Austrian Fund of Funds: Austrian Economics Minister Kocher proposes Fund for Startups

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Economics Minister Martin Kocher has introduced a notable proposal: an Austrian Fund of Funds for Venture Capital. The idea follows the intention of ÖVP, to strengthen Austria’s position across all economic sectors. Berthold Baurek-Karlic, CEO of Venionaire Capital, sees potential positive developments for Austria as a business location in this proposal. 

How would it work? 

Institutional investors such as pension funds, banks, and insurance companies—holding a combined total of around 280 billion euros—are being encouraged to contribute to a fund supported by the government with favorable conditions. An initial capital allocation ranging from 500 million to 1 billion euros from institutional investors is being considered. The ministry suggests government guarantee elements, where the public sector would protect investors from a certain portion of potential losses. Minister Kocher also mentions potential tax incentives, which could make these investments appealing even for individuals through tax exemptions. These measures, according to the minister, pose minimal risk to the state but could greatly benefit young companies. 

Insights from the CEO of Venionaire Capital 

The idea is not new; it was introduced over 6 years ago. It is a project that the Austrian government has never delivered, while other countries in Europe successfully did. Moreover, the start-up scene has been calling for such a fund for years. “It took the government years to come up with FlexKap; a few changes to the Limited Liability Companies Act would have been enough. A fund of funds would have had a much greater economic benefit than a new company act. Why was it not implemented as planned?

The market would become more attractive for international funds (as they would likely open offices in Austria), which would make follow-up financing easier for domestic start-ups and fewer companies would move away,” says Berthold Baurek-Karlic, CEO of Venionaire Capital and Austrian Business Angel of the Year 2023. If these start-ups were kept in the country, there would be more new jobs and tax revenue for the state. “At the moment, we are just a great exporter of talent, it’s a crying shame,” says Baurek-Karlic. 

Timing of the Proposal: Strategic Considerations 

It’s likely no coincidence that Martin Kocher is revisiting this proposal now, with elections just a month away. While the start-up community generally welcomes the idea, there’s a clear sense of frustration. Back in 2020, then Minister of Economic Affairs Margarete Schramböck promised to launch a similar fund “within days.” The initiative was included in the government program, and politicians frequently praised the concept. Yet, as of late August 2024, the situation remains unchanged: another announcement, but no action.  

Read the original article of DerStandard from Andreas Danzer in German here: https://www.derstandard.at/story/3000000234161/wirtschaftsminister-kocher-schlaegt-fonds-fuer-start-ups-vor-was-das-dem-staat-bringen-wuerde?ref=article  

Startup Scaling Strategies Part 2: Trust Building and Customer Growth

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In the previous discussion on startup challenges, we explored how entrepreneurial ventures often fail to become established firms. Many startups falter as they navigate the “valley of death,” struggling to scale operations and grow their customer base. Successfully overcoming these challenges is crucial for new ventures to reduce the risk of failure and ensure long-term survival. One essential strategy for navigating this transition is trust-building, which helps startups gain internal and external legitimacy and overcome the liability of newness.

The Liability of Newness

New organizations frequently face the liability of newness, as identified by Stinchcombe (2000). Founders encounter higher perceived risks because their ventures are often unknown and unproven. This challenge aligns with findings by Rao and Costigan (Costigan et al., 1998; Rao et al., 2008) that emphasize the importance of building trust among customers to ensure the survival of entrepreneurial ventures. Trust-building is crucial for overcoming this liability and establishing legitimacy (Spremann, 1988; Stinchcombe, 2000; Welter, 2012).

Strategies for Building Trust

Trust can be built through strategies such as branding activities, maintaining a consistent online presence, participating in events, and engaging in transparent communication. These efforts help ventures establish both collective and personal trust. Collective trust is where individuals trust the organization, and personal trust is where the founder’s personal brand bolsters the venture’s credibility (Welter, 2012). By reducing perceived risk through trust-building, startups can increase customers’ willingness to commit, confirming the Commitment-Trust Theory (Morgan & Hunt, 1994). This approach aligns with Aldrich’s (2005) view on the importance of trust for entrepreneurs introducing new products to the market.

The Role of Branding

Branding emerged as a critical strategy. Personal branding is especially important in a startup’s early stages, as it fosters perceptions of seriousness, competence, and credibility. As ventures mature, corporate branding becomes increasingly important (Sichtmann, 2007). Founders can enhance their personal brand by demonstrating expertise, networking, speaking at events, and leveraging past experiences and relationships (Aldrich & Fiol, 1994; Stinchcombe, 2000; Picken, 2017). Social proof, such as positive feedback and public endorsements, significantly impacts perceived risk and credibility.

