Fundraising Playbook

Raising capital is always difficult – on average Startups get rejected over 100 times before they close a sufficient seed-round (to be clear: Investors not FFF). It’s obvious that this process wastes a lot of times for founders, as they should be working on their products, services, technologies, and clients.

Having raised money for a lot of startups and SMEs in different stages over the last years, we have discovered a pattern which will make you successful in fundraising.

 

Our playbook in 7 steps

 

1.) Build relations

Build relations in times you are not running for an investment. Investors / Fund-Managers like to get to know founders and follow their progress early. This helps them to understand your business better and it will build trust in your management capabilities.

2.) Set a Schedule

Set yourself a timeframe (e.g. 2 weeks for Research, 3 weeks for approaching, 4 weeks for first-round calls and 2 months moving forward) and be realistic about it. Fundraising takes about 3 to 6 months. Set your self a strategy for your fundraising and stick to it. Investors will understand that you do not want to waste time – therefore it’s ok to communicate a timeframe and be transparent about it.

3.) Be prepared.

Make sure you have a good FAQ for all your fundraising partners prepared and all relevant documents – legal, financial, KPIs, technology, roadmaps, strategy papers, research, etc. – arranged in a data room, ready to be shared.

Professional investors need to be efficient as well, so make their lives as easy as possible and show them that you are prepared to raise funds now.

4.) Manage your process.

You will need to manage involved team-members, Business Angels and consultants – and maybe press (if you run transaction PR to increase visibility). Therefore you should use a professional software tool to manage your fundraising funnel, tasks, documents, reports, including a growing investors database – all in one place – like foundersuite.com.

 

5.) A good storyline

Make sure you have a good storyline for your campaign. Investors like traction, momentum, numbers (does not always have to be revenue) and it is important to support your fundraising campaign with a strong story which gets repeatedly updated during the process. Launch successful press releases of achieved milestones, partnerships or new alliances you have been able to close.
Drip this information – piece by piece – and communicate with your audience.

6.) Be realistic about your valuation

Some startups slam doors by calling for ridiculous valuations – this is simply stupid. You should know in which area your company should be valued, but it is always to signal that you are open for negotiations. Valuations and terms play together like a swiss-clockwork and you will have to find a good balance between them.

7.) Ask for more

Make sure you ask for more than money. It’s important to understand that early-stage Investing is not like calling a bank loan. The right investor will bring your company up to speed and be worth a fortune. His reputation can even be the underlying asset, which opens doors for next rounds and exits. Ask investors, why you should work with them instead of their competitors. All the best for your fundraising!

Finally, if you need advice or simply additional (professional) resources for fundraising – we are always happy to look at your deal and see if we can be of value for your venture.

 

Next Level Leadership

Last week, I traveled to San Francisco and Berkeley, California to join the exclusive professional classes of Innovation Orbit for the latest on leadership, innovation techniques, and how to change corporate culture.  Innovation Orbit is a global executive training program focusing on innovation strategies, culture and tools used by leading corporates, public entities and startups. The classes rotate between Vienna, Austria, Shanghai, China and San Francisco, California.  Next year, Nairobi, Kenya will be added.

Like leading MBA programs, the secret sauce in this program are the hand-picked, multi-cultural leading professionals with diverse backgrounds. The discussions and presentations covered the challenging topic about changing a ‘non-innovative’ corporate culture from the ground up.   The speakers reminded us of one very famous quote by Peter Drucker: “Culture eats strategy for breakfast.” This means that defining the right KPIs and training your managers is not enough.  Organizational leaders need to create a mindset and environment for change and motivates all stakeholders.

As important is identifying those who will never change.  This is probably one of the hardest things to do.  After last week, I am happy to share with you some simple “rules & tools” to make this happen.

