As the average conversion rate of most websites hovers at around 2.35%, it’s no surprise that only 22% of business owners are happy with their website’s performance.
Of course, there are many factors that contribute towards low conversion rates, but the fact that most websites are developed with a ‘one-size fits all’ strategy plays a crucial role.
And as technology advances and changes how we search, discover and buy; the desire to adopt hyper-personalisation tactics grows.
One such tactic is the adoption of chatbots across many sectors. We have already seen how chatbots became the hottest must have in 2017 — with the global chatbot market expected to reach $1.25 Billion by 2025.
However, while chatbots hit mainstream headlines, these AI-powered applications are still a work in progress. Reliance on natural language processing (NLP), means that chatbots are able to only deliver with 30 % accuracy — often leading to user frustration.
As a result, Conversational Interfaces (CL) also known as interfaced-based chatbots, have emerged as the alternative solution to personalise website experiences by bringing hyper-personalisation and real-time communication functionality into the market.
And this is where Nauta Capital’s latest portfolio company comes in. Announced this week, we’re thrilled to share Nauta’s $2.2M investment in Landbot.
Founded in 2016, Landbot is a SaaS platform that allows customers to generate conversational interfaces through a chatbot builder with a drag and drop functionality and dashboard for lead management. Positioning themselves as the ‘anti-AI’ chatbot solution, Landbot is revolutionising the way companies engage with their customers by providing a frictionless experience.
Landbot’s customers can use the platform to introduce and promote new products, capture leads and increase conversion rates by 3–5x –all without the need for resource-heavy AI-chatbot.
By focusing on the SME market, Landbot’s addressable market size is estimated to be more than €17b at a time when most small and medium-sized businesses are faced with poorly performing websites, low conversion rates, and limited resources to invest in the costly AI-powered chatbots.
It’s for this reason that Landbot has been able to achieve virality and traction which caught Nauta’s eye.
In less than a year, the company has acquired more than 900 clients across a range of sectors and geographies — with a 30–40% MRR Growth MoM.
Another fact that caught the attention of our investment team during their initial meeting with Landbot, was the experience of its founders.
The Valencia-based founders of Landbot, Jiaqi Pan and Fran Conejos, are not new to the startup world — having founded several startups in the past and coming with deep-technical training.
As part of the investment, Nauta’s General Partner, Jordi Vinas will join Landbot’s board who will work with the team to scale their product development and enter exciting new markets.
Check out Jiaqi’s interview with TechCrunch about the news and help us welcome Landbot to Nauta by sharing this exciting news!