The Power of Communication

Consistent and transparent communication further strengthens customer trust (Wiesenberg et al., 2020b). Honest and professional communication aligned with the company’s values builds trust over time. Two-way communication, such as customer feedback and reviews, enhances customer satisfaction and trust, particularly in B2B contexts. However, excessive communication can breach trust, highlighting the need for balance (Petkova, 2012).

Building Strong Relationships

Strong relationships are vital for business success. Personal ties and high-quality customer service are crucial for growing and retaining a customer base, especially in B2B ventures (Berry, 1995; Geyskens et al., 1998; T. V. Nguyen & Rose, 2009). While referral marketing may not be essential initially, it becomes more relevant as the venture matures. Conversely, word-of-mouth (WOM) is a primary goal for many startups, as it is a cost-efficient and effective method for generating customer loyalty and acquisition (Buttle, 1998; Harisalo et al., 2005; Ngoma & Ntale, 2019).

Refining the Theorized Model

Revisiting the theorized model confirmed the importance of branding, communication, and relationship-building. However, the importance of referral marketing was downplayed in the early stages of the entrepreneurial lifecycle. This comprehensive approach to trust-building provides a robust foundation for new ventures to overcome the liability of newness and achieve sustained growth.

Introducing New Elements

Customer feedback, such as reviews and co-creation, was introduced to the model as its relevance for customer base growth emerged from the analysis. A key finding was the importance of showcasing the venture’s track record. Showcasing past successes leverages historic trust to build future trust. This practice helps retain customers by sharing success stories and attracting new customers drawn to the venture’s proven track record. WOM was discovered to be an overarching driver of customer base growth, enabled by the trust-building strategies and practices mentioned above.

Actionable Steps for Implementation

To facilitate the managerial implementation of these findings, five actionable steps have been developed:

1. Prioritize Trust-Building Strategies

Trust is essential to overcoming the liability of newness and ensuring customers commit to your venture.

Action: Implement personal and corporate branding activities, build a consistent online and offline presence, and engage in transparent communication.

2. Leverage the Founder’s Personal Brand

Showcasing credibility and expertise can help you be perceived as a domain expert. Leveraging the founder’s network helps gain from historical trust.

Action: Engage in public speaking, networking events, and utilize past experiences to enhance perception as a domain expert.

3. Focus on Relationship Building

Relationships are key to successfully growing the customer base, as they enable both customer acquisition and retention.

Action: Invest in relationship marketing and curate personal relationships offline. Implement personalized customer service and a CRM system. Regularly check in with clients, especially in the B2B realm.

4. Showcase Your Track Record

Ensure people know about your historic successes. Communicate your track record in your marketing and sales strategies to leverage past trust.

Action: Ask past and current clients for recommendations and statements on your work. Highlight your venture’s successes in your communication strategy.

5. Capitalize on WOM

Positive WOM is a powerful, cost-effective, and long-lasting marketing tool for customer acquisition and retention.

Action: Engage in the above-mentioned strategies, ensure high customer satisfaction, encourage two-way communication by introducing reviews and customer feedback (e.g., NPS scores), and share customer success stories.

Applying these five actionable points can contribute to the survival of the transition phase and customer base growth of scaling entrepreneurial ventures. By focusing on trust-building, branding, communication, and relationships, startups can successfully overcome the liability of newness and achieve sustained growth.

 

Author: Sylvie Steinegger, Msc

Startup Scaling Strategies: Overcoming The Valley of Death

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The Challenge of Startup Survival

Entrepreneurial ventures aim to bring novel ideas to life. Despite their brilliance, 90% of these ventures fail to become established companies (Krishna et al., 2016). As they grow, startups face different challenges at each stage of their life cycle. Successfully becoming an established firm is crucial to reducing the risk of failure (Picken, 2017; Rayport, 2022). The most dangerous phase is the “valley of death,” or the transition phase. During this phase, startups must prepare to scale and grow rapidly, often with limited resources (Graham, 2006). Successfully crossing this chasm is essential for a startup to expand operations and grow its customer base.

The Importance of Scaling the Customer Base

Early-stage startups often start with a small user base—typically their lead users. To become an established company, ventures need to scale both the firm and the customer base. Scaling often presents a significant risk, leading many startups to fail. They must address market risks and position themselves correctly (Picken, 2017). Research into strategies to overcome these challenges and the role of trust in this process is ongoing (Welter, 2012). Moreover, understanding the link between trust, entrepreneurship, and marketing practices to expand the customer base remains a key area of study.

Exploring the Role of Trust in Entrepreneurial Success

A qualitative study interviewed 32 experts in entrepreneurship, including founders, investors, professors, and growth leads. This study adds to the literature on the connection between entrepreneurship and trust. It focuses on how startups can acquire and retain customers by engaging in trust-building strategies. The research explores how these strategies can be used to scale the customer base. The study does not focus on any specific industry or geography.

