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How to Sell Like an American: Embracing Boldness in Marketing

Marketing strategies in Europe and the United States have historically followed different approaches. While both regions are home to incredible innovation, the cultural and strategic differences in marketing practices and how to sell are clear. Subsequently, European companies can learn from the bold, story-driven marketing style that has propelled many American brands to success. 

How to sell: A Cautious Approach vs. Bold Vision in Marketing 

Alexander Oswald, President of the Austrian Marketing Association, who brings over 30 years of marketing experience—including a decade spent at Nokia during its peak—points out that marketing in Europe tends to be more cautious. European companies often prioritize data, facts, and scientific approaches in their marketing strategies. While this data-driven style has its benefits, it can lead to a reluctance to take risks and to avoid bold, visionary marketing tactics. As a result, European companies sometimes struggle to connect emotionally with consumers and deliver impactful messages. 

In contrast, American marketing is defined by confidence and boldness. American companies are known for selling not just products, but stories, dreams, and ideas. This “bold vision” approach sets American marketing apart. Instead of focusing solely on technical details, American marketers prioritize creating emotional connections with their audiences. They focus on the possibilities, the future, and the experience of using their product or service. 

This difference is evident when comparing brands like Apple to many European counterparts. Apple doesn’t just sell a phone—they sell an experience, a lifestyle, a transformation. They create a sense of belonging to something innovative and powerful. While European brands often excel in technical quality, they sometimes struggle to create that same emotional resonance with their customers. 

The Power of Storytelling in Marketing 

One of the areas where European companies can learn from the American approach is storytelling. American marketing often revolves around creating a compelling narrative that captivates audiences emotionally. It’s not just about presenting facts or product features; it’s about making consumers feel something. This is where European marketing can improve. 

In the past, many European brands relied on straightforward, fact-based marketing. They would focus on details—such as product capabilities, comparisons to competitors, and market fit. While these aspects are important, they don’t always capture the imagination of consumers. 

On the other hand, American marketers excel at creating emotional stories. Whether it’s the thrill of innovation, the promise of improvement, or the sense of belonging to something greater, American brands tap into emotions that resonate deeply with their audience. By focusing on the “why” rather than just the “what,” American companies succeed in building passionate customer bases, not just transactions. 

How European Companies Can Improve Their Marketing 

To compete on a global scale, European companies need to embrace a shift toward more bold, visionary marketing strategies. Instead of focusing solely on product features and specifications, they should prioritize the experience their products or services offer. By highlighting the emotional benefits of their offerings, European brands can create stronger consumer connections and foster long-lasting relationships. 

A critical part of this transformation is adopting a more customer-centric approach. European companies need to think from the consumer’s perspective: What problem is being solved? What emotional need is being met? How can the brand inspire and engage the audience? 

A Call to Action for European Marketers 

In today’s competitive global market, it’s essential for European companies to evolve their marketing strategies. It’s not enough to just promote product features or focus on technical correctness. Companies must craft compelling stories that resonate emotionally with their customers. 

By adopting a bolder, more visionary marketing strategy—one that emphasizes storytelling and emotional engagement—European companies can unlock new growth opportunities. The key is to shift from merely selling products to selling experiences, dreams, and possibilities. 

As we’ve seen with American brands, successful marketing is not just about presenting facts. It’s about creating a story that captures the imagination and makes consumers feel part of something bigger. European companies that embrace this mindset shift will position themselves for greater success—leading with vision, passion, and emotional connection, rather than simply following data and numbers. 

To learn more about how European marketing can evolve and how storytelling plays a key role in this transformation, listen to our latest podcast episode with Alexander Oswald, where we dive deeper into these topics. 

 

AI Race – How Europe is trying to catch up

Artificial Intelligence (AI) is poised to be a defining force in the global economy for years to come. While the United States has taken a leading role in the AI race, and Chinese startup DeepSeek shook the industry by launching its R1 Large Language Model, Europe faces challenges in keeping pace. This disparity raises concerns about potential dependencies and competitiveness. 

The European AI Landscape 

Despite Europe’s rich pool of talent, esteemed research institutions, and a technology-friendly industrial base, the continent lags in AI investments. In 2023, private venture capitalists in the U.S. invested approximately €67 billion in AI development. On the contrary, Europe, including the UK, saw only €11 billion in similar investments. This significant gap suggests that without strategic interventions, Europe risks falling further behind, leading to increased dependency on external technologies. 

Recent Initiatives and Investments 

Recognizing these challenges, European leaders have initiated substantial investments to bolster the continent’s AI capabilities: 

The InvestAI Initiative: Launched by the European Commission, this initiative aims to mobilize €200 billion for AI investments across Europe. A portion of this fund is dedicated to establishing AI gigafactories. Furthermore, the factories specialize in training complex AI models, to enhance Europe’s infrastructure and competitiveness. 

