Raisin – How the financial crises inspired this former partner in a large consultancy to jump ship and found a startup

In this interview we talk to Dr. Tamaz Giorgadze, who came to Germany from his native Georgia, eventually becoming a partner at the German office of McKinsey & Company. During the financial crisis, he saw a demand for retail deposits by banks and decided to jump ship to set up his own company. The company is operating as weltsparen.de in Germany and raisin.com internationally. Joern talks to Tamaz and you get a quick overview of what banks actually do, where they get their money from and how retail investors in Europe profit from this.

We are talking during the interview about those topics:
Wholesale funding
Bank’s transformation function 
Duration

Regulatory measures of bank’s liquidity
Liquidity coverage ratio  
Net Stable Funding Ratio 

Deposit 
KYC – Know your customer 
AML – Anti Money Laundry
TÜV – A German association of mostly technical auditors

Payment topics we touch
SEPA
TARGET 2
And a correspondent bank system (all money transfer used to be done this way)

Deposit insurance schemes (how saver’s money is insured)
Harmonized scheme in Europe

Berlin Startup Jobs Fair 2017 – One of Germany’s hottest startup jobs fair

Ashok Dudhat and Mario Paladini proudly present the Startup Jobs Fair, an HR event to bring professional and grown startups together with talents who like to gain experience beyond what is possible in a corporate. Those talents who are looking forward to take the challenge to work as a part of a startup team.

The event will take place in Berlin from the 29th of June to the 1st of July. But unlike other HR events, Startup Jobs Fair does not a classical event in an exhibition hall with HR managers in suits behind a desk. It comes with a pre-party and an after beach party, to ensure a good and relaxed atmosphere for face to face conversations.

The event is great for meeting with recruiter’s face to face, networking with other corporations, increase brand awareness and an unique opportunity for job seekers to make personal connections. Tickets can be ordered here and with the discount code: startupradio20 you will get 20% off.

image credit: startupjobsfair.org

Startup News – February and March

Before we start Christian is talking about the taxi medallions in New York, once considered a fancy and lucrative investment. Now they are in a steady decent due to Uber, Lyft, and their competitors. This can also be taken as a sign of disruption of a traditional (taxi) market:

2011

Why taxi medallions cost $1 million – Reuters http://ow.ly/Aw7Z30aoYm4

2013

Taxi Medallions: Golden Investment on the Streets of New York – WSJ http://ow.ly/ysx230aoTX3

2016

NYC yellow cab medallion prices falling further – Business Insider Deutschland http://ow.ly/y7uy30aoTXc

 

Christians food for thought: Self-Driving Trucks Are Going to Hit Us Like a Human-Driven Truck http://ow.ly/3saJ30ap2pk

 

February

March

 Uber

Two Executives to Leave Uber, Adding to Departures – The New York Times http://ow.ly/fyOX30a5qoz

Morning Agenda: The Exodus From Uber Continues – The New York Times http://ow.ly/EOXf30a5qvG

In Video, Uber CEO Argues With Driver Over Falling Fares – Bloomberg http://ow.ly/HaZ230ap1dR

Growth vs. Profits: Uber’s Cash Burn Dilemma  http://buff.ly/2kbB8oL

 

SoundCloud

SoundCloud needs more money, or it may sell at a fire-sale price wrote Recode here http://ow.ly/kWg2309SWuj

Our story, we left SoundCloud pretty early on! http://www.gruenderszene.de/allgemein/soundcloud-bewertung-geruechte

[Background:]

Spotify, which would like to go public next year, says it has more than 50 million paid subscribers worldwide. Apple Music says it has more than 20 million paid subs.

SoundCloud’s stall has been out in the open for some time. Investors pegged its value at $700 million in 2014, and since then it has raised money twice — including last year’s $70 million Twitter investment — at the same valuation.

The service says it has 175 million monthly unique users, but it hasn’t updated that number since 2014, either.