Research Aims and Findings

The research explored the relationship between scaling a growing venture and achieving customer base growth through customer trust. The author theorized that building trust positively impacts customer base scaling during the transition phase. New ventures often face the liability of newness, where trust is crucial. Successful customer base growth is vital for reducing the risk of failure.

A Two-Staged Model for Building and Leveraging Trust

The study tested a two-staged model through expert interviews. In the first stage, new ventures build trust by adopting proven strategies from the literature. These strategies help organizations gain customer trust. In the second stage, ventures leverage this trust to grow their customer base through marketing practices. The author proposed strategies to enhance trust during both stages. This approach helps ventures scale by growing their customer base and successfully navigating the transition phase.

The Critical Role of Trust in Startup Success

The interviews showed that trust is crucial for startup survival. Building relationships with customers before, during, and after purchases is important. The trustworthiness of the founding team also plays a significant role. Being recognized as a domain expert enhances trust in the customer base. Transparent, simple, and consistent communication further builds trust.

Leveraging Trust to Drive Customer Growth

Consistent relationship-building, customer feedback, and focusing on satisfaction are key to leveraging trust. These practices lead to customer base growth and increased word-of-mouth (WOM) promotion. Building and leveraging customer trust positively impacts customer base growth. This approach enhances the survival chances during the transition phase for scaling ventures.

 

Author: Sylvie Steinegger, Msc

Navigating the Future of Web3: Insights from Berthold Baurek-Karlic, CEO of Venionaire

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During the annual World Venture Forum in Kitzbühel, BTC Echo‘s Editor-in-Chief Sven Wagenknecht interviewed Berthold Baurek-Karlic, CEO of Venionaire about the World Venture Forum becoming a crypto hotspot on the first day, about timing when it comes to crypto and about today’s environment for M&A deals.

 

The Transformative Power of Blockchain

In Web3, timing investments is less important than the transformative power of blockchain technology itself. We’ve seen the World Venture Forum become a bustling hub for crypto innovation , now celebrating its tenth year. What started as a small golf tournament has grown into an annual event attracting global investors and thinkers eager to explore the future of digital economies.

 

The Serendipitous Beginnings of the World Venture Forum

Our journey with the World Venture Forum began unexpectedly· A casual chat with Kitzbühel’s mayor about bringing investors together sparked the idea to create a platform for pioneers in digital assets. Over the years, driven by growing interest in cryptocurrencies, especially during the rise of Web3 technologies, the World Venture Forum expanded into a week-long event. It became clear early on that Kitzbühel’s beautiful setting was perfect for discussions on decentralized computing, innovative blockchain applications, and the broader impacts of the Internet of Blockchains.

 

Venionaire Capital’s Strategic Investment Approach

Venionaire Capital’s investment strategy focuses on finding projects with strong business models in the Web3 sector. We manage a specialized Web3 fund, the first registered Alternative Investment Fund Manager (AIFM) in Austria authorized for crypto investments. Unlike traditional approaches based solely on market capitalizations, our strategy emphasizes deep community engagement and thorough due diligence. We seek out companies that not only use blockchain technology but also drive sustainable progress in digital networks.

 

Anticipating the Future of the Cryptocurrency Market

Looking ahead, we expect further development in the cryptocurrency market marked by clear market cycles. After a period of market ups and downs, known as the “Crypto Spring,” we foresee a phase of consolidation and maturity. Regulatory changes, along with the introduction of crypto ETFs, are set to improve market transparency and institutional acceptance. This transformative phase offers opportunities for forward-thinking firms like 21shares, which develop ETFs and contribute creatively to the Web3 ecosystem.

 

The Fluid Nature of Web3 Investments

When evaluating market trends, it is crucial to highlight the fluid nature of Web3 investments. Unlike traditional sectors where timing is critical, the Web3 universe thrives on ongoing innovation and adaptability. The early days of the internet provide a good comparison; while market sentiments may fluctuate, our dedication to understanding and shaping the future of blockchain technology remains steadfast. It’s not just about investments; it’s about nurturing an environment where digital natives and experienced investors can fully leverage the potential of the Internet of Blockchains together·

 

Beyond investments, Venionaire actively participates in M&A advisory to foster strategic growth opportunities for our portfolio companies. In a landscape characterized by dynamic changes and strategic consolidations, we navigate opportunities for organic growth and transformative acquisitions.

 

The original interview has been published in German and can be read here:  https://www.btc-echo.de/news/venionaire-capital-ceo-im-web3-ist-es-egal-wann-man-investiert-187877/

The Startup Rollercoaster: How a new Netflix Series can lead to Explosive Growth!