National Commitments: France has unveiled plans to invest €109 billion in AI, focusing on infrastructure development and computing clusters. This move is designed to position Europe as a formidable player in the global AI race, currently dominated by the U.S. and China. 

In 2024, European AI companies raised nearly €3 billion through 137 deals, which is about 35% more than the year before. French companies took the top spot in terms of countries, securing over €1.3 billion across 14 deals (almost half of all AI investments in Europe in 2024). German companies followed in second place with €910.3 million raised over 23 deals, while the UK ranked third with €318.1 million raised over 33 deals. 

You can follow the latest AI deals with Venionaire DealMatrix’ Deals Monitor. 

The Role of Venionaire Capital 

At Venionaire Capital, we recognize the critical need for Europe to not only retain but also nurture its AI talent and enterprises. Our commitment is to support and invest in promising AI startups. Moreover, we are providing them with the necessary resources and guidance to thrive within Europe. By fostering innovation and facilitating access to capital, we aim to create an environment where AI companies can flourish, reducing the allure of relocation to more investment-rich regions. 

Europe stands at a crossroads in the AI sector. While challenges persist, the recent surge in investments and strategic initiatives offers a pathway to revitalizing Europe’s position in the global arena. Through collaborative efforts between governments, investors, and the tech community, Europe can lead in AI innovation and application. 

How a potential Trade War impacts European Venture Capital Markets

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?

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.

Monkee and Biome Diagnostics Shine in Top Startup Ranking

Staying at the forefront of venture capital requires an eye for groundbreaking opportunities. Venionaire Capital and Venionaire Ventures S.à r.l., manager of the EXF Alpha S.C.S fund for the European Super Angels Club (ESAC), are excited to see two of the fund’s standout portfolio companies, Monkee and Biome Diagnostics, recognized as top Austrian startups for their innovation. Both were featured in the recent issue of trend, one of Austria’s leading business publications, showcasing their contributions to their respective fields. 

Monkee and Biome Diagnostics: Leading in Innovation 

Monkee, ranked 4th, is transforming personal finance with its “Save Now, Buy Later” platform that promotes healthy saving habits without relying on credit. Meanwhile, Biome Diagnostics, ranked 10th, is advancing personalized medicine with products like myBioma for gut health analysis and BiomeOne for predicting immunotherapy responses. Both startups exemplify impactful innovation in their respective markets and demonstrate the effectiveness of Venionaire Capital’s strategic investment approach. 

Insight into the Evaluation Process 

The list of the 150 most innovative companies in Austria represents a redefined view of the national business scene. Compiled by trend. in partnership with the German market research firm Statista, the process involved over 25,000 individual assessments. Moreover, the ranking featured the top 10 ATX companies, the 20 best international firms with Austrian subsidiaries, the 20 leading startups, and 100 other innovative businesses led by Alpla. 

Patents were an important criterion, but the assessment extended beyond that. The process included surveys of 9,000 employees and consultation with 400 innovation experts. 

The Final Scores 

A 40-member expert jury, comprised of seasoned business consultants, patent attorneys, and startup specialists, played a crucial role. Their evaluations held significant weight in the final scores. This jury provided invaluable insights into product and process innovation, as well as innovation culture, offering a comprehensive view beyond standard metrics. 

Venionaire Capital’s Focus on Growth and Innovation 

Venionaire Capital is dedicated to nurturing forward-thinking startups through the EXF Alpha S.C.S fund managed by Venionaire Ventures S.à r.l. The recognition of Monkee and Biome Diagnostics highlights the effectiveness of this strategy. Supporting companies that push boundaries reinforces Venionaire’s commitment to fostering progress in various industries. 

Acknowledgments like these emphasize the dedication of portfolio companies and the strategic acumen of Venionaire Capital. The firm looks forward to enabling more innovative solutions and creating value for its investors. 

 

“Mom, are we there yet?” Bitcoin’s Journey Beyond the Election Cycle

Author: Igor Hadziahmetovic | Investment Director & Web3 Tech Lead at Venionaire Web3


In the short term, it doesn’t really matter who wins the US elections. The bitcoin price is poised to appreciate further. The reasons for this optimism are manifold; some of the key factors revolve around bitcoin being an accepted hedge against economic turbulence and uncertainty:

  • Ever-increasing US national debt and money printing
  • Increased weakening of the USD as the world’s reserve currency
  • De-dollarization by central banks and rising sovereign debt as demand driver for bitcoin and gold reserves
  • Centrals banks, governments, and corporates increasingly include bitcoin along with gold in their reserves and balance sheets
  • Financial institutions are increasing their BTC adoption and crypto-industry involvement
  • US ETF inflows are increasing, with other countries following suit

On Tuesday, 29-Oct, bitcoin approached its all-time high (ATH) at around $73.6k before quickly retracing. Depending on the trading venue, some prices did breach new highs, as seen with bitcoin CME futures reaching a new ATH at $74,485. The last week of October brought exceptional price performance, with bitcoin closing the month up 10.9%. Currently, we’re seeing price retracements across the board. When bitcoin experiences even minor corrections, altcoins typically face more significant declines due to their higher beta.

