Munich Startup: Silvia, can you explain to us what Encourage Ventures does exactly?
Silvia Hänig, Encourage Ventures: Happy to. Overall, Encourage Ventures as Germany’s largest network for female founding ensures that more diversity enters the investor landscape. After all, 96 percent of venture capital companies are run by men, and large investments are primarily made in male-led startups. Only a negligible 1.6 percent of venture capital goes to female founders. We want to change this imbalance. Encourage Ventures enriches groundbreaking ideas with expertise and, above all, capital.
Munich Startup: There are still far fewer female investors than male investors, and according to the German Startup Monitor 2021, the share of female founders in Germany is less than 18 percent. Do you see a connection between these two aspects?
Silvia Hänig: Yes, I see a connection here. Many female startups have already pitched to male investors before they come to Encourage Ventures. According to their own statements, they feel much better understood here with their business model because they pitch to women. The feeling of being better understood and the familiar atmosphere certainly play a major role.
Lower risk appetite among female founders
Munich Startup: Based on your experience, would you say that women invest differently than men? If so, how does that show?
Silvia Hänig: During the financial crisis, it was observed that women invested more defensively and cautiously, which later turned out to be smarter. Since they were more successful with this investment strategy. However, you can’t really generalize that. Overall, I do observe that women invest more prudently and ask very smart, critical questions before committing to a deal. Studies also show that women are generally not as risk-taking as men. That clearly applies to investments as well.
Munich Startup: Which technologies or industries are of particular interest to your circle of investors?
Silvia Hänig: There are no preferences. Since Encourage Ventures is still in the building phase, we’re happy about every investor who joins our network. We already have over 500 investors and a similar number of registered startups. The trend is upward.
Munich Startup: Do women found companies differently than men?
Silvia Hänig: Fact is: women start fewer companies, but it’s also a fact: women found differently. Compared to purely male-founded companies, they often have more sustainable motives. For example, they want to improve corporate cultures, they want to bring mothers out of the part-time trap and back into leadership positions, they care about sustainable production methods, or they want to revolutionize the German education system. Their motivations are significantly ‘more noble’ than purely male-founded companies, which often focus on new platforms and technologies. What also stands out is that women usually found companies alone and not as a team with classmates.
Easy access to venture capital
Munich Startup: Work-life balance is an important topic for many women who want to start a company. What needs to change in your view so that women who already have children or want to start a family are not deterred from starting a business?
Silvia Hänig: The path to self-employment, especially for mothers or young women who don’t have children yet but fear a career setback in permanent employment, needs to be made easier. To this end, Encourage Ventures has specifically developed a position paper that clearly articulates the demand for a better startup ecosystem: especially in the growth and scaling phase, it’s important that women have easy access to venture capital. Especially when a mother starts a company, she needs competent employees quickly; there should be programs that systematically support personnel costs for female startups.
Munich Startup: What advantages do you see in diversely composed founder teams?
Silvia Hänig: Of course, diversely composed founder teams also bring a broader spectrum of perspectives. Age diversity is also particularly helpful for founders. At Encourage Ventures, female founders benefit greatly from experienced mentors who support them closely, especially in the early stages, and provide valuable assistance in very different business areas. From marketing to controlling.
Munich Startup: Does it seem like a good time to start a company right now?
Silvia Hänig: The economic signs are certainly not pointing in the right direction, but that shouldn’t dampen the general motivation to start a business. Economically difficult times have already been the impetus for many today’s successful companies to focus on services and products that bring about change. With this in mind, the signs are good.
‘Closed-circle mentality’ in Munich
Munich Startup: What could be improved at the Munich startup location from your perspective?
Silvia Hänig: In the course of my work building the regional hub for Encourage Ventures, I’ve noticed a certain ‘closed-circle mentality’ in Munich. According to statements from many entrepreneurial organizations and initiatives – including from the Bavarian state government – one gets the impression that there’s a high willingness to network here. However, it quickly becomes clear that newcomers have to prove themselves first. This mentality is counterproductive for female new ventures, especially in the tech environment. An open and growth mindset would certainly work better.
Munich Startup: Which female investor or investor would you like to meet in person? And what would you ask them?
Silvia Hänig: Since I’ve already met some brilliant investors in person, Warren Buffett comes to mind. I’d like to ask him which deal he completely botched.