 

Miito

The third biggest German Kickstarter ever is bankrupt. It was meant to become a great looking induction designer water boiler, but things didn’t work out. The “remaining money” shall be reimbursed, the founders said. How much of the 800.000 Euros collected still “remained”, was not publicly confirmed.

http://www.gruenderszene.de/allgemein/miito-kickstarter-insolvenz

 

Marguerite talks about the Single European Payment Area (SEPA), learn more here: https://en.wikipedia.org/wiki/Single_Euro_Payments_Area

 

SXSW-Wrapup

German startup Holoplot wins SXSW Interactive Innovation Award in the category Music and Audio. They build advanced sound walls that allow focused sounds in a train station e.g., coming out of a wall with more than a thousand sound units, specifically aiming at passers-by.

http://www.gruenderszene.de/allgemein/berliner-startup-holoplot-sxsw

 

Horse Analytics, offering a wearable for horses, made it into the finals of the SXSW Accelerator pitches. “Your horse in your pocket” is their claim.

https://www.horse-analytics.com/

 

Lamp Startup lampenwelt.de gets an additional 120 million Euro in funding. A true hidden champion.

http://www.gruenderszene.de/allgemein/hidden-champion-lampenwelt-120-millionen

 

BaFin said to be close to handing insurance license to Berlin-based fintech incubator FinLeap http://ow.ly/lqC930a48UM

 

Rocket Corner

“Der Fall Ikarus”

German media continue their critical takes on Rocket Internet. This time, it was the weekly Wirtschafts Woche which came up with an analysis about Oliver Samwer and the ongoing crises at Rocket. Summary: “No plan, no profits, no new ideas: Oliver Samwers Startup Manufactory runs in crisis mode. Will Delivery Hero and Hello Fresh offer the chance of a turnaround? Confidential Documents raise concerns.”

http://www.wiwo.de/my/unternehmen/it/rocket-internet-der-fall-ikarus/19523396.html?ticket=ST-912737-v7KgFRELSyJWzaWY5fJm-ap2

 

Frankfurt:

 

Clark.de, one of Bloomberg’s 50 most promising startups

These Are the 50 Most Promising Startups You’ve Never Heard Of said Bloomberg in March 2017. Now we want to change that for one of these startups! Clark.de an InsurTech from Germany, headquartered in Frankfurt am Main.

Here is the interview (we did publish it in the meantime http://ow.ly/gfvm30apSQ8)

 

This is how the Fintech center TechQuartier tries to attract bank related startups.

http://www.gruenderszene.de/allgemein/tech-quartier-frankfurt-am-main-fintech-rhein-main

 

Frankfurt School of Management’s First startup night – March 16 – a big success!

 

Parcel service Hermes acquires majority stake in Frankfurt-based startup Liefery http://ow.ly/Xz2z30a4A5g

 

Stuart Cameron emailed us, the CEO of Uhlala – a company which supports, promotes and connects LGBTI people and women in leadership. With their Unicorns in Tech community, they are organizing Germany’s first LGBTI hackathon „Love to the Front” in Berlin on the 31st April. It’s hosted by Erasys.

More at http://unicornsintech.com/work/hackathon/ or at unicornsintech.com, then scroll down to events.

Housekeeping:

 

Also, do not miss Startup Radio in Berlin – covering and moderating the technology panel of the first International Cannabis Business Conference to be held in Germany after legalization.

 

Brief Introduction by Marguerite to Cannabis Startup world – including her coverage of the ICBC April 9-11 event – go to the website in the notes.

http://internationalcbc.com/icbc-berlin-2017-tickets/

October Startup News Germany

House Keeping:

Wohoooooo! The first recognition for our English podcast Startuprad.io. Lately, our German channel was doing well. Now the English one is picking up speed as well. We have been the only podcast from Germany listed in EU-Startups.com’s list of “14 entrepreneurship podcasts worth listening to” http://ow.ly/2pI1305Jbe1

Roadtrip Interviews and Event Highlights from Bits & Pretzels 2016 – Part I – startuprad.io http://ow.ly/uNKZ305CNTG

myLike – Get Inspired By People You Trust – startuprad.io http://ow.ly/dkle305CNXL

We had the first English version of our format www.startupcouch.tv last week. We had a live discussion, which we streamed in YouTube and Periscope. We discussed Robo Advisory with founders, bankers and consultants and more than 100 live guests with our friends from the Fintech Meetup Frankfurt.

You can see the recording of our Robo Advisor discussion live from Frankfurt here on YouTube https://www.youtube.com/watch?v=akCaXmFfgMQ

 

Ecosystem

German Startup Monitor:

Newest Survey of startups in Germany: 23% receive external financing like venture capital or credit http://ow.ly/5u4W305kNu0

Approx. 9% of responding startups are headquartered in Frankfurt and the surrounding RheinMain Area  http://ow.ly/MuFT305kNLF

 

Brexit and the uncertainty it causes … is are already hurting … FinTech startups in London writes Business Insider http://www.businessinsider.de/ceo-suade-diana-paredes-says-brexit-hurts-british-fintech-and-startups-2016-10?r=US&IR=T

 