 

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Change starts with me

If you are willing to change as a manager you have a chance to change your corporate system. Like a human body you will naturally face anti-bodies within your organizational system which are simply not ready to adopt change right from the beginning (expect this group to be something like 20% of our colleagues) and a large group of around 60% who will see what’s coming up “new” – being indifferent – and the rest will be ready to adopt and drive change with you. Follow this last group and forget about those, who are not willing to see the future of a better, more creative and inspiring working environment.

 

People support what they create

One of the most important drivers of corporate culture is the commitment and drive of all managers, across hierarchies, within your organization. Peter Drucker once said “Culture eats strategy for Breakfast” and this the Damocles Sword everybody in Silicon Valley will remind you over and over again. You need to reduce the negative factor of managing people from distance by involving them directly. Managers need to see the future and be the natural creators of change that happens within your organization. Experienced Managers suggested the concept of GEMBA walks in order to make managers start to understand an organization from the ground up again, instead of falling into the so-called “Melon Trap”.

 

Change happens in the here and now

If you are willing to change – don’t wait. It is never the right moment and it will never be better. Your personal work-life-balance is bullshit, if you realize and be honest with you that work will always eat up a little more of your time than family because this is what you live off – BUT you can make a difference concentrating on tasks and projects which give you energy instead of fighting against windmills that eventually drive you into burnout.

 

Cultural Change is not esoteric

I believe everything you do only make sense if you measure your performance. This is the most simple tool you may use for reflection and you need to take into account that measurement always come with a human misbehavior or misperception (not important if this happens on purpose due to biased reporting – or not). 4 KPIs should help you to consciously drive change in your system and make a true difference.

  • OHI (Organisational Health Index) by McKinsey
  • ESAT (Employee Satisfaction)
  • CSAT (Customer Satisfaction)
  • CASHFLOW improvement

 

5 things you should train your management

Whatever you do needs to be driven and created by the management itself, therefore you need to make sure they are the right role models and that they live values rather than only talking about a mission. Train your managers constantly in 5 different fields and make them true leaders and drivers of your next level leadership team.

  • Nutrition
  • Mindfulness
  • Constellation (like Family Constellations / Aufstellungen)
  • Design Thinking
  • Rapid Prototyping

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Interested in learning more about leadership, next level innovation and the future of corporate organizational design? Contact us and see what you can learn from the fastest companies in the world out of Silicon Valley and China.

Startups meet Lederhosen – Bits & Pretzels 2017

© Featured Picture: Andreas Gebert

 

At this time of the year (September) Munich is full of people from around the globe where Lederhosen or Dirndls – it is the time of the traditional Oktoberfest. A festival rather known for beer, Volksmusik, celebrities, and traditional Bavarian food – but there is also the largest and one of the most impressive Startup Events happening alongside this event “Bits & Pretzels”. The founders, three successful entrepreneurs from Munich, claim they want to host the coolest Startup Festival in Europe and they do.

Where else do you find so many international top speakers, but a limited number of guests (around 3.000) in a loose atmosphere inspired by a Volksfest like Oktoberfest – this is hard to beat. We simply love the concept and proud partners for this event.

Bits & Pretzels still was a little bit of an insider tip to the Austrian Startup Ecosystem – but this radically changed. We have seen a large delegation of fellow Austrian Investors and Entrepreneurs at Bits & Pretzels. It was amazing to see that our ecosystem organized themselves very fast through WhatsApp – sharing impressions, tips where the cool things are happening or simply gathering everyone together for a small “after work” beer. We have met great people and hope everyone is coming back next year.

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The highlight of this year’s conference besides a great lineup of Corporate Venture Capital Players (among them Raiffeisen Bank Internationals – Elevator Lab) was definitely the announcement of Kevin Spacey (Opening Keynote Speaker 2016) as new Partner of the event. He will open his network and secure more international speakers out of his personal network and I am sure 2018 will move the level up a notch again. Kevin Spacey was all over the event, engaged with startups and took selfies with a lot of fans – much more open and easy going like someone would expect.

