Nexten has set out to help to solve the tech talent gap in Luxembourg and beyond. To fuel its growth, the startup just closed a new funding round, which Founder Eric Busch explained to us in more detail.
by: Torge Schwandt
featured: Eric Busch
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How much capital did you raise and from whom?
Overall, we raised 600,000€ in seed funding. Luxembourg-based VC firm Expon Capital led the round with 400,000€ being invested from its Digital Tech Fund. Existing investors participated as well by contributing an additional amount of 200,000€.
How long did it take to close this round?
It took about one year from the first discussions with Expon Capital to coming to terms and finalizing everything. We were in touch with them throughout this time. After we had pivoted Nexten‘s commercial strategy in the fall of 2019, things accelerated and we closed the deal in just about 2-3 months. So basically after the initial contact, we first needed some time to work on our product and business model. But then the timing was just right to pick up the conversation with Expon‘s team again a few months ago.
“We will use the investment to launch Nexten 2.0 in April this year.”
What are you planning to use these funds for?
Primarily, we will use the investment to launch „Nexten 2.0“ in April this year. In accordance with that, the goal is to grow our own development and product team as well as to hire more members for our sales team. We plan to continue to focus on the Luxembourgish market in the near future and to further push the community-building aspect of what we do as a company (see our article “Share your ideas and contribute to a new developer conference in Luxembourg“). But we are also already considering the expansion into new markets of course.
What can you recommend to other founders who are trying to raise seed rounds?
The most important thing when talking to VCs is that you feel comfortable. That means that you need to have a certain connection or chemistry with them. This is crucial as you will work with them for years to come. Every VC has their own culture and vision. So you have to listen carefully to figure out if it is a match with you and if you can see yourself working with them for a relatively long time. Never work with a VC just for the money.
Moreover, founders need to figure out what type of investor makes most sense for them. You can also raise a seed round from Business Angels or an industry-specific investor like a corporation. All these options have certain advantages. But for us, it was clear early on that we wanted to work with a VC. Given our growth plans with a possible expansion into Belgium and Germany, including the ambition to raise a Series A in about two years, it was the best option to start working with a global VC firm like Expon Capital that has the expertise and experience to support us on our journey in many ways in the coming years.