On itnig’s Podcast #41 Sacha Michaud, one of the cofounders of Glovo shares his take and experience on the hypergrowth of the Barcelona based delivery startup with us, talks about market about delivery and on-demand user experience. Read More
On itnig’s Podcast #40 Albert Domingo, CEO at NexTReT and partner at itnig takes us on a journey through his experiences as business creator but also investor and shares his point of view on project evaluation with us.
Bernat Farrero, CEO at itnig and Juan Rodríguez, CEO at Camaloon speak with Albert Domingo about his experiences and learnings and his advice for fellow entrepreneurs. Listen to our podcast on Youtube, iTunes or iVoox.
I would like to start telling the story about how we met Albert, our first investor at itnig. This story is closely linked to my own story as Bernat. While I was studying computer science at university I did a three months internship at NexTReT, a software company from Barcelona, Albert’s company.
I realized this was not for me and later set out to create itnig. When at itnig we decided to start our own business, I knew we needed funding but I had no idea where to go so I thought about my internship and went to see the founder and director, Albert Domingo. During my time as intern I had never met him but with this idea, very far from reality we eventually got to know each other. Albert Domingo told me very nicely that NO, he was not interested in investing but however we improved and improved the business plan and idea and eventually got to partner up.
This company was Camaloon, Albert invested and told people in his network about it and we were able to close a funding round with 12 partners.
One thing that Albert told me will always stay with me. It grounded me:
When I invest, I am sure about one thing: If I loose my capital, the entrepreneur looses his health.
He told me this very seriously, I got scared but more than anything this sentences has marked me. 7 years later his words are still in my mind — His message was very clear. Commitment and dedication are very important for Albert.
Albert, what is your story? What did you study and how did you create NexTReT?
I studied engineering and then worked in two companies, the last one in network solutions. When at this time, I made propositions of improvements I did not get very far. I decided to set out on my own, reached an agreement of 5 years with my university and this helped me get to met really good professionals. In 1993 there was a huge crisis in Spain and I was still able to reach new clients so I thought to myself: ”If I can do this now in this time, imagine what this could mean in a good economic time in Spain.”
This was the beginning of NexTReT. Our first client was Esade, then an ex-professor of mine moved to La Caixa, later we reached an agreement with TV3, and so step by step we reached a good client base offering our services in informatic systems and infrastructure. Our promise to the CEO is that their information technology will work, no matter the time of day.
Progressively the company grew, now we are 12 partners.
When I met people interested in creating their own business, I was always ready to help. Share my own experience. I like to share and to add value. That’s how I started to get involved with entrepreneurs, because I think there can be many things to start businesses. In 1999 I got involved in a project doing my first investment.
I have invested in many occasions but for me the investment is consequence of sharing. The order is: Getting to know somebody, and only when I feel good about somebody and trust this person, and I see that the person is committed (it’s not about leading an unhealthy life) we can take a step further into investing. Commitment is fundamental.
Commitment is fundamental, in all things in life.
If a person is not committed, no problem, but there won’t be an investment from my side. For me the first thing I look for is mutual trust, then I need to believe that I can add value and lastly the entrepreneur has to see me as adding value. However, investment is my hobby. my life and work is NexTReT and investment is my hobby.
You say you look for entrepreneurs who are committed to their businesses and don’t just leave their projects. Do you believe that there are some occasions when you see that it goes no further?
Yes, of course. There are times when it does not make sense to pursue. You need to know how to loose and when to stop. Right now for example I am in a similar situation with a great entrepreneur from Valladolid. I told the kid you need to stop. You gave it your all. You did the possible, we have lost the project and the investment but you need to stop and dedicate your talent to other projects.
…
There are two Albert Domingo — Albert Domingo from NexTReT and Albert Domingo outside of NexTReT. You say investment is a hobby to you but you dedicate a lot of your time. How do you organize your daily life?
My daily life evolves around NexTReT but of course I always manage my calendar myself. I have my family, my hobbies and organize my life around it.
AT NexTReT we have a General Director, we have a clear organizational structure and the business already works very smoothly. I maintain contact with our clients — that’s where I see my contribution.
What companies are you involved with now?
I don’t need to mention itnig’s startups right? To come back to the beginning of our conversation actually: I don’t remember having told you No but I do remember how we met.
Bernat was a kid who told me he wanted to create a business to sell buttons online. I had never bought buttons but he seemed to be a good kid.