Our Partner Alexander Rapatz with Kevin Spacey at the Speakers Dinner.

Our Partner Alexander Rapatz with Kevin Spacey at the Speakers Dinner.

This year, opening Keynote was held by German Godfather of Soft-Comedy and Self-made multi-millionaire – Stefan Raab. He was funny, yes – he is a star, yes – but IMHO he did not rock the stage. I did miss him at the rest of the event. Famous soccer stars like Philipp Lahm (World Champion & Business Angel) and Oliver Kahn where all over the place and open to speak to random visitors. I was more impressed by those who spoke excellent on stage and stayed for the rest of the show … this is what such a festival is about. Be open and network – built relations and get inspired!

Startups did also profit from this years event – Dealmatrix (one of our Portfolio Companies) was a partner of the conference and busy for two days at their booth. “Something changed – everybody this year realized that they need a smart tool to manage deal flow and improve scouting capabilities. We signed more than 60 new clients at the conference and we will follow up with more than 100 contacts”, explains Christoph Drescher (Founder of Dealmatrix).

Christoph Drescher, der Founder & CEO von DealMatrix, im Live Gespräch über seine Innovation Scouting und Dealflow Management Platform, die bei Bits & Pretzels voll im Einsatz ist.

Gepostet von DerBrutkasten am Montag, 25. September 2017

 

And our European Super Angels Club – selected the smart butler “myAlfred” (currently in NEXTAmsterdams Accelerator) out of all 70 Bits & Pretzels finalists. Read more here.

Find out more about the European Super Angels Club and how your startup could profit. 

Karrieremeldung: Ex-Raiffeisen-Manager Solonar unterstützt Fonds von Heinrich Prokop

Der aus der Puls4-Show „2 Minuten 2 Millionen“ bekannte Startup-Investor Heinrich Prokop hat den Finanzexperten Raimund Solonar für seinen Fonds Clever Clover gewonnen. Solonar unterstützt als Senior Advisor die finanziellen Belange der Portfolio-Unternehmen und wird zudem bei Exitverhandlungen sein Know-how einbringen.

„Raimund Solonar ist ein erfahrener Fonds-Manager der 40 Jahre Wissen in der Finanzwelt mitbringt. Sein internationales Netzwerk wird uns entscheidend beim Fundraising des zweiten Fonds unterstützen, mit dem wir qualifizierten Investoren die Möglichkeit geben, in zukunftsträchtige Unternehmen aus Handel und Fast Moving Consumer Goods zu investieren“, sagt Prokop.

Bankenmanager und politische Karriere
Solonar war zuletzt als Geschäftsführer der CARY Austria GmbH tätig, wo er unter anderem Kunden bei der Strukturierung und Verwaltung von Fonds beriet. Davor war der Wiener als Vorstandsvorsitzender der Raiffeisen Centropa Invest AG tätig, dessen 100 Millionen Euro Centropa Regional Fund in zentraleuropäische Unternehmen sowie in Staats- und Unternehmensanleihen investierte.

Der Top-Manager begann seine Karriere im Wertpapierbereich der Girozentrale, von wo er nach kurzer Tätigkeit bei der Chase Manhattan in New York nach London ging und dort den Wertpapierhandel der Girozentrale aufbaute. Danach betraute ihn die Bank mit dem Aufbau und der Leitung der Girozentrale New York. 1990 wurde er Generalsekretär der ÖVP. Nach seiner politischen Karriere leitete er das gesamte Kreditgeschäft der Girozentrale. Es folgte die Berufung als Vorstandsvorsitzender der M&A Bank und der Aufbau des Auslandsgeschäftes der ÖVAG.