Weekend price action, notorious for lower liquidity and reduced trader participation, often allows for wider price swings before Monday’s open. The last weekly close left a large upper wick reaching into the ATH price range, before retracing to close +1.18% higher than its opening price. However, on monthly, weekly, and daily timeframes, bitcoin maintains its bullish stance as long as it holds the $65-66k level. Even a retracement from $74k to $65k, representing a 12.5% decrease, would not disrupt bitcoin’s bullish market structure.

As a side note: Election days typically see heightened risk premiums, with many traders and investors looking to reduce their exposure. bitcoin experienced similar price retracements a few days before the 2016 and 2020 elections, dropping approximately 7% and 10% respectively. Notably, these pre-election lows were never retested after the elections concluded.

Let’s zoom out a bit.

The short-term impact of the US presidential elections on bitcoin’s price appears to be already priced in, suggesting a potential sell-the-news event. I’m not sure if this holds true for Ether, though. It is interesting to see what historical data shows for the post-elections period of bitcoin’s performance (BTC Index). It can help us to understand what might lie ahead:

Year of elections 30d performance 90d performance 180d performance
2012 24.15% 92.02% 937.91%
2016 9.88% 49.55% 135.95%
2020 41.75% 161.89% 321.88%
Average 25.26% 101.15% 465.24%

The regulatory landscape for bitcoin is improving globally, not just in the US. This trend is expected to continue under the new president, whoever that may be. bitcoin became one of key topics in the US election campaign, which underscores its importance in the political landscape and its role in national interests. I guess bitcoin has indeed come a long way from being ignored and later fiercely opposed as a ‘currency for criminals.’

But, beside bitcoin, there are thousands of other coins and tokens out there that haven’t really profited from positive regulatory development. Yet.

I find this point far more interesting for the post-elections period, potentially providing quality altcoins with strong tailwinds and boosting their adoption. Verticals and sectors like Payments (CFS), zk-Tech, DePIN, SocialFi, DeFi, Abstractions, xVM, and others could experience enormous growth. Currently, many technically sound and battle-tested projects face constraints in reaching their target audience and achieving greater adoption due to regulatory risks, uncertainty, red tape, and selective crackdowns.

US politicians have communicated their ambition for the country to become the world’s leading crypto industry hub, which fuels my optimism for a positive shift in regulatory stance towards quality altcoins. As we know, the crypto industry is much, much more than just bitcoin.

In case of delayed election results (e.g., recounting, contesting, etc.), the short-term volatility period may be prolonged, potentially distorting investors’ long-term perspective. This could drag on into January — the official inauguration is set for January 20th. Reacting to short-term, election-driven market changes might shake out some investors. In other words: if you hold bitcoin and quality altcoins, don’t let occasional price retracements disturb you if your investment horizon is 6-12 months or longer. Similarly, it’s good to keep some capital aside for accumulation opportunities.

The Future of Climate Summit Vol II: A Landmark Event for Sustainable Innovation

The world is at a critical juncture in the fight against climate change. According to the Intergovernmental Panel on Climate Change (IPCC), climate change could become irreversible by 2030. With just seven years left to create meaningful change, the urgency to act has never been greater. In response, the PDIE (Purpose Driven Innovation Ecosystem) Group and Venionaire Capital are hosting “The Future of Climate Summit Vol II.” This event will unite influential voices and leaders to address the global climate crisis. 

  

A Pivotal Moment in the Climate Movement 

Scheduled for September 20, 2024, “The Future of Climate Summit Vol II” will take place at Dentons Law Firm’s head office in New York Midtown. This summit promises to be a significant step toward a sustainable future. It will provide a platform for experts, visionaries, and changemakers to exchange ideas and present innovative solutions to the climate crisis. 

  

Organized in collaboration with The Earthshot Prize, this event underscores its importance and potential to drive real change. 

  

Exploring “Positive Futures Enabled by AI” 

The summit’s theme, “Positive Futures Enabled by AI,” focuses on critical topics. These include energy transition, the future of sustainable cities, decarbonization, food and agriculture, and natural capital and biodiversity. These discussions aim to encourage collaboration and generate actionable strategies to address climate challenges. 