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In the world of startups and scaleups, every founder dreams of that one breakthrough moment, the unexpected event that sends their sales soaring. Startups usually run growth experiments for performance marketing and position themselves for the breakthrough moment. This can also come by surprise if the market winds start to blow towards the problem they are tackling. Is it luck or is it the fruit of hard work? Either one. It can happen to any startup, at any time and when lightning strikes, you’ve got to be ready to harness that energy and ride the wave. And sometimes a Netflix series called “Hack Your Health: The Secrets of Your Gut” is responsible for explosive growth.  

 

Founder Advice 101: Ready, Set, Scale! 

So, you’ve got a killer idea, a passionate team, and a burning desire to change the world. But here’s the harsh reality: success isn’t just about having a great product. It’s about being ready to scale when the opportunity arises – and that can happen out of the blue. That means you have to build a strong foundation, stay agile, and always be prepared to pivot when the winds of change start blowing. This is crucial for those who want to use their once in a lifetime chance. 

 

A recent example of such a striking incident, increasing sales momentum 20 to 30 fold, happened to our portfolio company Biome Diagnostics, just this week. Let’s take a closer look into it and share some learnings with all founders and investors out there.

 

Unleashing the Microbiome Miracle: BiomeDX’s Netflix Moment 

Picture this: a normal day at the BiomeDX headquarters, when suddenly, the internet explodes with chatter about gut health, all thanks to a Netflix series called “Hack Your Health: The Secrets of Your Gut“. Although the topic of gut health has been scientifically en vogue for years, publications on the subject, books have been written, etc., the topic has only now really reached the general public through Netflix. Infotainment has hit, now everyone wants to optimise their gut health and is looking for the right products and partners online. In a matter of days, the world is buzzing about the microbiome, and BiomeDX finds itself at the epicenter of the craze.  

 

With their flagship product, “myBioma,” poised to revolutionize the way we understand gut health, BiomeDX sees sales skyrocket overnight. Now, imagine this: in the blink of an eye, BiomeDX finds themselves not just doubling or tripling their sales, but multiplying them by a staggering factor of thirty! Yes, you read that right—thirtyfold growth in the blink of an eye! It’s the kind of meteoric rise that most startups dream of, and yet, for BiomeDX, it’s become a reality. But here’s the twist: they were ready. Ready to scale, ready to innovate, and ready to seize the moment when opportunity came knocking. It’s a testament to their foresight, their resilience, and their unwavering commitment to seizing every opportunity that comes their way. 

 

The Takeaway: Be Prepared, Be Proactive, Be BiomeDX 

So, what’s the lesson here for all you aspiring founders out there? It’s simple: always be ready for the unexpected. Success isn’t just about having a great idea—it’s about being prepared to capitalize on opportunities when they arise. Whether it’s a viral Netflix series like Hack your Health or a chance encounter with a potential investor, you’ve got to be ready to pounce and ride that wave of momentum all the way to the top. 

 

So, are you ready to unleash your startup’s potential? The time to act is now. Just remember: when opportunity knocks, don’t just open the door—kick it down and make it yours. And who knows? With a little luck and a lot of hustle, you just might be the next BiomeDX, riding the wave of success all the way to the top! 

 

And if you’re itching to dive deeper into the fascinating world of your gut microbiome, then look no further! Head over to https://mybioma.com/ to get your hands on a test kit and unlock the secrets of your microbiome today. Don’t miss out on the opportunity to take control of your health and embark on a journey of discovery with BiomeDX. Your gut will thank you! 

 

 

Pioneering Women in Computing: Shaping the Future of AI

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Artificial Intelligence is without any doubt a daily companion for many of us —sometimes consciously, sometimes without us even realizing it. As we celebrate International Women’s Day, it’s essential to recognize the remarkable contributions of women who laid the foundation for the technological landscape we inhabit today. The extraordinary women we have chosen for this blog have / have had a significant impact on the evolution of computing technologies. Their groundbreaking work contributed significantly and furthermore set the stage for the development of artificial intelligence. Our blog does not claim to provide a comprehensive list of female scientists in AI for sure. These women are shining examples of women in science who without any doubt have achieved groundbreaking results.

Ada Lovelace (1815-1852): The Visionary Programmer

Ada Lovelace is often hailed as the world’s first computer programmer. She left an indelible mark on the history of computing in a time where gender equality was not even a vision. In the mid-19th century, she foresaw the potential of Charles Babbage’s Analytical Engine to process not only numbers but also symbols. Lovelace’s detailed notes laid the groundwork for the concept of computer programming, a visionary perspective that resonates in the algorithms and codes powering AI systems today.

Grace Hopper (1906-1992): A Naval Pioneer in Programming

Grace Hopper, a pioneering computer scientist and U.S. Navy rear admiral, played a crucial role in the development of early programming languages. Her dedication led to the creation of COBOL (Common Business-Oriented Language), which remains influential in business and administrative systems, contributing to the foundations of modern computing. Hopper’s legacy undeniably endures in the languages that underpin the AI technologies shaping our future.