Über Clever Clover
Clever Clover ist eine Venture Capital Firma in Amsterdam und Wien. Das Unternehmen fokussiert auf innovative Ideen und neue Geschäftsmodelle in traditionellen Branchen. Clever Clover hat eine Reihe von Partnerschaften mit innovativen, frühphasigen Unternehmen in den Sektoren Lebensmittel, Reisen, Freizeit und Fertigung geschlossen und unterstützt diese durch Investitionen, Wissen und ein umfassendes Experten-Netzwerk. www.cleverclover.vc

Kevin Spacey at the Bits & Pretzels Founders Festival 2017

Great news from the largest German start-up conference Bits & Pretzels: Hollywood actor Kevin Spacey comes back to Munich.

The largest German Founders Festival brings together more than 5,000 founders, start-up enthusiasts, investors and key decision-makers from the startup ecosystem, including many top CEOs, as well as the founders of Airbnb, Delivery Hero, Zendesk and many more successful startups. The festival ends with the grand finale at the traditional Munich Oktoberfest.

Last year Kevin Spacey held the opening speech and visited the Oktoberfest. The team is now pleased to announce that Kevin Spacey will return to Munich to attend the Bits & Pretzels Festival.

In addition to his success in the film sector Spacey is an investor in various start-ups and technology companies, and a world-renowned speaker at tech conferences. Among other things, he already inspired the audience of the World Economic Forum in Davos. There he talked about the art of storytelling and its role in the future of technology.

Founders at Forum Alpbach

This week, Berthold Baurek-Karlic and Fabian Greiler attended for Venionaire the European Forum Alpbach. It is a great opportunity to meet top managers and politicians as well as founders and entrepreneurs in the Tyrolean Alps.

Among others Daniel Horak (CONDA), Markus Raunig and Daniel Cronin (AustrianStartups), Maggie Childs (Metropole), Lisa-Marie Fassl (AAIA), Christoph Richter (Intellyo), Mic Hirschbrich (Updatemi), Bernhard Hauser (oratio),  Thomas Primus (foodnotify), Andreas Tschas, Markus Lang and Anton Schilling (Pioneers), startup journalists and media managers Dejan Jovicevic (DerBrutkasten.com) and Jakob Steinschaden (TrendingTopics.at), as well as investors Nikolaus Futter, Andreas Tomek (European Super Angels Club) and Michael Krammer attended the event.

 

In discussion with corporate managers, we see a lot of interest in the topic of corporate startup engagement. With the ever growing speed of innovation cycles, even the biggest corporations are facing competition from young companies that traditionally would never have been in the position to compete. One strategy for corporates is to work closely with startups and therefore enable access to innovation.

In addition to the official program, the European Forum Alpbach offers a whole range of exciting side events. Verbund Dialog is one example of such a side-event and this year Wolfgang Anzengruber (CEO Verbund), Rainer Seele (CEO OMV) and Franz Kainersdorfer (Member of the Management Board Voestalpine) discussed the future of the energy sector.

It is almost impossible to participate in all events. Alpbach relishes from informal conversations, intensive networking and the overcoming of temporal limitations of everyday life.

 

Our CEO Berthold Baurek-Karlic collected quotes of people about Alpbach on his private blog in German. Check out what our foreign minister Sebastian Kurz, KPMG Partner Andreas Tomek, NEOS founder and leader Matthias Strolz or ÖBB manager Yvonne Pirkner have to say about the Forum: “Stimmen vom Europäischen Forum Alpbach 2017”.

Article Part 2: Comprehend, Sense, Act – The basis concept of AI

In cooperation with Venionaire Capital, DerBrutkasten.com publishes a four-part article series on the subject of artificial intelligence. We are concentrating on the economic aspects of how AI works to the current research and the future of artificial intelligence.

In the first article we described “Artificial Intelligence (AI)” as the ability of a machine to learn and adapt from its own experience. In this article we want to get deeper in the matter. AI consists of diverse technologies that are the result of a combination of three elements: comprehend, sense and act.

Language Processing and knowledge representation are important for comprehend.  Natural Language Processing (NLP) combines technologies that are able to understand and generate speech in spoken or written form. Knowledge representation helps to communicate knowledge and facilitate subsequent decision-making, for example digital assistants.