European tech funding dropped 17% to 3.4 billion in Q3 2016 compared year on year. Also in the numbers are included Israel and Turkey. Notably, investments are down in two very important countries, namely Germany and UK. On the other hand, France was doing quite well. The decline of activity in the UK may be attributed to Brexit. In Germany Rocket Internet is not as active as they used to be https://t.co/blDXfneh1f

 

Hubs

Frankfurt

Our friends form Clark found that in Frankfurt there are more InsurTech and FinTech jobs offers, than in Berlin https://twitter.com/ClarkGermany/status/775716440787804161

 

We did attend the ceremony of German Accelerator Program, here in Frankfurt where the startups have been announced, which will be taken to the US (New York and the Valley) with the program. We will bring you interviews from there of course. Also there CEO Andy Goldstein from the German Accelerator said “Frankfurt is pretty much the center for FinTech startups in Germany” pic.twitter.com/ubyeZ5RAu1

 

FRANKFURT WOMEN IN FINTECH 

Frankfurt Women in Fintech has now had its second monthly meeting. The group has grown to 130 members since September. It was founded to help bring more women into the Fintech startup scene, as employees and founders. https://www.meetup.com/Frankfurt-Women-in-FinTech/

 

Berlin

Accelerator 500 Startups starts postseed mentoring program in Berlin reports German startup blog Gründerszene  https://t.co/UoHw3tWuyB https://t.co/aFeAE5DN20

 

Companies

Rocket Internet Corner

Rocket Internet’s cleaning service ZipJet acquires it’s London-based competitor Asteria Cleaners http://ow.ly/korA305J8AK

 

Rocket internet’s Wimdu and 9Flats merge to compete with airbnb – Let’s see if there is still “room” for them. Recently both have been under pressure lately since Airbnb is far ahead of them https://t.co/FFn1UTInK6

Related:

A pioneer room broker from Germany Gloveler (founded 2009), a kind of Airbnb or couch surfing – ends in insolvency https://t.co/P9zA617MRp

 

German authorities ask Tesla to stop using misleading Autopilot term in its ads. The response of Tesla remains unclear till now. Let’s see. We will keep you up to date https://t,co/vL47YBbmAY https://t,co/MtAOol8XbC

We discussed:

 

 

Many try to imitate Blue Apron. We found some ideas why they all (original and copy cats) seem to be a bit behind expectations: The “big problem [of Blue Apron] is that it’s some combination of three existing businesses, none of which are attractive.” ==> What does this mean for (German) copy cats? We are not sure, but will surely keep you up to date.  http://www.bloombergquint.com/business/2016/10/07/meal-delivery-startups-show-tech-disrupted

 

The Berlin-based Music Maker JAM is doing quite well, we found. They have now hits 1.5 million registered members and plan to hit 3 million by end of 2016 – Did you know this startup before? https://t.co/Xst0hKgRy4

 

Fintech is hot now in Germany:

 

  • German Startups Group invests in FinTech de. The new startup of ousted Kreditech founder Sebastian Diemer. The startup offers factoring solutions for freelancers, self-employed entrepreneurs as well as small and medium-sized enterprises. https://t.co/znCg0LB1iw
  • More FinTech: German FinTech Smava raises $34 million. Smava has been around for some almost 10 years now. It offers a credit comparison business https://t.co/mvAN66NI4Y
  • The deposit marketplace startup Raisin (which brokers bank deposits in Europe) has reached more than 1.7 bn € in invested volume https://t.co/Gv6A5JlVvT
  • Bad news for hyped Berlin based startup Cookies. It did not get the bridge financing it needed and therefore went into insolvency https://www.deutsche-startups.de/2016/10/27/cookies-insolvent/– A few days before co-founder Garry Krugljakow was ousted effective immediately, even though he was not in the company 6 weeks prior https://www.deutsche-startups.de/2016/10/25/cookies-krugljakow-muss-gehen/
  • Gründerszene has a long story on Michael Gastauer, founder FinTech WB21, which he wants to IPO in 2020. Now he claims a valuation of 2.2 bn US$. Now Gründerszene did its homework and found systematic fraud in the past of the founder, spanning London, Switzerland, Singapore and the British Virgin Islands. The swiss courts documents available to Gründerszene show illigeal gun ownership, a traffic accident with an injured police officer and fraud (involving his company G&S), for which he was sentenced to 18 month. He claims to have founded Apax Global Payment and sold it to a malayan company for 480 mn US$, where in the annual report of the acquirer no hint can be found. http://www.gruenderszene.de/allgemein/michael-gastauer-wb21-betrug-steuerhinterziehung-urteil-betrueger