Dorothy Vaughan (1910-2008): Paving the Way for Modern Computing

Dorothy Vaughan, an African-American mathematician at NASA, made significant contributions to the early days of computing. Her expertise in programming the IBM 7090, an early mainframe computer, laid the groundwork for modern computer programming techniques. Vaughan’s impact obviously transcends time, influencing the programming practices essential for the AI technologies we rely on today.

 

These pioneering women are akin to the great-great-great-grandmothers of AI, laying the groundwork for tools like ChatGPT and the myriad others that have emerged in recent years. As we acknowledge their incredible achievements, it’s especially important to reflect on the challenges they faced in times when gender equality was less than a distant concept. These trailblazers achieved their groundbreaking feats in an era when women’s rights were limited, with issues like the right to vote and domestic violence against women still prevalent and without legal consequences. Despite these challenges, these remarkable women forged ahead. The left an enduring legacy that inspires and empowers women in STEM fields today.

 

Even today, gender bias persists in professional settings, and contemporary female scientists continue to combat stereotypes. We salute all the women who continue to advance science with their work, enabling groundbreaking changes even today. Thus we would like to spotlight three of them here.

Radia Perlman (b. 1951)

Radia Perlman, an American computer scientist, is renowned for her groundbreaking contributions to the field of computer networks. She developed the Spanning Tree Protocol (STP), a crucial mechanism for preventing loops in Ethernet networks. Her work was obviously fundamental to the stability of network topologies and played a significant role in laying the foundation for modern interconnected systems and the Internet. Often referred to as the “Mother of the Internet,” Perlman has had a substantial impact on shaping the structure and architecture of today’s digital age. Learn more about her work here.

Fei-Fei Li (b. 1976)

Fei-Fei Li is a Chinese-American computer scientist and AI researcher. Her research in computer vision, machine learning, and cognitive neuroscience has been instrumental in advancing the capabilities of AI systems, particularly in image recognition. Li has worked on bridging the gap between computer vision and human vision, enabling machines to understand and interpret visual information more effectively. Her contributions have had indeed a profound impact on the development of AI applications in image and pattern recognition. Check out her profile!

Danica Kragic Jensfelt (b. 1971)

Danica Kragic, a Yugoslavia-born Swedish roboticist and computer scientist, has established herself as a leading figure in the realms of robotics and artificial intelligence. She studied mechanical engineering at the University of Rijeka and obtained a Master of Science degree in 1995. Furthermore she holds a PhD in Computer Science from KTH Royal Institute of Technology in Stockholm. Her research has made significant contributions to various facets of robotics, including computer vision, machine learning, and human-robot interaction. Thus Kragic’s research finds practical applications in diverse fields such as manufacturing, healthcare, and autonomous systems. Learn more about Danica!

 

As we celebrate International Women’s Day, let us honor these ladies and all the others who contributed with their work and passion to today’s welfare. Let’s embrace their legacy, fostering an inclusive environment where the brilliance of women in science and technology continues to shine.

As a matter of fact, their stories remind us that progress is possible, even in the face of adversity. The pursuit of knowledge knows no gender boundaries. To rephrase it, the future of AI is brighter because of these extraordinary women. Their influence continues to resonate in the algorithms and innovations shaping our interconnected world.

Why Investing in First Time VC Fund Managers Makes Sense: A Guide by Venionaire Capital AG

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In the dynamic world of venture capital, selecting the right fund manager is crucial for success and thus, returns. At Venionaire Capital AG, we believe that “First Time Managers” offer a valuable and exciting opportunity, particularly in Europe, which is often overlooked. Here are seven reasons why we believe investing in First Time VC Managers is worthwhile:

 

  1. Fresh Approach 

First-Time Managers often bring fresh and innovative perspectives to the table. They are willing to push boundaries and explore new avenues to achieve outstanding returns.

 

  1. Motivation

Being their first fund, First-Time Managers are highly motivated, usually heavily invested themselves (i.e., they have “Skin in the Game”), and often deliver more successful results. They are eager to build a positive track record that advances their career in the industry.

 

  1. Engagement

With fewer portfolio companies, First-Time Managers can invest more time and attention into each one. This engagement can lead to better decisions and ultimately, better returns.

 

  1. Access to New Markets

First-Time Managers are often willing to focus on emerging markets or sectors, while more established fund managers may need to stick closer to their standing strategies. This access to new opportunities, seizing new market chances, can diversify your portfolio and increase your returns.

 

  1. Flexibility

Without the burden of a long history or a set corporate culture, First-Time Managers can be more flexible in their approach. They can respond quicker to market changes and often act much more entrepreneurial or even unconventional.