  

Moreover, the summit features an impressive lineup of speakers, including: 

  

Xiye Bastida: Youth activist who rallied 30,000 followers for Fridays for Future in New York. 

Augusto Lopez-Claros: Chairman of the Global Governance Forum. 

Hindou Oumarou Ibrahim: Earthshot Prize Council member and advocate for Indigenous peoples’ rights. 

Daniel Blackman: Senior Advisor for STEM Recruitment and Diversity at the United States Environmental Protection Agency. 

Dr. Luke Haverhals: Founder and CEO of NFW, a company dedicated to creating sustainable materials. 

  

These speakers bring diverse perspectives and innovative ideas to ensure the summit is enlightening and impactful. 

  

A Call to Action for a Sustainable Future 

Christian Schmitz, founder and CEO of PDIE Group and Associate Partner at Venionaire Capital, emphasizes the importance of this event. He states, “We believe that by bringing together outstanding solution providers, investors, and global leaders, we can accelerate progress toward a sustainable and resilient future. Through engaging discussions, impactful collaborations, and visionary ideas, we aim to create a community committed to solving our climate crisis and making a lasting impact.” 

  

Berthold Baurek-Karlic, CEO and founder of Venionaire Capital, shares this sentiment. He says, “At the Future of Climate Summit, I expect groundbreaking innovations to address our planet’s most pressing challenges. This summit will bring together a dynamic mix of innovators, thought leaders, and investors. It will create a powerful platform for collaboration and progress. I am confident that the synergies formed here will drive impactful solutions and pave the way for a sustainable future.” 

  

Secure Your Spot at This Landmark Event 

With limited seats available, “The Future of Climate Summit Vol II” encourages individuals and organizations to secure their participation. This is more than just an event—it is a crucial gathering of minds dedicated to ensuring a sustainable future for generations to come. 

 

Spot Reservation: https://pdiegroup.com/future-of-climate-summit 

Revolutionizing Workplace Nutrition: The Launch of Linde Digital’s Social Snack Bar

In today’s fast-paced work environment, maintaining a healthy diet and fostering social responsibility is challenging. Recognizing this, Linde Digital has launched the Social Snack Bar. It was developed in close strategic partnership with Venionaire Capital, who proudly holds a stake in Linde Digital. This innovative app simplifies employee access to snacks and meals at work while promoting healthy eating and social responsibility.  

  

What is the Social Snack Bar? 

The Social Snack Bar allows companies to create a virtual snack store for their employees. Employers simply upload photos and descriptions of available snacks, transforming the workplace into a convenient digital marketplace. Employees can browse the selection, check available quantities, add desired snacks to a cart, and complete their purchase—all within the app. Moreover, the Social Snack Bar isn’t just a digital vending machine. It empowers companies to promote healthier lifestyles and demonstrate a commitment to social causes. 

  

A Win-Win for Employers and Employees 

One standout feature is its seamless integration with existing company systems. Employers can set up meal vouchers or subsidies directly in the app. This allows employees to see their current balance and make informed purchases. This feature is particularly beneficial for companies encouraging healthier eating habits. 

Furthermore, the app’s backend automates several processes. It generates a list of consumed snacks and forwards it to payroll. This ensures that snack costs are accurately reflected in salary calculations without manual effort. Additionally, the app manages inventory by automatically creating a shopping list based on real-time data, simplifying the restocking process. Best of all, companies can access these benefits for just 1 Euro per user, with a flexible monthly contract. 

  

A New Level of Social Responsibility 

The Social Snack Bar also offers a unique way to engage in corporate social responsibility. Employers can assign tags to individual products, setting lower prices for healthier snacks. They can also add a small donation to a charitable organization for every healthy snack purchased. “The key to this approach is that employers can assign tags to individual products,” explains Benjamin Jentzsch, Managing Director of Linde Digital and Linde Verlag. “For example, the price of healthy snacks can be set lower, and the company can also add a small donation to a charitable organization. This creates an extra incentive to promote healthy eating, social responsibility, and the well-being of the workforce. The accumulated donation amount is displayed in the app.” 

 

A Partnership for Innovation 

Since 2022, Linde Digital GmbH, a subsidiary of Linde Verlag, has been developing new digital business models. The Social Snack Bar is one of their latest innovations. It was developed in close strategic partnership with Venionaire Capital. Together, we create tools that address business needs and contribute to a healthier, more socially responsible work culture. 

  

Looking Ahead 

As companies explore ways to enhance employee well-being and promote social responsibility, the Social Snack Bar stands out. It’s more than just providing snacks—it fosters a healthier, more connected, and socially responsible workplace. The Social Snack Bar’s launch marks an exciting step forward in workplace innovation. We look forward to seeing its positive impact on companies and their employees. 

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

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

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

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