Sense includes machine vision, voice recognition and further processing in sensors. This makes it possible to capture, identify, analyze and process the input information from cameras, microphones or other sensors.

Once information is collected through comprehending and sense, the logical third step is action. This is mainly used in industrial robotics, as Amazons show impressively.

These are the three pillars of the artificial intelligence According to Stuart Russel and Peter Norvig machines must also have specific abilities to act as a human being. Known in this context is the Turing Test from 1950, where a human questioner talkes with two unknown conversation partners. One of them is a person, the other one is a machine. If the questioner does not suceed in telling which of them is the machine, the machine wins. This test is now more than half a century old and we are still at the beginning of the development.

 

For the whole article click here.

 

Article Part 1: Economic Growth through Artificial Intelligence

In cooperation with Venionaire Capital, DerBrutkasten.com publishes a four-part article series on the subject of artificial intelligence.  We are concentrating on the economic aspects of how AI works to the current research and the future of artificial intelligence.

The first part shows the economic growth through artificial intelligence. While most people still associate the terminator with artificial intelligence, it has long become a key technology. Also Austrian Startups in cooperation with the ÖFAI (Austrian Research Institute for Artificial Intelligence) contribute to this growth with Voicebots and Chatbots such as Yodel.io.

The International Data Corporation sees the US market potential for artificial intelligence in three years at approximately 34 billion euros and the contribution to the economic growth only in Germany will be 1.6%. This is an important argument for investors and caused 2016 investments in the amount of 5 billion Euros. Although there is a clear distance between the USA and Europe, the number of completed deals in Europe is rising. For example the largest financing round in 2017 concluded the German company Kreditech with about 138 billion Euros. The amounts of Austrian startups like FRUX, Kiwi Security or Cortical.io are clearly smaller. Sales will increase enormously between 2016 and 2025 even if there are warnings about the current development for example from Elon Musk.

For the whole article click here.

 

Get a 35% discount for EURUS 2017 Private Capital Forum

The EURUS 2017 is a foremost high-level international private capital forum taking place at the Gottlieb Duttweiler Institute in Zurich, Switzerland, October 12.

Bringing together leading fund managers, institutional and corporate investors, family offices, top-tier consultants and entrepreneurs from across Europe, the forum (and its venue) offer the perfect milieu for executives to take a step back to evaluate strategies, to exchange critical insights, to explore high-quality, investment opportunities and to forge strategic relationships.

Over 200 delegates and up to 60 speakers from over a dozen countries will shape the forum’s engaging, content-rich agenda, with concurrent sessions running full-day across three key asset classes: private equity, venture capital, real estate.

 

With the special code SPRT17 all ESAC Members and Venionaire Stakeholders get a 35% discount on regular admission:

Click here!

 

Get your Early-Bird Ticket for Bits & Pretzels now with a special Goodie

 Image: © Dan Taylor/Heisenberg Media.

 

Bits & Pretzels is a 3-day event for founders, startup enthusiasts, investors and business incubators. The festival will take place from September 24– 26, 2017 in Munich. The best-known entrepreneurs from around the world as well as young aspiring entrepreneurs will meet at the event to mingle with like-minded people. Speakers this year include successful digital founders such as Philipp Lahm (Partner at Fanmiles, Founder of Philipp Lahm Holding), Dr. Philipp Kreibohm (Founder & CEO Home24), Ralf Wenzel (Founder & CEO at Foodpanda, Chief Strategy Officer at Delivery Hero), Rolf Schrömgens (CEO & Co-Founder Trivago), Salome Preiswerk (Founder & CEO Whitebox) and Nikita Fahrenholz (Co-Founder & CEO Book a tiger).

To buy your ticket click here, enter the Code PARTNER_NW17 and get your B&P Hoodie for free!

WHERE TO FIND US

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A-1010 Vienna, Austria (EU)
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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.