Investment & Fund Management

Editora OQO, S.L, a Spanish company specializing in producing books, video, and digital content for children under 10, faced significant financial challenges due to the unique business cycle of the publishing industry. CEO Alfonso Couto highlighted that while their sales peak from September to December, the company incurs substantial production costs in the first half of the year. This timing necessitated external financing to boost production ahead of their busiest sales period.

To address this need, Editora OQO secured an EU-guaranteed loan facilitated by the European Investment Fund (EIF) and CERSA under the Cultural & Creative Sectors Guarantee Facility. Couto explained that traditional banks often hesitate to finance such projects due to the high upfront costs associated with book production and the delayed payment model from bookshops, which can take up to two years as unsold copies are returned.

In addition to their focus on children's books, Editora OQO is expanding into the digital realm, aiming to leverage digital platforms to deliver educational content. They are developing illustrated digital albums, which offer greater creative flexibility compared to traditional print formats. This strategic pivot not only aligns with market trends but also positions the company to better engage with children in a digital-first world. The financing provided by the EIF has been crucial in enabling these initiatives, allowing Editora OQO to innovate and adapt to changing consumer behaviors while ensuring financial stability during their production cycles.