Photo: Sohaila Ouffata

Women in Tech: Sohaila Ouffata from BMW i Ventures

As Director of Platform, Sohaila Ouffata focuses on developing and implementing strategic growth initiatives for the startups with which BMW i Ventures, the BMW Group's corporate venture capital fund, works. Her work aims to establish transformative partnerships and help portfolio companies achieve success and scale. In this interview, we wanted to learn more about her work and which industries she finds particularly exciting.

Munich Startup: To begin with, please outline the most important milestones in your professional career.

Sohaila Ouffata: I am Director of Platform in the global team of BMW i Ventures In this role, I ensure the strategic development of our portfolio startups and help them achieve greater growth. The focus of these activities is the successful conclusion of strategic partnerships – both between the startups and the BMW Group and with partners outside of the industry. All "value-add" activities of our venture platform aim to promote both the financial development of the portfolio companies and their strategic added value. Since 2016, I have also been Managing Director of the European business unit of BMW i Ventures. Before joining BMW i Ventures, I worked for several years in management consulting and the telecommunications industry, where I focused primarily on the evaluation and development of digital business models.

Munich Startup: BMW i Ventures's second, $300 million fund focuses on sustainability—in addition to transportation, manufacturing, and the supply chain. Why is this topic given such a prominent position?

Sohaila Ouffata: The use of innovative and disruptive technologies offers incredible opportunities for the sustainable development of all economic sectors towards greater efficiency. This can involve the more efficient use of resources, the development of a circular economy, the reduction of CO2 emissions, or the better use of energy in industrial production. One example is our investment in Boston MetalThe US company has found a way to produce steel with lower CO2 emissions by avoiding the use of coal and relying instead on electrolysis. This benefits not only the mobility industry, but all sectors that cannot do without steel. The effect can be enormous: around two billion tons of steel are produced annually, which accounts for around ten percent of global carbon emissions. Accompanying such technologies on their growth path inspires me every day. Given the global challenges we face, I am convinced that we will see many more disruptive solutions in this area in the future.

Innovations for the transformation of the mobility industry

Munich Startup: What solutions are you looking for?

Sohaila Ouffata: We are interested in solutions that drive transformation in the mobility industry through technological and sustainable innovations. A glance at our portfolio clearly shows which companies inspire us. These include, for example, ONE – our next Energywho have developed hybrid technology to improve the safety and range of batteries. Or Lilac Solutionswho have developed an environmentally friendly process for the extraction of lithium, and BComp with its natural fiber composites made from flax, which can be used in vehicles, aircraft, and even ships. Many of the technology companies we invest in often have applications in other industries, allowing us to drive innovation across sectors. Our target markets are currently Europe, including the UK, Israel, and the USA. We are primarily interested in startups, most of which are in Series A or Series B financing rounds.

Munich Startup: Which technology or industry do you currently find particularly interesting?

Sohaila Ouffata: Our research field is extremely dynamic overall; we're constantly evaluating promising technologies. If I had to choose, it would currently be primarily circular economy solutions that contribute to making the entire value and supply chain more sustainable, as well as the entire field of battery technologies. There will certainly be some more innovative developments here in the near future.

Munich Startup: What makes a good pitch for you?

Sohaila Ouffata: A good pitch immediately demonstrates that a relevant problem in a large market is being solved with an attractive business model. Anyone who wants to pitch well needs to be able to tell a "good" story and be well-versed in discussions with investors. One of the winning criteria for me is often the expertise of the founders and the team. If the foundation is right here, that's a good prerequisite. Because we know from experience that the business model can often change or shift during the process.

A systematic problem

Munich Startup: There are still significantly fewer female investors than male investors, and the proportion of female founders in Germany is less than 18 percent, according to the German Startup Monitor 2021. Do you see a connection between the two aspects?

Sohaila Ouffata: I firmly believe that access to capital for female founders is strongly correlated with the number of female investors. This is a systemic problem that must be addressed from both sides – both the next generation of female founders and future female investors must be specifically developed. We could lay the foundation for this in education. Currently, neither entrepreneurship nor financial literacy is taught in our schools. On the investor side, I see great potential among established businesswomen, who could be introduced to investing through angel programs, for example. Targeted regulation could provide tax benefits for investments in women's business models to create additional investment incentives. I am particularly concerned with female founders with a migration background. This target group is severely underrepresented, and while investments in "minority founders" are already a relevant topic in the USA, this has not yet been on the agenda in Germany.

Munich Startup: In your opinion, what advantages do diverse founding teams bring?

Sohaila Ouffata: Numerous studies have shown that diversity and inclusion in companies contribute to a company's economic success. In my experience, teams that are particularly successful are those that are diverse in terms of skills, gender, and background.

Munich on the international startup map

Munich Startup: In your opinion, what could be improved at the Munich startup location?

Sohaila Ouffata: "Double-down on our competences" means we need to invest much more in our competencies – especially in the field of greentech. When I began to become more involved in Munich's startup ecosystem about 13 years ago, the region wasn't yet on the international radar. Today, Munich is known as the "Isar Valley" for deeptech expertise in Europe. If we also succeed in building competencies in the field of "green industrial tech," then Munich will be an integral part of the international startup landscape in the future. In this context, the ecosystem must be further expanded by all stakeholders involved – universities with relevant degree programs, investors in both early and late stages with a local presence, and targeted government funding programs and formats.

Munich Startup: Which investor would you like to meet in person? And what would you ask them?

Sohaila Ouffata: I'd like to answer the question a little differently, as I usually only find people truly fascinating once I've met them, rather than just following them from afar. This year, at a small event in Davos, I Lubna Olaya She is a Saudi Arabian businesswoman and investor who was the "first" in many areas. She spoke incredibly authentically about her career and her personal motivation.

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