Holtzbrinck Ventures is a Munich-based early-stage investment fund. Since its founding in 2000, the investor has supported more than 150 startup teams, including Munich-based companies such as FlixBus, Westwing, Scalable Capital, and Stylight.
Barbod Namini, Principal at Holtzbrick Ventures, answered our questions. (The English original can be found here).
Never say never!
Which startups do you prefer to invest in?
Our focus is on consumer-oriented early-stage startups with a pan-European or global outlook. At the same time, we cover a wide range of industries. Ultimately, we are looking for strong teams tackling major challenges and offering significant market potential.
Would you also invest in lesser-known sectors?
Yes and no. We want to provide the best possible support to the companies in our portfolio and help them grow. This goes far beyond mere financing. If the investment is completely outside the usual Holtzbrinck venture area, there should at least be a clear indication of how we can best support the team through our extensive network and our many years of experience.
What kind of startup would you never invest in?
Never say never. Holtzbrinck Ventures' investment horizon has changed over the years. Some of our current portfolio companies would never have been considered ten years ago. That said, there are areas we would never invest in, such as gambling or the tobacco and weapons industries.
Do you scout for promising companies yourself?
Finding good investment opportunities is a central part of our work. As a team, we review thousands of business plans every year, attend events, and meet hundreds of founding teams. Of course, we have a personal network of business angels and entrepreneurs. When we receive a good tip from such a trusted source, we take a close look at the candidate.
Holtzbrinck Ventures as sparring partner
Do startups have to be afraid that you will interfere too much?
No, not at all. Startups should view Holtzbrinck Ventures more as a sparring partner. They benefit from our experience, our network, and our support. The day-to-day operations should always be managed by the founders or management team.
At what stage do startups ideally approach you?
Ideally, in the early stages. It's important to us that the founding team is working, that there's a clear business plan, and that a first version of the product is available. Most startups that approach us have already received funding from family and friends or a business angel and are looking for their first institutional investor. Of course, there are exceptions to the rule.
How long does it take from the first contact to the conclusion of the contract?
It always depends on the company's development stage, how comprehensive the due diligence investigation needs to be, and the desired investment amount. The process typically takes two to three months, but we've also closed deals in less than a month.
To be successful, a startup must…
… have a long-term vision and must not be distracted by the turbulence that will arise along the way.
On a journey together
Tell us the knockout criteria for the pitch!
Negotiating hard is acceptable. Lying, on the other hand, is completely unacceptable!
What have you ever miscalculated?
We invest in young companies, and there are many risks and unknowns. The market volume may be smaller than originally anticipated, the market may react differently to the product than expected, the team may not work together as well as anticipated, etc. Ultimately, we embark on a journey with the founders, and we experience successes and failures together along the way.
The trend of the year is…
... artificial intelligence. At least, "Artificial Intelligence" is the buzzword of the year, regardless of the business model.
Munich: Magnet for tech talent
What is the Munich startup scene doing right from the investors’ perspective?
With its many tech companies like Google, Siemens, Microsoft, Nokia, etc., Munich is a true magnet for great tech talent. It is the responsibility of the city and its investor network to provide these tech talents with a good platform and promote entrepreneurship.
Last but not least: Who do startups approach when they want to talk to you?
Ideally, the founder will start a conversation with us through a personal introduction. We also do a lot of public relations work, and it's very easy to find out which events we're attending. If our paths don't cross, founders can send their pitch materials to businessplan@holtzbrinck.net and the appropriate contact person will get in touch.
Many thanks to Barbod for the interview.
If you would like to read the interview in the original English: Please go this way.