 

In ecommerce in Germany there are depressing news for the locals. Since the Amazon platform is pulling ahead of it’s competition. According to the blog Netzoekonom Amazon generates in Germany 9.4 bn € in revenues, excluding the sales of its platform. With the platform it is even as high as 19.4 bn €. The closest local competitor Otto.de (a former catalogue retailer) is dragging along with 3.1 bn € in revenue, followed by Rocket Internet’s Zalando with 1.2 bn € https://t.co/8EoKPYxwK0

 

Crowdfunding insolvencies have been collected by Deutsche Startups. They include

Returbo – 1.088.050 Euro

Tollabox – 600.000 Euro

Vibewrite – 560.250 Euro

foodieSquare – 530.000 Euro

Paymey – 400.000 Euro

Twinkind – 350.000 Euro loss for the crowd and 500.000 for a business angel

Sommelier Privé – 300.000 Euro

Carzapp – 250.000 Euro

Lingoschools  – 155.744 Euro

fotovio – 148.640 Euro

https://www.deutsche-startups.de/2016/10/27/5-crowdinvesting-pleiten-die-richtig-weh-getan-haben/

 

5 notable Startup exits in Germany

* Heftig.co – Viral “news” and video portal bought by Funke Media Group

* InnoGames bought by Swedish company MTG

* Käuferportal (buyer portal) received investment from ProSieben Sat1 Media and General Atlantic, which in turn took over the majority

* Myhammer got acquired by US based HomeAdvisor

* Wimdu merged with 9flats, which could be interpreted as a takeover by 9flats. See above

https://www.deutsche-startups.de/2016/10/31/5-aktuelle-exits-die-jeder-mitbekommen-haben-sollte/

 

Stay ahead of the curve:

You Cannot Cut Your Way to Growth says the Red Rocket Ventures Blog, read more what it means for Growth Hacking https://t.co/nSh4cp0c4N

We found a report on Wholesale Transaction Banking, which is talking about leveraging Fin and Tech https://t.co/wKg1IDeel7

Our friends from EU-Startups write that Germany is getting serious about Alternative Finance http://ow.ly/kRMZ305J8Bq

Finally we found an Infographic on how the Industrial Internet of Things could change the world http://ow.ly/3T7h305J90x

 

Interview With The #Brexit Hedge For Startups, Fintechs And Investors, Joinmainland.com

In this interview Joe interviews Alex, who is the mind behind the #Brexit hedge for startups, fintechs and their investors www.joinmainland.com. The interview is done outside (link to pictures here) and therefore there is some noise in the background, we apologize for that. The area where both met in Offenbach just undergoes vast construction and will be a posh neighborhood pretty soon.

Alex wants to help #Brexit concerned startups and investors to open an office in this area (Offenbach or Frankfurt) and establish with it a Brexit #hedge. They can soon call up the office of the initiative and ask for help and advice to set up a small and cheap office in Offenbach or Frankfurt (each city opposite the other on the river Main).

The office space in Offenbach is new, high end and very cheap compared to London. You can learn more on the website www.joinmainland.com

Quick video explanation from the initiative.

Startup News from Germany – Summer wrap up

House Keeping:

This is the first news wrap up after the summer break. What we have been up to during the summer:

In German

  • We got for you an update on the billion dollar project of a startup campus. The project shall be called Silicon Valley of Europe and will be located in the vicinity of Frankfurt. We wait for the results of a land auction if the project will get the required area: https://www.startupradio.de/der-silicon-valley-of-europe-update/
  • We introduced our listeners to a short format “in nuce” (in brief), where we introduce our listeners to several event formats in short podcasts

In English:

Startupradio.de (our German channel) is once again listed as a need-to-know source for every entrepreneur in Germany: http://www.deutsche-startups.de/2016/08/25/5-podcasts-die-sich-jeder-gruender-anhoeren-sollte/

 

Ecosystem

Frankfurt and region making themselves heard in London http://ow.ly/O91p304CenE

Hubs

Frankfurt

Frankfurt turns into #Fintech city writes local newspaper Frankfurter Rundschau, listing 35 fintechs in the city center alone. Here is the map: https://twitter.com/GangolfSchrimpf/status/773044029323931648

Fintechs:

