Scaling Europe
00:06:45 · Carlos Trenchs Sainz de la Maza
[00:06:45] S1: Yeah. So I can put you these three examples of three different companies. One could be Bayors. Bayors is AI for health and they are, I would say, disrupting the I would say, the processes, no, among drug discovery and other things. This is a clear example of international talent landing in the city. So in this case, one fund that was backed by Aldea decided to invest, no, in a Portuguese guy, no, moving to Barcelona. And and we we co invest and we help him, no, to to to better land in the in the city. No. So Bayors is is amazing. Today, Bayors is they are around 200 people. Officers, not only in Barcelona, also in Austin and New York. They raise a well known series A and and and is growing, growing very, very fast. A clear example of AI and health that probably are two areas where Barcelona is is is quite is quite strong. This is one one example. And another example probably is Prosper. I don't know if you know the the guys. These are two Catalan guys, living in New York. And and they do, also AI, but for, I would say, the healthcare, hospitals, no, and and and systems, And how to improve processes there. In this case, the company is an American company. They have super investors, the tier one investors in The US. But they also create a subsidiary in Barcelona with all the tech, people created here. So we also were lucky to to co invest of them. And another possibility is, local people. Is a company in Spain called, Format, for instance. People, they do AI for fashion. So they are working today for most of the most of the well known brands, no, and helping them not only on the design process, but also on the manufacturing side. So three examples, no, of Catalans building here, international talent landing here, no? And and and in this case, people in the world know with links in in Barcelona that raise, I will say, from, I will say, well known fans. And we help them, no, to better connect, no, in this in this ecosystem.
00:09:06 · Sebastian Johnson
[00:09:06] S0: And talk to me about Masia House. This is like a really exciting thing that you've just announced. What is it? Who's it for? So
00:09:13 · Carlos Trenchs Sainz de la Maza
[00:09:13] S1: as I mentioned, our role, we are a tiny fan. So 80,000,000 is nothing, no, compared with the big numbers, no, that are announced. But the idea for us is we want to be quality relevant. So the idea is be able to participate in the best companies, no, in in connected with this ecosystem. So how we can do it? No? We can do it if we can help them to better connect. And to connect, having a physical space is is is relevant. So, we we finally decide to to to to have a house in the in the city center of Barcelona. It's a it's a fantastic facility because it belonged to a designer and and and the thing is is fantastic. So if anyone is coming to Barcelona, please visit us. But the idea is to to have a space where we have a venture capital residency program. So we have a space where international funds have their office, no, in the in the city. So they have a private bedroom with a toilet and with desk and so they can receive and stay with us. When they are in the city, we have a fantastic dining room. We have facilities and a garden where we organize off-site things. The main idea is to put together the commodity. If you have 70, individual LPs, no, we have 45 in this moment portfolio companies that probably we will arrive 65 in in in two quarters. And we have more than 60 international VCs that have co invested with us in the city. When all these people are together, no, being able, no, to to to meet in one place, no, and and to do things together make make a lot of sense. And also we are thinking, no, to to expand, no, the other activities in Masia House for potential new founders, help them to better connect, no, with with with with investors and with experience.
00:11:10 · Sebastian Johnson
[00:11:10] S0: And so it's, I think it's an amazing thing to do. Right. And I'm personally super excited to come in and check it out and have a look. Why was this something that was like that you wanted to do? And why not? Know, because you're right, this is in your first fund relatively small compared to how it could get some of other funds. Why was this the right time? And why would you why did you want to do it?
00:11:32 · Carlos Trenchs Sainz de la Maza
[00:11:32] S1: So this is a good question. So two things though. First is people think that venture capital is finance. And this is a people business. So where where relationships matter matter a lot. And this is a business built on trust. And and I have, it's very important, no, especially for a model like us, that is a more community driven fan, Having a space where people can meet, can discuss, can socialize, no, and can, and can do things together. So, we started and I think that you you came to our old offices, we had a nice building, with a with a good, meeting room, no? And we started organizing small breakfasts, and small meetups. And we realized that that was something really useful. Be able to put people that matters in the same table is something that adds a lot of value. So, so we decided, okay, if Masia is doing really well, no, and this is our playbook, no, and we think to fundraise our second fund, no, in in Couture. So our, I will say, moat, no, needs to be, you know, in this case, a physical physical space. So we have the community, you know, we have the portfolio, we have the connections. But having the physical space that helps, no, to to, I would say, have the clue, no, to to put all together, it makes out.
00:13:03 · Sebastian Johnson, Carlos Trenchs Sainz de la Maza
[00:13:03] S0: It's amazing. I can't wait to come see it. Talk to me about the future then. So you've already invested. I think you said 45 checks. You're gonna get to 60 or 65. So you've already deployed a lot of the first fund. Are you thinking about a second fund? What does that look like? Are you gonna stay stay small, stay early? Is there an opportunity to raise, you know, like a follow on fund? What does that look like? [00:13:24] S1: So for second fund, it will be more or less the same. So probably we will grow now from 18 to 25, but no more than that. I think that, in this busy world, especially for LPs, size matters. And depending on your size, it conditionates your strategy of investment. And size matters in our case because we want to be in all the great companies. But we don't want to compete with anyone. So we are able now with this size of fund to write a small cheque that is able to fit, no, in in this very competitive round, no, without competing with with others. If you are... So our typical cheque is something from two hundred, two hundred fifty thousand euros. So if you raise a seat round of 3,000,000, so having room for $202,115 is something that, okay, you can you can you can you can fight for. But if you are writing 500, no, 700, so probably, no, there is not room for you. Or you need to compete or you need to lead, no, in this in this case. [00:14:34] S0: So