Success in entrepreneurship can be elusive. European startups, in particular, have fallen behind startup hubs across the pond like Silicon Valley or in various Asian cities like Tokyo and Seoul. However, the scales are starting to shift as European startup founders are beginning to drive up investments and support. Starting in 2019, European startups have earned over Beyond gaining financial investment capital, it will take resiliency, adaptability, and awareness on the part of the founder/s, who must also implement cost-effective ways to grow their startup.
Astrid Woollard, Oliver Csendes, Frank Floessel, Thomas Kolbabek and Johann Steszgal join the company as new associate partners.
News of an investment deal is a reason for the entire ecosystem to celebrate. In this article, we listed top investment deals and valuations.
Startup Investment During the Pandemic
Updated: March 15, 2021
The ongoing COVID-19 crisis has been a shock for our economy. Startups have been hit particularly hard by market turbulences and ongoing governmental restrictions. In many countries, government rescue schemes and packages have completely ignored startups.
But enough with the bad news. Contrary to what you might expect, the pandemic has not defeated dealflow! According to Atomico’s highly respected State of European Tech report for 2020, published in December, venture capital has continued to pour into the region.
- Seed rounds are growing in size with an increased number of $100m+ deals, and the continent was on track for another record year of investment at over $41bn.
- In March 2021, Hopin (which has seen huge demand for its software during the COVID-19 pandemic) has officially become the fastest-growing European startup ever, in terms of the time it has taken to reach a $5bn valuation.
The investment picture also looks good in North America, despite a politically, socially and economically turbulent year in the United States.
In every crisis lies opportunity – just ask Zoom! – and investors know this very well.
So there’s still every reason to be positive as a startup founder. But just because there’s money out there doesn’t mean raising funds just got easy!
How to approach investors in a time of crisis
Although the broader investment landscape remains better than many had hoped, it’s nonetheless true that investors are being more cautious than usual.
Some investors – business angels in particular – are focused on keeping their existing commitments afloat. All they’re doing is looking after their portfolio companies. And many venture funds have reacted the same way.
But as we’ve seen, plenty are still open for business. One thing to be aware of is that some of them might look for ‘bargain deals’ during the crisis.
It’s important to stay calm in all your decision-making. Even if you desperately need funding, don’t just contact hundreds of funds. Remain rational. Make sure you target proper introductions to the investors who make the most sense for your business. Read investment criteria carefully before you reach out to investors.
Pitching online is also quite different from pitching in person – we recommend watching this free tutorial video to improve your skills.
EXTEND YOUR RUNWAY
Also, remember that this is not the time to be overly aggressive. This is a serious crisis and you should hit the brakes if you face uncertainty. Cut your burn rate, extend your runway. Down-rounds might be inevitable and the mid-/long-term reality of this crisis could be a long fundraising winter. Keep an eye on the valuation impact of your decision, with tools like DealMatrix.
Come up with a survival strategy and be ready to explain it to investors – as well as answer their challenge. VentureBeat covered the big questions you need to ask yourself in this article written at the very start of the crisis – the advice in it still holds.
We highly recommend applying to the European Super Angels Club – Europe’s leading investors’ network – if your company is within the investment scope of the club. Venionaire Capital’s analyst and transaction team support the club with startup selection – in partnership with KPMG Austria. Members range from family firms and high-net-worth private individuals to corporate venture capital funds. The network includes thousands of potential investors who are open to investing during the pandemic.
If you need any assistance – don’t hesitate to reach out to us. We support startups in fundraising on a daily basis. Who knows, maybe we have a fit and we can leverage your efforts to raise a successful round.
About the author: Berthold Baurek-Karlic is the Founder and CEO of Venionaire Capital, with many years of experience as a serial entrepreneur, corporate finance expert, and early-stage investor. He supports the startup ecosystem in various roles such as President of the European Super Angels Club, Board of Austrian Private Equity and Venture Capital Association, and General Secretary of Business Angel Institute.
In light of the vast economic changes in the European venture capital market as a result of the COVID-19, we started to monitor the venture sentiment more closely and highlight important findings in an aggregate index on the European level. In today’s article we take a closer look at CEE.
How is the startup community and investors doing in the midst of the Covid-19 crisis? It’s been a rather stormy ride for many over the last half-a-year and it’s far from calming down. Read on for Berthold Baurek-Karlic’s opinion, CEO of Venionare Capital, from an investor’s perspective.
Private equity (PE) funds, the larger cousins of venture capital funds, typically invest in more mature companies. In this article, we will look into the past, present and future of private equity strategies. The evolution of private equity is driven by accidentally discovered effects that our team of experts and analysts identified recently.
Our M&A team led a lighthouse M&A transaction for Blockpit, the Austrian expert for legally compliant reporting for digital asset trading to acquire its German competitor CryptoTax. With this acquisition of its biggest and larger European competitor, the company intends to drive international expansion into the US and other markets globally in 2021.
We are proud to have closed the following deals during the last weeks: Health-Tech pioneer myBioma has secured a six-figure investment from renowned investors, which was also doubled by the COVID-19 relief fund of the Austrian Promotional Bank (Die Austria Wirtschaftsservice Gesellschaft mbH – AWS) and also the award-winning RegTech platform for Business KYC (KYB), kompany has secured a follow-up funding of €6 million, which was their largest single investment round to date.