  • The robo advisor Ginmon raised “millions” from London based Passion Capital http://ow.ly/6gRG303uzjm
  • Frankfurt insurance startup Clark raises €13.2 million http://ow.ly/tgqI302Sbfn
  • Cloud Computing: Frankfurt is on the way to become the could computing center of Europe writes Wirtschaftswoche http://ow.ly/GV8v303uze6
  • From one of the first startup guys in Frankfurt, there is now the “Intro to the Frankfurt Tech scene” http://ow.ly/MuVs302S2k9
  • More signs of life: Relative to its population, Frankfurt is the most mentioned startup city in Germany on the Internet http://ow.ly/pIm6302nFsX

Financing for 42 ha (for americans 103 acres) innovation center & startup campus close to Frankfurt have been secured. We are waiting for the official results of the public bidding. This is associated with out interview mentioned above, but an article by Frankfurt based news paper Frankfurter Rundschau http://ow.ly/ZNGY303z8oD

 

Berlin

In Berlin, the flagship startups of Rocket Internet are not doing especially well, but this seems not to matter too much to the overall tech scene http://ow.ly/aWvz3041gCZ

Companies

Rocket Internet

Hit a rough patch in all of 2016 so far:

 

Tesla: A close Musk associate Antonio Gracias has been turned down by a bavarian battery producing sme called Sonnen, writes manager magazin. Tesla seem to have been interested taking a stake in the company http://ow.ly/XXtx3040Ln9

Here is the promised interview of Elon Musk by Y Combinator: How to Build the Future – YouTube http://ow.ly/r7Wr304CqpC

The story of Travador, they started out as a startup for travel flash sales. This did not work out, the did a pivot and developed their own booking platform for short and weekend trips. Now they are profitable http://ow.ly/TtAl304cd4E

 

Unister was a talking point all through summer. The company behind several B2C travel portals like abindenurlaub.de (like head for vacation) or flüge.de (flights) are owned by the company. The holding company itself is under receivership right now. The founder apparently wanted to avoid that and fell for a scam (so called rip deals), the founder Thomas Wagner getting a cash loan of several millions swiss francs in counterfeit money, in exchange for posting a collateral in real cash. Than to make havoc on the company absolute …. the private jet in which they transported back the money crashed and killed the jet’s crew and passengers (including Mr. Wagner) http://www.n-tv.de/wirtschaft/Unister-Chef-Wagner-ging-volles-Risiko-article18424011.html

 

Automated Vehicles / Automated Driving

“German OEMs retain their lead over US automakers when it comes to incorporating automated functions in mass produced vehicles.” writes Roland Berger in their newest research on automated vehicles

The US and Germany lead the field in terms of automated vehicle expertise.

https://www.rolandberger.com/en/Publications/pub_automated_vehicles_index_q3_2016.html

 

The Economist thiks there will be a starbucks effect in chocolate as well and is asking “Who will be the Starbucks of chocolate?” http://ow.ly/IqWD3033ZHx

 

Know-how for those with vision

Germany performing well in region innovation rankings, writes the European Commision in a publication http://ec.europa.eu/growth/node/1378_de

Peter Thiel at Stanford to Share Tips from his book “Zero to One” – YouTube http://ow.ly/BVAq302O1vC

Peter Thiel on the Global Economy, the State  Tech and Artificial Intelligence – YouTube http://ow.ly/4Cw6302O1Jg

 

Interview with Penta, the mobile banking app 🏦 for small and medium companies

In this interview we introduce our listeners to John (who will also conduct interviews in Arabic for Startupradio). Please give him a warm welcome!

John and Joe together interview our guest Luka from Penta, located in Berlin. It wants to be the digital bank interface for German and French Small and Medium Enterprises (SME). Right now they don’t have a banking license. 

In the first interview of two interviews, Luka tells us also about his previous ventures. Together with him we take a trip through his live. He tells us how he sold shoes on the streets of New York and about studying in Paris. We learn how he ended up in Berlin and how he approached the idea of Penta. Finally we talk of course about Penta, who is in the current batch of Startupbootcamp Fintech (London). (Disclaimer, Joern is a regular mentor at the SBC Fintech pitch day in Frankfurt)

In the interview Luka also talks about mondo in the UK and N26 in Berlin and his article of things he did wrong, which you can find here

In the second part of the interview we talk with Luka about raising venture capital and his experiences in Europe and the US doing so.

Startup News from Germany – Summer

House Keeping:

This is the last news podcast before the summer break. We will be back with more interviews, new formats and even live streams in September.

Our recent publications:

 

Ecosystem:

Of course, the big news in the last 6 weeks has been the Brexit. Many cities are fighting for the businesses, banks and startups leaving the UK. We collected articles for on the topic:

 

Hubs

We found news on two hubs, Frankfurt and another one, which may have escaped your sight, the lovely city of Heidelberg.