 

  1. Potentially Higher Returns

Since First-Time Managers are managed more directly by the founding partners, risks can be better controlled compared to employees of an established manager (potentially with less experience). The potential to achieve higher returns is statistically proven. Of course, managers and a solid strategy must be carefully selected.

 

  1. Building Relationships

As one of the first investors in a fund, you can build a strong relationship with the management team. These relationships can prove invaluable over time. Both in terms of access to information and the ability to influence future investments.

 

Furthermore, at Venionaire Capital AG, we believe that combining investments in First-Time Managers with direct angel investments can be a strong strategy. This way, you can diversify your portfolio and leverage potential synergies between companies in your portfolio. Additionally, you can learn from the experiences and knowledge of fund managers.

 

As a matter of fact, we invest via the syndicate fund of the European Super Angels Club (ESAC), an initiative by KPMG Austria Partners and Venionaire Capital. With the combined financial strength and know-how we pool risk and gain access to young European top companies.

 

Whether you are an experienced investor or just entering the world of venture capital, we at Venionaire Capital AG are here to support you. We believe that First-Time Managers represent an exciting investment opportunity, and we look forward to helping you make the most of this opportunity.

 

In the world of venture capital, there is no one-size-fits-all approach. But we believe that First-Time Managers are worth serious consideration. Contact us today to learn how we can help you optimize your VC investment strategy.

Through Thick and Thin: The partnership with Business Angels

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How Business Angels select their projects, how cooperation with them works, and what founders should consider before dealing with a Business Angel. Berthold Baurek-Karlic, Austria’s Business Angel of the Year 2023, shares his insider knowledge.

 

Many startups have fantastic ideas. However, often they lack the necessary funds to bring these ideas to life. This is where investors and Business Angels like Berthold Baurek-Karlic come into play. Business Angels, however, don’t just act as financiers; they support companies right from the start with crucial industry insights and networks and serve as sparring partners. Frequently, they have been startup founders themselves, wanting to pass on their expertise to other young entrepreneurs and advance a specific subject. The expert explains what matters in this “temporary marriage,” how the collaboration between companies and Business Angels operates, and what businesses should consider before striking a deal with Business Angels.

 

  1. Is “bootstrapping” enough or does it require an investor?

Before seeking an investor or Business Angel, the expert advises companies to consider whether external financing is genuinely needed for a project. Often, “bootstrapping” – financing from one’s own resources – makes sense, which can ultimately be significantly more lucrative for companies.

 

  1. Connect with Business Angels early on

The advice from Baurek-Karlic is to get in touch with potential Business Angels sooner rather than later. The earlier Business Angels come on board, the sooner they can support with their knowledge and network. It’s also crucial to navigate the world of Business Angels as early as possible to find the right one.

 

  1. Good idea is one thing, teamwork another

Besides having a good idea, before a deal with Business Angels, the company needs standard documents and data on financials, legal regulations, a business plan, etc. This allows Business Angels to gain an outside perspective on the company and its scalability. Essential for striking a deal are also soft factors such as the startup’s team dynamics and the personal traits of its members. Business Angels aim to determine whether collaboration with potential partners can work, how dedicated and open the team is to advice, and the resilience of future business partners.

 

  1. Steer the course together

Collaboration with a Business Angel usually lasts between three and five years. Just like any business, during this time, there are highs and lows. This is where Business Angels can offer support, helping companies maintain direction during challenging times, not getting too carried away in peak phases, providing backing when things aren’t going smoothly, and advising on sensitive professional matters.

 

  1. Perform a background check

Similar to how Business Angels check the business plans and financial data of companies before forming a connection, companies should also conduct a background check on potential Business Angels. Does the Business Angel and their network even fit with my company? What references are available? Can I contact a company that has already worked with the respective Business Angel? Ensuring that a Business Angel aligns with a company and that the collaboration will last for an extended period is crucial. A premature “exit” or withdrawal of the Business Angel often creates distrust among future investors and Business Angels.

 

The original interview was published in the Austrian Broadsheet “Wiener Wirtschaft – Die Zeitung der Wirtschafskammer Wien” on December 7, 2023.

 

MARKET PULSE #4 – Navigating Sustainable Business Frontiers: Outlook on the Horasis India Meeting 2023

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Scheduled for November 26-27 in Adelaide, Australia, the Horasis India Meeting 2023 is set to converge an array of distinguished business leaders from across the globe. This highly anticipated assembly, a collaborative effort between Horasis, the Government of South Australia, and the Confederation of Indian Industry (CII), aims to foster impactful discussions on cooperation, impact investing, and strategies for sustainable growth. 

