Nauta is a pan-European, early-stage VC focused on B2B software. I am a Partner based in our Barcelona office, I’ve had the privilege of working closely with many innovative companies for nearly seven years. I have seen most of them grow and expand, several of them exit successfully, and of course, a few of them fail. This experience has allowed me to understand the strategic and operational challenges innovative companies face as they develop, and in turn this understanding helps me every day to provide guidance for companies both in our portfolio and in the pipeline.
Before Nauta, I gained international experience in venture capital when I worked for Telefónica’s corporate venture arm and when I interned at Kennet Partners in London. Prior to VC, my background is generalist: I studied engineering and business, qualified as a chartered accountant and have worked as a credit trading desk analyst and business consultant.
Which industries are you working in?
We invest in any type of B2B software, and we are agnostic in terms of the industry they serve or their Average Contract Value. We have invested in software to manage holiday lettings or travel agents; to companies that support the sales and marketing of retailers or insurers; through companies that improve the cybersecurity or build scalable quantum computers for governments.
Unsurprisingly, many of our recent investments are attempting to disrupt their industries by developing their own AI models or using LLMs. For example: Danelfin, which offers AI for retail investors to pick stocks, Acai Travel, whose AI powers efficient travel agent operations, and Wegrow, that enables the re-use of productivity best practice in multinationals.
We have noticed that AI brings about critical issues on security and privacy to companies and individuals around the world and, hence, AI governance needs to be carefully managed. That is why we invested in TrustWorks, whose solution helps streamline data privacy operations and AI governance, and in Netbird, that enables fast, reliable and secure access to networks.
What do you look for in a founder?
As far as I know, there is no exact formula for the perfect founder or founding team, but I have seen several traits appear more often than others in successful founders. For example, the capacity to lead and attract top talent is key, and certain individuals are like magnets thanks to their storytelling skills and self-confidence. Will, grit and resilience are mandatory; while vision and decisiveness based on rational analysis are highly recommended.
I look for founders who are good enough to build something that will attract a very high purchase offer and who are mad enough to reject it. This usually happens when the founders are not driven by money, but by a mission that is personal to them or by a massive “chip on the shoulder”. These founders usually have higher than average levels of self-awareness, ambition and trauma.
However, it isn’t just about the founder but the team. An attractive founding team combines the following three profiles (not limited to one per person!): the visionary, the maker, and the seller. Finally, the team should fit with the problem/job to be done, and, ideally, have previous experience in the industry and/or high-growth companies.
Can you talk about your current portfolio?
Nauta has invested in European B2B software for 20 years. We are interested in highly ambitious, capital-efficient companies that strive to disrupt industries by using technology. Our portfolio companies should all have the potential to become a market leader by creating or reinventing an industry using software and with the capacity to generate high profit margins in the long term.
We lead at Seed and Series A with initial tickets of €1M-€6M. We invest in companies from having early product traction with clients (even if pre-revenue) to a few million of annual run-rate in revenues. Today, our portfolio companies range from Series C with double digit millions in ARR to pre-revenue deep tech companies we have backed through Nauta Labs.
Some exciting examples in our portfolio are: Tangany, a German company that offers seamless and secure management of crypto assets, Universal Quantum, a UK company that aims at building scalable quantum computers, and Treblle, a Croatian solution for engineers to manage APIs.
A common feature of Nauta’s portfolio companies is that they follow a strategy that combines ambition and speed with efficiency of capital and rational decision-making. We want them to achieve a large enterprise value but protecting the enterprise value created for the sake of our founders and investors.
What does the future look like?
The future is very exciting for Nauta. Our team is around 20 people now across Barcelona and London, we have a pipeline of great opportunities and a couple of new investments still to be announced. After being in operation for so long, we’re privileged to see fantastic companies across Europe and meet inspiring founders every day.
The future is also very exciting for Europe’s innovation ecosystem. Although many commentators question when Europe will produce its first trillion-dollar company, we should not forget how far we’ve come and that $426B has been invested since 2015 (which is ten times more than in the previous decade). Patience and long-termism are virtues in VC and we think that, in time, amazing things will happen in the European startup ecosystem.
I've been lucky to witness firsthand the remarkable growth and evolution of the tech sector in Europe, first in London and later in Spain. For instance, when I moved back to Spain in 2014, the combined enterprise value of the Spanish startups was modest, but a decade later, this figure has surged to €100B, cementing Spain as a one of Europe’s most important startup ecosystems. I believe in the next 10 years many other European countries (such as Italy’s) will grow in an equally explosive manner.
What makes Nauta different?
Nauta is one of the few VC managers that are truly pan-European, specialised, and have a proven track record of distributions across multiple funds. We are patient and trustworthy, mature and ambitious, disciplined and reasonable.
Few of the VCs that existed when we started in the 2000s are still around today and that makes us one of the most experienced investors around. The key to this longevity has been a disciplined, consistent and resilient investment strategy.
Our portfolio founders have consistently said they choose Nauta because of our experience supporting and scaling B2B software companies. We talk straight but we stand by our founders. We truly align with and support their vision as a partner.
What one piece of advice would you give founders?
The road to build a successful company is very long and hard. There are many waves along the way, most of which you cannot predict but must find a way to navigate. There are too many battles (raising resources, finding and serving clients, fending off the competition, managing talent, etc.) to fight alone or with the wrong people by your side.
You must find the right people to join you on the journey. Whether that is co-founders, early employees, advisors or investors, make sure you are supported by people who can help steer the ship in choppy waters. We try to be one of those supporters wherever possible, at least, put you in touch with someone who can.
Borja Breña, Partner at Nauta.
