In an era where AI startups and deeptech ventures are revolutionizing the business landscape, the announcement of ElevenLabs investor Carles Reina raising a $15 million solo GP fund, Baobab Ventures, serves as a fascinating case study for entrepreneurs worldwide, especially those operating in defence and AI sectors. As someone deeply entrenched in the startup ecosystem, I see this move as a beacon for ambitious founders aiming to thrive in competitive, high-stakes industries. Below, I’ll unpack the insights entrepreneurs can extract from Reina’s journey, along with actionable strategies, red flags, and lessons from my own entrepreneurial experience.
Introduction: A Turning Point for AI and Defence Startups
The announcement comes at an opportune time. Defence and AI are among the fastest-growing sectors, with defence tech startups redefining smart munitions, intelligence gathering, and national security interfaces and AI startups pushing the boundaries of voice cloning, robotics, and data distribution layers. For entrepreneurs, securing funding for such high-impact fields can often feel impossible. Reina’s success in raising $15 million amidst challenging venture capital headwinds highlights not just tactical precision, but his focus on execution and distribution, a crucial model every founder should study.
For those unfamiliar, Carles Reina, a successful angel investor and vice president at ElevenLabs, built his reputation backing early-stage startups such as Revolut. This makes Baobab Ventures not just another GP fund, but a calculated risk into the future. What makes this fund unique? The focus isn’t just technological innovation but operational execution, how founders scale their products beyond labs into markets.
What Can Entrepreneurs Learn from Reina’s Fundraising Success?
1. Focus on Distribution as a Core Strategy
Reina’s emphasis on product execution and distribution serves as a reminder to entrepreneurs: no matter how groundbreaking your technology is, it’s worthless unless it reaches users efficiently. Reina goes further to identify “distribution layers” as key differentiators. Startups need to focus on customer channels, partnerships, and sales models that get the technology in front of decision-makers.
How to Achieve Strong Distribution:
- Clearly map out which industries your product will impact.
- Invest in customer discovery early, get feedback even before building your solution.
- Build scalable sales systems and reach out to early adopters.
- Study examples like OpenAI or Cursor that excel at putting innovative AI into consumers' hands.
2. Go Global, But Be Smart About Geography
While Reina plans to split investments evenly between Europe and the US/World, he is cautious about entering crowded markets, a solid reminder for founders. AI development in the US might be saturated, but niche markets like defence innovation in Europe or natural language processing in Asia are ripe for controlled expansion.
Red Flags to Avoid:
Reina highlights the danger of entering “very crowded markets” without a unique angle. Startups in saturated areas, like generic AI tools or voice apps, often implode quickly. Avoid merely copying successful models; instead, pivot to underserved industries or regions.
3. The Rise of Solo GP Fund Investors
Reina joins a growing trend of highly experienced solo GPs venturing beyond traditional VC setups. For founders, this signals greater access to funds from individuals with deep entrepreneurial expertise versus corporate bureaucracies. Solo GPs tend to have smaller portfolios, allowing them to invest in laser-focus projects. For entrepreneurs, it's essential to prioritize funds like Baobab Ventures where the GP is actively involved versus passive funding rounds.
Common Mistakes in Securing Solo GP Investment
1. Lack of Realistic Execution Plans
Solo GP investors are often execution-focused, meaning ideas are not enough. Founders need to prove their ability to bring scalable solutions to life, first locally, then globally.
2. Ignoring Collaboration Opportunities with LP Networks
Baobab Ventures is backed by LPs such as Cendana Capital and Isomer Capital. Leveraging synergies with these networks can amplify your visibility in investor circles, so stay proactive in building relationships.
3. Misunderstanding Defence Startups
Defence tech startups work differently from AI applications like consumer voice cloning. They are often bound to government contracts, lengthy procurement cycles, and high compliance costs. Founders targeting defence need experienced mentors like Reina to navigate these pitfalls.
How Founders Can Position Themselves for Success in AI/Defence
Step 1: Prioritize Speed and Adaptability
Reina highlights how quickly ideas replicate: competitors worldwide can copy a solution within days. Entrepreneurs need to install critical pathways into their strategy. For instance, ensure your product evolves constantly with new data insights.
Step 2: Build Trustworthy AI Models
AI startups are increasingly under scrutiny for data ethics and model transparency. Develop trust by applying for certifications like GDPR, SOC compliance, or using fair data access models. Defence-focused startups may need additional licensing or background checks which solo GPs can help navigate.
Step 3: Pitch Investors Beyond the Trend
The "AI bubble" has raised concerns about rushed funding cycles. Avoid chasing trends like generative AI for the sake of buzzwords. Focus your pitch on clear monetizable opportunities, long-term industry relevance, and robust execution strategies.