Pioneering Circular Economy: A Centerpiece of Discussions 

Among the prominent figures attending is Berthold Baurek-Karlic, the CEO of Venionaire Capital AG. Baurek-Karlic is set to contribute significantly to a central panel discussion focusing on “Designing for Life-Time Circularity.” This critical discourse, centered on circular economy principles, underscores the crucial role of sustainable practices in shaping the contemporary global business landscape. 

Expressing his anticipation, Baurek-Karlic remarked, “The 2023 Horasis India Meeting serves as a pivotal platform for global leaders to steer conversations towards tangible, impactful solutions. Our emphasis on circular economy strategies strongly aligns with the conference’s agenda, presenting a compelling avenue to address pressing global challenges.” 

Charting a Sustainable Future 

The event presents an exclusive opportunity for innovators and entrepreneurs to establish synergistic partnerships and explore new ventures. Leveraging Adelaide as a strategic hub, participants aim to drive investments not only in Australia but also across the expansive Asia-Pacific region. 

Baurek-Karlic emphasized, “It’s a privilege to contribute to the discourse on designing a circular economy. Venionaire, being a crucial part of the InvestCEC project, remains steadfast in spearheading initiatives that echo the values of sustainability and innovation.” Furthermore, Baurek-Karlic will take the opportunity to invite the participants to attend the Word Venture Forum 2024, where there will be a thematic focus on impact and sustainability. The EU’s Directive SFRD also applies to companies or individuals from third countries operating within the EU. It is therefore crucial to have these topics presented internationally. 

 

In conclusion, the 2023 Horasis India Meeting emerges as a catalytic force, nurturing collaborations and discussions that transcend borders, steering the world towards a more sustainable and interconnected global economy. Venionaire takes Venionaire is very proud to send their CEO to this event as a panelist, thus making an active contribution in the conference’s success. 

MARKET PULSE #3 – Content Strategy Guide

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Having a strong online presence is paramount for the success of any startup. In today’s digital age, where consumers turn to the internet for information, entertainment, and solutions, startups must harness the power of the online world to thrive. One of the most effective ways to achieve this is through a well-planned and SEO optimized content strategy. In this comprehensive guide, we will delve into the importance of SEO optimized content and also provide valuable insights to help startups create a smart content strategy that drives visibility, engagement, and growth.

 

We also have a video on our YouTube Channel, in which Amanda Intelli, AI Video Assistant at Venionaire Capital, is diving into the optimal content strategy for startups:

 

1. Understand the Power of SEO:

Search Engine Optimization (SEO) is the holy grail of online visibility. Therefore, by optimizing your website and content for search engines, you increase the likelihood of appearing in top search results. Startups must grasp the significance of SEO and its potential to drive organic traffic to their websites. For this reason, these key facts need to be considered: 

  • According to a study by BrightEdge, organic search drives 53% of all website traffic. This further highlights the critical role of SEO in attracting visitors. 
  • SEO leads have a 14.6% close rate, compared to outbound leads like direct mail or print advertising, which have a 1.7% close rate (Source: HubSpot). This underlines the quality and relevance of traffic that SEO can bring to your startup. 
  • Google processes over 5.6 billion searches per day (Source: Internet Live Stats). This sheer volume of search queries emphasizes the vast potential audience that startups can tap into with SEO optimization.

2. Identify Your Target Audience:

Before diving into content creation, it’s crucial to identify your target audience. Understanding their needs, preferences, and pain points will significantly help you tailor your content to meet their expectations. Here’s why this step is essential: 

  • Research conducted by Neil Patel shows that 47% of consumers view 3-5 pieces of content created by a company before talking to a sales representative. This emphasizes the role of content in nurturing leads and guiding them through the buyer’s journey. 
  • Personalization is key. In fact, according to a report by SmarterHQ, 72% of consumers say they only engage with personalized messaging. Knowing your audience intimately allows you to craft content that resonates on a personal level.

3. Create Valuable and Engaging Content:

To stand out in the crowded digital landscape, startups must provide content that adds value to their audience’s lives. Whether it’s educational blog posts, informative videos, or engaging social media content, focus on delivering high-quality, relevant, and engaging information that addresses your audience’s pain points and solves their problems. Additionally, here are some statistics to reinforce the importance of value-driven content: 

  • Content marketing generates three times as many leads as traditional outbound marketing, but it costs 62% less (Source: DemandMetric). This cost-effectiveness makes content marketing an attractive option for startups with limited budgets. 
  • According to a study by the Content Marketing Institute, 61% of consumers are more likely to buy from companies that provide custom content. This highlights the direct correlation between content personalization and consumer trust.

