Certus completes its first year of investment activity. We take stock of what we have learned, the opportunities evaluated, and our vision for technology investment in the middle market.
Twelve months ago we launched Certus, our technology capital division, with the thesis of investing in technology companies that solve real middle-market problems. A year later, it is time to take stock.
In twelve months, we evaluated over sixty technology investment opportunities. Of those, fifteen passed the initial filter (relevant sector, credible team, commercial traction). Of those fifteen, five reached due diligence. And from those five, we closed our first investments. The funnel is selective — that is deliberate. We seek quality, not volume.
The middle market does not need Silicon Valley technology. Spanish SMEs need tools that work, can be implemented in weeks, can be used without an IT degree, and demonstrate ROI in the first quarter. The best-fitting companies are those that designed their product from the middle-market customer perspective.
The sales team matters more than the technical team. In traditional VC, the technical team is prioritised. In our experience, what determines success is the ability to sell. The product can be excellent, but without a commercial team that understands SME owners and manages trust-based sales cycles, the company will not grow.
Portfolio synergy is real. Several of our portfolio companies piloted Certus companies’ products, providing feedback that improved the product and commercial references that accelerated adoption.
Patience applies in technology too. In VC, the urgency to scale dominates. At Certus, we apply Blue Mountain’s patient capital philosophy: sustainable growth, healthy unit economics, medium-term profitability.
For 2024, the opportunities that excite us most are in: applied AI (language models and machine learning applied to concrete middle-market problems), vertical SaaS (specialised software for specific sectors — hospitality, logistics, industrial services), and cybersecurity for SMEs (the accelerated digitalisation of SMEs has created vulnerabilities most owners do not even know about).
Certus is not an experiment. It is a strategic bet by Blue Mountain on participating in the technological transformation of the Spanish middle market. We believe that in five to ten years, our portfolio companies will be significantly more technological than they are today. Investing now in the companies that will facilitate that transformation is a smart way to anticipate the future.
First year complete. Many more ahead.
Dirk Manuel Martens Jimenez Founder, Blue Mountain Capital
By Blue Mountain Capital
By Blue Mountain Capital
By Blue Mountain Capital
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