How a potential Trade War impacts European Venture Capital Markets

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A Temporary Truce, but Uncertainty Remains 

Recent geopolitical developments have put the global economy on edge. President Donald Trump has agreed to pause the imposition of 25% tariffs on Canada and Mexico for 30 days, temporarily averting an economic showdown with its North American neighbors. Canada, in turn, has committed to reinforcing its border to curb migration and fentanyl trafficking, while Mexico has deployed troops to its northern border in exchange for the US limiting the flow of guns into Mexico. However, tensions remain high, as a 10% tariff on Chinese imports has taken effect, leading Beijing to retaliate with its own set of tariffs, including 15% on coal and liquefied natural gas and 10% on crude oil and agricultural machinery. 

While these developments primarily impact North America and China, they hold significant implications for Europe—particularly for European venture capital (VC) markets. If a trade war emerges, it could lead to investment shifts, supply chain realignments, and increased volatility, all of which could reshape how capital flows into European startups. 

How a Trade War Could Affect European VC Markets 

  1. Increased Investment Diversion to Europe

With escalating trade tensions between the US and its key partners, global investors may look to Europe as a more stable alternative. The European market’s relatively consistent trade policies could make it a preferred destination for capital that might otherwise have been allocated to North America or China.

  • European startups, particularly in technology, manufacturing, and consumer goods, could attract more funding as investors seek alternatives to US-China supply chains.
  • VC firms looking to hedge against North American volatility may shift their focus to promising European innovations.

  1. Supply Chain Realignment Could Benefit European Startups

Tariffs on North American and Chinese trade could push companies to reconfigure their supply chains, which would open new opportunities for European startups in logistics, automation, and alternative supply solutions.

  • Startups specializing in AI-driven logistics, nearshoring solutions, and supply chain automation may see increased demand.
  • Europe-based manufacturers and fintech firms facilitating alternative trade routes may benefit from the restructuring of global supply chains.

  1. More Expensive US Imports Could Favor European Competitors

Higher tariffs on US goods would increase costs for American exports, making European companies more competitive in global markets. This could create growth opportunities for European startups that compete with US firms in regions like Asia and Latin America.

  • European tech and consumer startups may gain market share as price-sensitive buyers opt for non-US alternatives.
  • Sectors such as renewable energy, automotive, and digital commerce could experience a surge in demand as US competitors struggle with tariff-driven price increases.

  1. Market Volatility and Risk Aversion

A worsening trade war could have destabilizing effects on the global economy. A 1.2% projected GDP hit in the UScould lead to investor caution, affecting capital flow into high-risk European startups.

  • Early-stage startups in high-risk sectors like deep tech and biotech could find it harder to raise funds.
  • However, risk-averse investors may prioritize resilient sectors such as AI, cybersecurity, and renewable energy, where Europe has strong market positioning.

  1. A Stronger Euro and New Trade Agreements

If trade tensions weaken the US dollar, the Euro could strengthen, boosting purchasing power for European startups. Additionally, new trade agreements within Europe could enhance market access and investor confidence.

  • European startups may find it easier to import resources and expand into regions previously dominated by US companies.
  • Trade realignments could redirect VC investment to sectors benefiting from Europe’s more stable trading environment.

The Bottom Line: A Mixed But Potentially Positive Outlook for European VC 

While a full-scale trade war remains uncertain, its effects on European venture capital markets could be a double-edged sword. On one hand, increased investment inflows, supply chain realignment, and European competitiveness could create a boom for startups and VC firms. On the other, market volatility and cautious investor sentiment could pose challenges, especially for high-risk sectors.

Ultimately, Europe has the potential to emerge as a relative winner, attracting capital from investors seeking stability and opportunities beyond US-China tensions. However, flexibility, adaptability, and strategic planningwill be key for VC firms navigating this evolving landscape.

Deepseek’s AI Revolution: The End of Big Tech’s Monopoly?

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Disrupting the Tech-Giants Industry Dominance

On January 20, 2025, the Chinese AI startup DeepSeek shook the industry by launching its R1 Large Language Model. In a bold move, the company built the model in just two months using Nvidia’s less powerful H800 chips—at a fraction of the cost, under USD 6 million. DeepSeek R1 surged past OpenAI’s ChatGPT mobile app within days, claiming the top spot on the App Store charts. The unexpected breakthrough sent shockwaves through the stock market, triggering a sell-off. By January 27, investors were questioning the valuations of major U.S. tech players like Nvidia, Microsoft, Meta, and Oracle.

So, what does this mean for AI’s future? It signals that cutting-edge AI is no longer limited to a few tech giants. DeepSeek’s success proves that AI development does not require billions in funding or a monopoly on proprietary models. The real power of AI is in what we can achieve using it, rather than in exclusive proprietary models.

Effects on other industries

DeepSeek’s breakthrough has generally shattered the long-held belief that the AI industry requires vast amounts of electricity. As a result, the demand for energy-intensive infrastructure is no longer as urgent. This shift is having a ripple effect beyond technology, with nuclear energy leaders like Vistra and Constellation seeing their stock prices fall as investors question the future role of nuclear power. Additionally, industries that rely on large-scale technological production, such as logistics and semiconductor manufacturing, could face major disruptions. This shift could open the door for more regional, smaller-scale manufacturing models that put sustainability and adaptability first, with efficiency replacing sheer volume.

Training programs and educational institutions could also feel the impact as AI tools become more accessible and adaptable. Rather than focusing on expensive infrastructure, the emphasis will shift toward practical AI skills, opening the industry to a broader range of people and accelerating its growth.

Financial markets and investments are already feeling the shift, as traditional bets on energy-intensive AI infrastructure give way to opportunities in more resource-efficient models. Venture capital may also take a new direction, favouring startups that prioritize transparency and efficiency over sheer processing power.

A New AI Landscape

The rise of DeepSeek has likely caught the attention of AI startups that have raised billions at sky-high valuations. OpenAI, which secured USD 6.6 billion last October at a USD 157 billion valuation, and xAI, which raised USD 6 billion in November at a USD 50 billion valuation, are now watching closely. Other major players, including Mistral AI and Anthropic—reportedly receiving another USD 1 billion from Google—may have to reassess their fundraising strategies. As DeepSeek challenges assumptions about AI costs, the competition between China and the U.S. will likely intensify, making profitability a growing concern for many startups.

DeepSeek’s breakthrough comes just as the White House launches its AI Stargate Project, aimed at building up to USD 500 billion in AI infrastructure with the help of OpenAI, SoftBank, and Oracle. However, if DeepSeek’s approach proves successful, it could disrupt these plans and shift industry expectations.

Will DeepSeek Pop the AI Investment Bubble?

Answering the most concerning question among the VC investors, it is still unclear if DeepSeek has truly built a cheaper and better AI model or how concerns over data security will unfold. However, its sudden rise is shaking up the industry, raising questions about the future of AI investments and whether the old rules still apply.

The Road Ahead: A Turning Point for AI

Summarising, DeepSeek’s rise is more than just another breakthrough—it is a wake-up call for the entire AI industry, and not limited to AI only.. With its disruptive approach, it has challenged the long-standing dominance of tech giants, rewritten the rules of AI development, and forced investors to rethink their strategies, especially with the competition between the U.S. and China heating up in the background.

Yet, whether DeepSeek is a one-time anomaly or the beginning of a larger shift remains to be seen. However, one thing is certain: the AI landscape will never be the same.

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.

 

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Venionaire Capital exclusively invests through the European Super Angels Club, for more information and application please go to the website. We do not accept direct investment proposals via this website.