4. Optimize On-Page Elements:

While writing compelling content is essential, optimizing on-page elements plays a pivotal role in SEO success. Pay attention to meta titles, meta descriptions, headings, and URLs, ensuring they are keyword-rich and concise. Additionally, incorporate internal and external links to strengthen your content’s credibility and relevance. Consider these insights: 

  • Pages with meta descriptions receive 5.8% more clicks than those without (Source: backlinko). Crafting compelling meta descriptions is crucial for attracting clicks from search engine results pages (SERPs). 
  • Internal linking can significantly impact your website’s SEO. According to Backlinko, pages with more internal links tend to rank higher on Google. This emphasizes the importance of an effective internal linking strategy.

5. Embrace Different Content Formats:

Diversify your content formats to cater to different audience preferences. Furthermore, explore blog posts, videos, podcasts, infographics, and social media content to engage with your audience through different mediums. This will not only enhance user experience but also increase your reach and brand visibility. Here’s why content format diversity matters: 

  • Over 3.37 billion internet users consumed video content in 2022, with a projected increase to nearly 3.5 billion by 2023, highlighting the popularity of video marketing. 
  • Video marketing accounted for 82% of global internet traffic in 2022. This certainly underlines the dominance of video as a medium and its importance in reaching a vast online audience. 
  • Infographics are liked and shared on social media three times more than other types of content (Source: zipdo). This underscores the shareability and engagement potential of visual content.

6. Consistency and Frequency:

Consistency is key when it comes to content creation. Therefore, develop a content calendar and stick to a regular posting schedule. As a result, this will help build brand trust, maintain audience engagement, and improve your search engine rankings. Remember, quality content matters, but so does consistent delivery. Consider these facts: 

  • Companies that publish 16 or more blog posts per month get 3.5 times more traffic than those that publish 0-4 monthly posts (Source: HubSpot). This demonstrates the direct correlation between content volume and website traffic. 
  • Social media algorithms favor consistent posting. Platforms like Facebook reward businesses that post regularly by showing their content to a wider audience.

7. Leverage Keyword Research:

Keyword research is the backbone of any successful content strategy. Identify relevant keywords and phrases related to your startup’s niche and incorporate them strategically into your content. This will not only boost your search engine rankings but also attract a highly targeted audience. Consider the following facts: 

  • Long-tail keywords (phrases with three or more words) account for 70% of all web searches (Source: Moz). Hence, targeting long-tail keywords can help startups capture specific and motivated audiences. 
  • Voice search is on the rise, with predictions indicating that by 2024, there will be 8.4 billion voice-enabled digital assistants, and the global voice recognition market will be worth $26.8 billion. This trend has prompted businesses to optimize their websites for voice search and adapt their marketing strategies to changing consumer behaviour. (Source: demandsage)

 8. Promote Your Content:

Creating exceptional content is just the first step; promoting it is equally important. Leverage social media platforms, influencer collaborations, email marketing, and guest blogging to amplify your content’s reach. Engage with your audience, encourage social sharing, and actively participate in relevant online communities. Here’s why content promotion is crucial: 

  • Content promotion can result in a 200% increase in leads (Source: Adobe). This statistic highlights the lead generation potential of effective content distribution. 
  • Collaborating with influencers can be highly effective. Data from influencer marketing platform MuseFind shows that 92% of consumers trust an influencer more than an advertisement or traditional celebrity endorsement

How to start? 

Crafting a smart content strategy rooted in SEO optimization is a crucial growth driver for startups. By understanding the power of SEO, identifying your target audience, and creating valuable content consistently, startups can establish a strong online presence, attract a highly targeted audience, and ultimately drive business growth. Our “Venionaire Growth Punk” experts are happy to help you develop such content strategies, adapt them to your unique startup, and watch as your brand flourishes in the digital realm. 

 

Remember, content is king, and a well-executed content strategy can be the key to unlocking success for your startup! 

 

  1. SEO Power

SEO boosts online visibility. 

It drives 53% of website traffic. 

SEO leads convert at 14.6%. 

Google handles 5.6 billion daily searches. 

 

  1. Target Audience

Understand your audience’s needs. 

47% view 3-5 pieces of content before purchase. 

Personalization is essential (72% engagement). 

 

  1. Valuable Content

Content marketing creates more leads (3x) for less cost (62%). 

Custom content builds trust (61% more likely to buy). 

 

  1. Keyword Research

Long-tail keywords are 70% of web searches. 

Voice search is growing (8.4 billion by 2024). 

 

  1. On-Page Optimization

Meta descriptions boost clicks by 5.8%. 

Internal links improve SEO rankings. 

 

  1. Content Formats

Video consumption is rising (3.5 billion users). 

Video accounts for 82% of internet traffic. 

Infographics are highly shareable. 

 

  1. Consistency

16+ blog posts/month bring 3.5x more traffic. 

Consistent social media posting expands reach. 

 

  1. Content Promotion

Content promotion leads to a 200% lead increase. 

Collaborating with influencers builds trust (92%). 

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