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
00:14:34 · Sebastian Johnson, Carlos Trenchs Sainz de la Maza
[00:14:34] S0: So [00:14:34] S1: I think that if our strategy is to to to have, no, continue having this collaborative approach, not to participate in this in this good companies, You need to have a fund size, no, that that that fits with with this strategy. And the second thing is, if you have a fund size, of this order, your fundraising process is, I will say, faster, than if you want to raise a figure fund. And second, our model also is similar to an angel ticket. As we invest in proceeds and we take, let's say, 1% ownership of a of a company, and we don't have enough money, not to do a lot of follow ons, we are able, not that, probably put a little bit more of money at seed stage, but not in series a. If we are doing this, when the company is growing so fast, no, probably in Series A plus or Series B, I can raise my hand no, and try to liquidate part of my owners, no, to sell through secondaries. So it's similar this strategy than a Business Angel, than a traditional venture capital that needs to be until the company is sold, no, or until the company is. So I think that having this this model also helps to have DPI's, no, earlier than traditional funds. So for me, it's it's the sum of these three things is merging this in this in this strategy.
00:16:02 · Sebastian Johnson
[00:16:02] S0: And you spent a lot of your career out there kind of judging or allocating capital to emerging managers. How much did that influence the strategy on the other side? Right now, you've got this fund. You spent a lot of time allocating capital to emerging managers. The strategy that you've spoken about, how much did that come from being sort of like an LP looking at it the other side and yeah, thinking what would be compelling from from that perspective.