Yes of course I am involved in other companies.The last project for example is a company that automizes vending machines, the decision was very quick, I liked the entrepreneur, it’s an innovative idea and a partner of mine is involved.
What is your advice to an entrepreneur who is looking to talk to you? What are you looking for in a project and in a entrepreneur?
I might not be in line with other business angels but for me, personally, I have a kind of order of what I look for.
First, there needs to be trust, I need to see brilliance in the person, I want to share in the project with other people and lastly I look at the project where I look for potential, a clear market and past accomplishments.
If somebody has a clear idea and wants to share it with me, I am happy to listen. If you look for it you will always find time.
Listen to our podcast to learn more about Albert Domingo’s journey and his perspective on investment and entrepreneurship. Learn more in this Podcast in Spanish on our Youtube channel, listen to it on iTunes or enjoy it through iVoox and subscribe to our newsletter to stay always up to date.
In itnig’s Podcast #39 you’ll hear from Jesús Monleón and his story of entrepreneurship: Cofounder of eMagister, Seedrocket, Offerum, Glamourum, early team member of Trovit and active investor with invested entreprises like Captio, Tiendeo, Redbooth and Mailtrack.
Bernat Farrero, CEO at itnig, Jordi Romero, CEO at Factorial and Juan Rodríguez, CEO at Camaloon speak with Jesús Monleón about his experiences and learnings and his advice for fellow entrepreneurs. Listen to our podcast on Youtube, iTunes or iVoox.
Jesús Monleón, how did you start?
I studied Business Administration and when I was at university I was curious about starting my own business. At that time, around 1996, at university we got an Internet connection and as I had started to think about creating a job portal I found out about Infojobs. I saw they were close by so I went and met Iván Martínez and Nacho González-Barros at the university campus in Cerdanyola.
Later I started working in the financial sector, but I quickly realized that this was not for me so I left and decided to create a business with my cousins.
This is when emagister.com — a search site for classes — was born in 1999.
Why emagister?
I thought to myself “If Infojobs went well, what I can do that is related?” At that time there were a lot of educational offers in the newspaper and everybody was already talking about how Internet was going to change education.
The first thing I thought was that to start out we need a team and so I gathered my cousins: I was the oldest with 22 years and then there were my cousin Juán Ramón, who was an engineer, another cousin Jordi Castellò had studied economics and Monica joined us in administration / finance.
We already knew each other, we even had created an ice cream kiosk at High School together.
We found our first investor and now really had to think about how to get this started. That’s when I remembered Grupo Intercom and called them up. And we set out to work. Our expectations were far from reality: In the first year we made 600 Euro in revenue, our prevision was of 6 Million Euro.
We had traffic, we knew that people were confirming classes through emagister but we hadn’t yet figured out how to monetize it.
Thousand of tests later, we still had no business model and we had given ourselves a year to get this working. Through an outside input to change our contact forms and ways to connect schools & students, we switched to a model based on leads. That’s when emagister takes off. We had traffic, a working business model and very few competitors. This was the beginning in 2001.
What did you do after emagister?
From my experience at emagister I saw that being part of a startup was tough and my impression at that time was that Internet was a bluff, entrepreneurship was shit, and only investors are winning.
So I went into the financial sector to make some money. I moved on to La Caixa’s Venture Capital department. With a team of four people we were searching for Catalan operations for the bank. I got tired after a while and needed some more action. I was part of the start of the bank’s Venture Capital department for entrepreneurs — a very interesting experience with very good investments — and decided to start again. That’s when I met the Trovit team and joined them.
At Trovit everybody was very techy, we were making money with adsense, my role lay in business development. First we sold Banners and then set up a pay per click system. I built up our commercial team.
Trovit went very well. It’s a good business. A company generating EBITDA.
*laughing*
As an entrepreneur but also from the other side as investor I have learned that investors are not my friends. As an entrepreneur I want to drive the company, drive the bus and want the investor to join the journey, to hop on the bus but not to interfere with me driving.
I don’t like to depend on investors. Investors are not your friends.
Years later I founded Seedrocket, as something I would have like to have when I started out with emagister. Seedrocket is an association without profit focus, we are a group of friends who have known each other for a long time and work together.
I was looking for people who could help me with their experience and place . a minority investment.