Heidelberg

is home to the 2nd oldest university in Europe (approx 400 years older than Harvard), home to a world class medical school. This also draws in biotech companies, tech startups and centers like the German Cancer research center. Don’t forget the proximity to software giant SAP and cities like Stuttgart or even Frankfurt (35 minutes by high speed train). “5 Reasons to build your startup in Heidelberg instead of Berlin (Ger)” http://ow.ly/Kc3K3022KEJ

Frankfurt

Best Startups of Frankfurt University, thanks to their incubator called Unibator (Ger) http://ow.ly/48rO301YhTO

Accelerator Frankfurt, you can apply now! As a startup in fintech, cybersecurity or a web based startup http://ow.ly/d58N3020oeO

 

Companies

Frankfurt based fintech savedroid AG closes 1mn € seed funding and releases its beta version for micro savings https://t.co/7UM2BQ4lzq
Natehelps.de is the startup Chris is talking about, while discussin the news.

 

Uber‘s 62.5 bn US$ valuation makes only sense, if it becomes a monopoly and this will fail http://ow.ly/O9bR300QvnJ
Uber also raises its first loan of $1.15 bn http://ow.ly/Skkp302b9wg

 

This is how travel portal Travelcircus had a rocket like launch (Ger) http://www.morgenpost.de/wirtschaft/karriere/article207765433/So-gelang-dem-Reiseportal-Travelcircus-der-Senkrechtstart.html?__pwh=F3mLBo0YTGmmzIFwWppiNA%3D%3D

 

Fintech superstar Number26 goes through a phase of heavy scrutinizing right now. They claimed to have “Europe’s most modern bank account” and they wanted to do everything in finance differently, yet now they took some of it back http://www.handelsblatt.com/unternehmen/banken-versicherungen/fintech-number-26-auf-dem-weg-zur-normalen-bank/13861690.html

 

And a look at the solar industry: There’s company “Sonnen“, now really getting more and more into the US market http://arstechnica.com/business/2016/07/sonnens-new-battery-for-solar-self-consumption-could-succeed-in-us/

 

We also had rumors, which turned out to be untrue: Media reported that Alipay wanted to buy a 25% stake in Munich based Wirecard payments provider https://t.co/0ANJPnCkLI 

 

Half a year is over and this may be the first time to look back. For this we use the collection of the most important venture capital investments the blog deutsche-startups.de and we only see two rocket startups in the top 11. This is quite surprising, since the rocket startups used to be the list (zalando, delivery hero, …). Times are changing?
(Article was changed since we based our news on it) http://ow.ly/q2QO302d8jf

* SoundCloud (100 mn + 32 mn US$)

* eGym (45 mn US$)

* Number26 (40 mn US$)

* Finanzcheck.de (33 mn Euro)

* Spotcap (31,5 mn Euro) – Rocket Startup

* Celonis (27,5 mn US$)

* SnapShot (25 Millionen)

* Movinga (25 mn US$)

* Thermondo (23,5 mn Euro)

* tado (20 mn Euro)

* Home24 (20 mn Euro) – Rocket Startup

 

Startup Competitions

You can now apply for the wards handed out by Google, McKinsey and Rocket https://techcrunch.com/2016/06/30/google-mckinsey-and-rocket-internet-launch-search-for-europes-best/

You can apply now to the Euro Finance Tech Award, which will be handed over at the Euro Finance Tech in November this year in Frankfurt http://www.eurofinancetech.com/blog/award2016/

 

Know-how for those with vision

Startup news from Germany – May 2016

House Keeping

We have for you an interview in German with Swiss serial entrepreneur Peter Ohnemus. He had his first company with 14, and sold companies to the likes of Thompson Reuters and Sybase. He is introducing the listeners in German to his health care startup Decadoo https://t.co/X8VbptaKHk The Interview was part of our media partnership with Health 2.0 in Barcelona this month

Roadtrip Startupradio goes #SXSW

New interview with a food startup from Frankfurt, Lizza who claims to made Pizza healthy http://ow.ly/mEAj300C4Z9

Frankfurt Entrepreneurs Award live stream and video in German, you can see it here in Youtube. Out of 37 applications, three startups were awarded prices. Number two and three taken by FinTech:

  1. Mobileeee who offers a car sharing at the airport
  2. Creditshelf, who helps their client get the best credit offers
  3. Ginmon, a new robo advisor

Finally, we have also been live with the periscope app at the Big Data Meetup here in Frankfurt, which you can replay here https://t.co/4msoy22UV0