Bonus Tips: Lessons from My Experience as an Entrepreneur
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Accelerators Matter
Carles Reina’s fund emerges at an ideal time for founders to use startup incubators alongside LP-based networks like Concept Ventures or global funds. I personally benefited from similar accelerators like Brightlands and TU/e Launch, which offer key exposure that may complement Baobab’s portfolio investments. -
Nail Collaboration as Early as Possible
Reina has invested in 40+ startups himself, use his playbook! Collaborate with product managers, early hires, and researchers before locking funding. Solo GPs value synchronized teamwork. -
Defense Founders Must Focus on Their Strategic Edge
If you’re building in defence tech, the “product as service” model, where product fields adapt beyond original military interfaces, is gaining traction. Example technologies like smart robotics or predictive battlefield AI can double as commercial applications, but founders need experience pivoting securely between fields.
Conclusion: A Gold Standard for Future Entrepreneurs
Carles Reina’s $15 million fund offers rich insights into venture capital opportunities truly tailored for scaling startups in competitive markets like AI and defence. For entrepreneurs, Reina’s focus on distribution, speed, and execution stands as a guiding principle in this new era of innovation. I believe Baobab Ventures will act as a blueprint for operational efficiency among rising solo GP funds, a rare opportunity for startups to secure hands-on mentorship alongside capital.
As someone who has often relied on execution-first strategies to grow my own businesses, Reina’s laser-guided portfolio approach offers a powerful roadmap for ambitious founders. Whether you're pitching AI solutions or developing disruptive defence technologies, his fund promises the strategic agility necessary to stand out among the noise.
What’s next for Baobab Ventures? Only time will tell, but founders should start preparing now. Position your startup for future investments based not just on technological novelty but your ability to execute it into something impactful and scalable.
In Reina’s words: "The way of building companies over the past three years has fundamentally changed." It's time founders adapt their game to this new reality.
FAQ
1. Who is Carles Reina and what is his role in the AI and defence sectors?
Carles Reina is a prominent angel investor and Vice President at the AI voice cloning company ElevenLabs. He has been a key figure in early-stage investments for startups such as Revolut and recently launched his solo GP fund, Baobab Ventures, to support AI and defence tech startups. Learn more about Carles Reina
2. What is Baobab Ventures?
Baobab Ventures is a $15 million solo General Partner fund launched by Carles Reina. It focuses on investing in AI, robotics, and defence startups at pre-seed and seed stages. The fund aims to support 30–35 startups with cheque sizes between $300,000 and $350,000. Read about Baobab Ventures
3. What industries does Baobab Ventures target for investment?
The fund primarily targets AI, robotics, and defence sectors. Its investment strategy includes both European and global markets, with an emphasis on groundbreaking technologies and execution-based startups. Explore Baobab Ventures’ focus
4. How does Carles Reina’s fund stand out in the venture capital landscape?
Unlike traditional VC funds, Baobab Ventures focuses on execution and distribution as core drivers of startup success, instead of just technological breakthroughs. It also represents the growing trend of experienced solo GPs who provide hands-on mentorship alongside funding. Learn why Reina’s fund is unique
5. What is the significance of distribution layers in Reina’s strategy?
Reina highlights distribution as a critical success factor for startups, particularly in competitive industries. Companies like OpenAI have excelled by focusing on customer channels and scalable sales structures, which Reina emphasizes as key differentiators. Understand the importance of distribution layers
6. What are some red flags entrepreneurs should avoid, according to Reina?
Carles Reina advises founders to avoid entering markets that are overly crowded and to ensure they bring unique angles to their solutions. He also warns against a lack of execution plans, which can deter solo GPs like him from investing. Discover the common founder pitfalls
7. What are the challenges defence tech startups face?
Defence tech startups often grapple with navigating government contracts, meeting complex compliance regulations, and dealing with long procurement cycles. Founders with experienced mentors like Carles Reina can better navigate these challenges. Learn more about challenges in defence tech
8. Which countries or regions does Baobab Ventures prioritize?
Baobab Ventures has a 50/50 geographic split strategy, focusing both on Europe and the US/World. Reina avoids saturated markets like generic AI applications but sees promising opportunities in underdeveloped niches and regions. Check out Baobab’s geographic focus
9. What trends are shaping the AI and defence tech startup markets?
Faster enterprise deal cycles and the competitive replication of AI products have created a high-stakes environment. Reina underscores execution speed and technological distribution as vital for standing out in these fast-evolving industries. Understand evolving AI market trends
10. How does Carles Reina view the potential for an AI bubble?
While some experts express concerns about an “AI bubble,” Reina remains cautiously optimistic. He believes the industry is still in its early stages despite rapid expansion and advises founders to focus on long-term strategies. Read about AI market risks and bubbles
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.