In 2007 I met Vicente Arias from Softonic, Grupo Intercom, and we talked about creating an incubator or investment fund. We were looking at YCombinator and Seedcamp models, just when YCombinator was starting out in the US. So we invested small amounts of money, 20.000 Euro, in three projects, offered offices and mentorship. I was looking for people who have had experiences creating companies, sharing what they have learned not in technical terms but more about relationships with cofunders, investors…somebody who has gone through the same as the entrepreneur.
The accelerator business model is really hard and I saw it would lead me to do things i was not fond of like selling to big corporates. So we are just a club of friends.
Follow the rest of his story and reflections in the podcast:
And today, what is your day to day life like?
I am spending my day on the phone. Basically spending my time on Seedrocket for founders fund, talking to entrepreneurs all day and to my own small investments. Spending my time talking to the different business.
Today I live off my own investments. It started out as ahobby and evolved into investments who have brought high returns.
As an entrepreneur, what do you recommend? How to start a technological project?
First thing, find a team. And then, launch.
Find the best team. This does not have to be a guru, nor the most experienced person but good people.
How do you define good people?
There are people with a certain talent and attitude.
I don’t mean technological capacities — Especially if the founding team are able to gather smart people around them and give less experienced people the chance to learn. This was amazing at Offerum, the team was growing with the company. When you are 23 years old, you don’t have any experience, everything you do is for the first time, but some people have a certain talent, a capacity that can be build out.
The hardest is finding good people. And there is no manual. And what is ‘good’ is hard to define.
Even talking to professional investors, the topic of good people has no answer. I think it boils down to ‘perception’, the perception you have of the person.
What is the last investment that you are crazy about?
Tuvalum — a bike marketplace.I like it because it combines SEO and a marketplace, of demand and offer, which gives room to arbitrage. It’s a very interesting project now and I believe it’s replicable internationally. In 3 years I have no idea how I will see it, this is pretty random but at the moment I really like it.
Listen to our podcast to learn more about Jesús Monleón and emagister’s journey. Learn more in this Podcast in Spanish on our Youtube channel, listen to it on iTunes or enjoy it through iVoox and subscribe to our newsletter to stay always up to date.
There is always a moment in my daily life at itnig when a startup asks for a video. Sometimes it’s an ad, sometimes an event, sometimes it’s just a tutorial, but no matter what it is, it comes with the need of creating a sound that represents the company and can be played at the start of the video along with the appearance of their corporate logo.
This short sound must represent their essence, it has to have their DNA reflected somehow: a representation of their values, their culture or maybe even something related to their name or logo. It is mainly an artistic process that requires inspiration but in some cases the startup name and culture is geeky enough to allow some rational thinking into the music composition process. Last week I crafted the sound for our startup Factorial, inspired by the mathematical operation their name represents.
Putting a mathematical operation into sound requires a bit of imagination as well as a set of rules to get started. The first step was assigning values to notes. I decided to assign C4 the value 1. It is the middle key in a piano and also the middle C according to the International Pitch Notation so it seamed and appropriate value for that key.
Piano keys, notes and assigned values
Now we had to decide which factorial operation to represent. That is, choosing an x to which we would perform x! and represent it. Being the startup name Factorial and given that it starts with an F, it made sense to perform the operation on F4, the first F we would find after C4.
Now that we had chosen to start at F4 we just had to assign notes to the operands in the operation and put them in the score.
4! = 4*3*2*1 = F4 E4 D4 C4
Now we had a simple downwards scale without much musical interest but how could we enrich the melody and still make it part of the factorial operation?
As we manually start to calculate the factorial operation of a number and before we get the result, we obtain partial operands that are part of the process. How would the melody sound if we added those partcial numbers to the score?
The size of the partial operands makes the need to place them on a staff above obvius. Also because of the sequentiality of the operation we put the partial operands once we have been able to obtain the result, that is after the first note and while the second note is playing.
The first partial operand is obtained after multiplying F4 and E4 wich is the same as 4*3 which equals 12 that represents a G5 if we check the keyboard note to number assignation.
F4 * E4 * D4 = G5 * D4 = 12 * 2 = 24 = E7
If we keep calculating we obtain the note E7, which is the result of multiplying F4 * E4 * D4.
Finally, we obtain the same E7 after multiplying the previous result by C4, which has the value 1.
If you are curious to listen to how this mathematical representation of the factorial operation sounds like, play the video below.
https://www.youtube.com/watch?v=YLZOjWyxliY