Ecosystem

The funding to the new media formats Virtual Reality, Augmented Reality and Space startups shot up by 44%, totaling $3.5B in equity financings in 2015, over a record 254 deals writes research provider CB Insights https://t.co/t4oYrLEBi2

There is a great overview put together by the magazine t3n of the largest marketplaces for e commerce from a retailer’s perspective. If you are a startup looking to sell your product in Germany online you should pay attention https://t.co/JVggtZeGyH

A Berlin investor has the UK tech startups, that in case of a Brexit the EU funding will dry up. We remember from one of the last epidosded, that Berlin was one of the most important sources of VC in Europe http://www.businessinsider.de/a-berlin-investor-has-warned-that-a-brexit-will-starve-uk-tech-startups-of-eu-money-2016-5?r=UK&IR=T

Hubs

Once again there was a lot going on in Frankfurt recently. No other hub got so much attention here and we have just some news here for you:

Fraport, the company running the Frankfurt Airport will hold it’s first “Frankfurt Airport Innovation Challenge” http://ow.ly/ZmR6300zfU7

Frankfurt is also now a hotspot for FinTechs. Not only are there a lot of FinTech startups springing up, but also are there many, already listed here. Just two examples of the developments last month:

  • MyBuck, an African micro lender want to IPO on the Frankfurt Stock Exchange. Unfortunately the mood on Cap Markets have not been good and therefore the plans have been called off shortly before the date of listing http://ow.ly/p6lF300C2hC
  • Swiss payment service Cashcloud has already been listed in Frankfurt, but now the stock price went into free fall after there have been bad news in questionable research reports http://ow.ly/LeM6300C2n3

The RheinMain area is a hidden gem in the global gaming industry. Just some links here:

Companies

Amazon has now started the Launchpad in Germany, where the company helps startups to sell their B2C products and competes with the likes of Kickstarter https://t.co/eNSgjMhAoc

German banks backed payment service Paydirekt wants to expand in Europe, even though the penetration in the German home market is quite low. Obviously they understood that payments are a numbers game. Lets see if it is going to get traction in Germany and worry about everything else later  https://t.co/ap4aNlCqCd https://t.co/fodEwD6kg3

Rocket Internet, the news podcast is never complete without them. Last month brought more bad news for them:

Dropbox is here, we mean in Germany. They opened the first office in Hamburg last month https://t.co/Rkd5mX77O1

The Munich based media group ProSiebenSat.1, which is a very active investor in German and international Startups now completely takes over the digital fashion market place Stylight, at a valuation of 80 million euros. ProSiebenSat.1 was an investor in the company since December 2012 https://t.co/V1VhF8rW2G

We found a good wrap up of the Google I/O 2016, by The Verge, boiling down the event to just 10 minutes as a Youtube video https://t.co/wXEkE1vd4A

Berin based online magazine http://www.the-hundert.com/ put together a list of the top 100 female founders in Europe. You can download their issues on their website as a PDF.

Startup Competitions and Innovation Challenges:

Fraport, the Frankfurt based Airport Operator http://ow.ly/ZmR6300zfU7

The public German Health Insurer AOK https://t.co/rBm0foeMMA

The CODE_n16 startup competition https://t.co/9kT9zZDCdH

Knowhow for those with vision

VCs calculate valuations different from entrepreneurs. Lear here how https://t.co/UlzNIZqbRx

German overview of insurtech startups https://t.co/wbQlsq1tjg

Some would agree: Blockchain is over-hyped, but it can stil be part of the solution https://t.co/BtNEdJhAZg

Stanford Social Innovation Review proposes a new digital currency for sustainable development https://t.co/wWfhh9maUn

Bill Gates appears to think that the fintech startup bKash will revolutionize banking for the poor https://t.co/cKLUOv5qEJ

We all know bootstrapping is sexy, here are 5 startups who made it big, the sexy way https://t.co/CtZXlNoxEm

A cool article giving you an inside perspective on #Palantir, likely Silicon Valley’s most secretive company https://t.co/xjpGEyHfD6

Pratical knowledge on how you should calculate customer lifetime value? https://t.co/v86HyqqD1v

We all knew it kinda before, but now it is official: Fundraising is a numbers game https://t.co/jEpTFllc4f

TED’s secret to great public speaking, of course includes also great public pitiching https://t.co/nNzIFQ8cPW

Fintech and the Evolving Landscape – Here we get a few points for a potential industry structure https://t.co/zqSFNBpn36

