Venture Partners is a venture capital firm based in Madrid that, in 2025, decided to lead a seed round in Hotta, a Spanish climate-tech startup that uses heat generated by computer servers to produce heating and hot water sustainably.
| Startup | Hotta |
| Investor | Faraday Venture Partners |
| Sector | Climate-tech · Energy efficiency · Thermal systems |
| Founded | 2021 · Spain |
| Stage | Seed · commercial expansion |
| TSCFO services | Financial · tax · labor due diligence |
| Main challenge | Validating the viability of a climate-tech investment through a full review |
| Solution | Accounting analysis · balance sheet · P&L · cashflow · tax · labor |
| Key result | Seed round led by Faraday Venture Partners |
— 01 · STARTING POINT
A climate-tech investment that required rigorous analysis
Faraday Venture Partners became interested in Hotta at a key moment for the company. The startup was expanding and preparing a new round to accelerate commercial growth and scale its energy impact across Europe.
Hotta develops a solution capable of transforming residual heat generated by servers into useful heating and hot water for sectors such as hospitality, swimming pools and residential facilities.
Before moving forward with the investment, Faraday needed a financial, tax and labor due diligence process to validate the company’s situation, understand its risks and assess its ability to scale with control.
— 02 · WHAT WE DID
Validating the investment from every financial angle
At The Startup CFO, we carried out a complete due diligence process for Faraday Venture Partners, working directly with Hotta’s founders to organize information, resolve questions and build a clear view of the company.
The work included reviewing the accounting, structuring balance sheets, analyzing cashflows and validating the P&L. The goal was to understand not only the numbers, but also the operating model and the financial implications of its growth.
The collaboration was fluid from the beginning, with complete documentation, collaborative working sessions and an exhaustive review that helped the investor make an informed decision while also helping the startup professionalize its financial management.
Financial analysis
Review of accounting, balance sheet, P&L and cashflow to understand the company’s real situation and main risks.
Tax and labor
Analysis of relevant tax and labor aspects to validate the investment with a complete business view.
Founder collaboration
Working sessions with the founding team to organize information, resolve questions and explain the financial model.
— 03 · INVESTMENT
A due diligence process that helped close the round
The due diligence was completed in July 2025 and gave Faraday Venture Partners a clear view of Hotta before formalizing the investment.
After the analysis, Faraday led the company’s seed round, joined by several business angels from its network. The capital was allocated to commercial expansion, technical hiring and new features based on generative AI applied to thermal systems.
The process also helped strengthen trust between both parties and laid the groundwork for a close relationship with both Faraday and Hotta.
— 04 · RESULTS
An investment built on analysis and trust
Due diligence
Financial, tax and labor review completed in July 2025
Seed round
Faraday led the round alongside business angels from its network
Growth
Capital allocated to commercial expansion, technical team and applied AI
This case reflects the value of a complete due diligence process in early-stage transactions. When the analysis combines financial rigor, tax perspective and an understanding of the operating model, the investor can make better decisions and the startup comes out of the process better prepared.
The collaboration with Faraday Venture Partners and Hotta shows how well-executed analysis can create trust between parties from the start. More than validating an investment, the process helped build a stronger foundation for the next stage of growth.