Just be very careful about startup metrics, since a misunderstanding of them could cost you your job https://t.co/sGzIMoXfqT

Keep one thing always in mind, for delegation to work, it has to come with coaching https://t.co/Q6sYqmAsJo

Startup news from Germany – April 2016

Recorded on April 26th 2016

 

House Keeping:

Our new format: Roadtrip went live  http://www.startuprad.io/interviews/roadtrip-season-1-startuprad-io-goes-sxsw-intro/

 

We have two new Episodes of our Roadtrip to SXSW online

 

We also have an additional interview for you with CoModule, who produces the Android for LEV (electric scooters and bycicles), as well as an autonomous bycicle. Interview with CoModule:  http://ow.ly/4n1O89

 

 

Ecosystem

 There is right now a bit of a hangover in the VC / Funding market.

One hint is the article from CB Insights (a US bases research company) “Party’s Over: $100M+ Mega-Rounds And Unicorn Creation Slow To A Crawl  http://ow.ly/4mZx0G“.  We also found the investment behemoth US based Fidelity wrote down the value of corporate software startups discovered by Bloomberg. This includes corrections of values reflected in Fidelity accounting of startups like Dropbox, Cloudflare, Airbnb and Pinterest  https://t.co/BuuyVzSYlS. And finally Thomas Tunguz who himself is a VC at US headquartered based Redpoint Capital, writes “2016 is off to a slower start than 2015” and more about the investment trends in VC markets  https://t.co/NZ4u6Jabyw, (here is our tweet  https://t.co/8OCTBX3xtr).

 

Also Bitcoin is at an important point in its development, we could see a split in the near future. The main argument seems to be if it stays a crypto currency or if it becomes a ledger for transactions (focusing on the blockchain). One important point is the size of the transaction record, the so called block. Learn more here:

  •  Splitting of  Bitcoin (Video)  500+ Bitcoin Classic Nodes: The Fork That  Finally Could?  https://t.co/cvqXAP2x1S
  •  Why #Bitcoin’s Block Size Debate is a Proxy War – CoinDesk #Payments vs #settlement  https://t.co/tkZzt5VftY

 

 

Hubs

 

Frankfurt

Admittedly a bit late to the game, but now Frankfurt is really gaining speed in the development towards a startup hub, with a focus on FinTechs.

Just some examples:

Logistics: 

  • Amazon reportedly considering purchase of German airport Frankfurt Hahn. This airport is in the middle of Europe, even though it is 120 km away from Frankfurt   https://t.co/Vtx4b73TWf

Fintechs:

  • Deutsche bank integrates several Fintech offerings and headquarters it’s the core for the FinTech cooperation the so called “digital factory” in Frankfurt  https://t.co/RfKLcE3los
  • The German Stock Exchange (Deutsche Börse) operator of Frankfurt Stock Exchange, the largest central counterparty for derivatives in the world, DAX, Stoxx and Xetra, as well as FX platform 360T now established a FinTech hub in Frankfurt. There is a nice video now available on YouTube. It is in German, but you can still get a good impression of the very nice place:  https://www.youtube.com/watch?v=4UhWAWv2byA
  • Another month, another accelerator. This time it is someone you would have never expected: The German Book Association called Bösenverein des Deutschen Buchhandels launched yesterday the accelerator program “Content Shift” in Frankfurt. If you are a startup with ideas around books, ebooks, publishing or related fields, they would surely love to hear from you  http://ow.ly/4n69gP

 

 

Companies

 

Ecommerce in Germany

Amazon Germany generated 2015 revenues of 10,6 bn € (+19%), this is more than the complete Otto group, their biggest German competitor https://t.co/TBWczd4vju

 

Lazada / Rocket

Of course we cannot get around the Rocket / Alibaba deal. There Rocket Internet, the Berlin based and Frankfurt listed startup factory sold half its stake in Lazada, an online retailer in Southeast Asia, to China’s Alibaba. Rocket received $137 million for the stake, valuing Lazada—which launched in 2012—at $1.5 billion  https://t.co/6wYKI5gzS9 https://t.co/lnRPDcVNO4

But we also have another critical article (to keep the balance), where the blog Deutsche Startups writes, that according to their research the “proven winners” of Rocket lost one billion Euros in 2015, with a revenue of 2,4 bn Euros  https://t.co/WkaVVSqei3

An analysis about Rocket Internet by Lieferando.de co-founder Christoph Gerber paints a bad picture about Rocket Internet’s current state:  https://medium.com/@cag1412/rocket-internet-a-detailed-look-da4302e887e4#.h8sue0wnn

 

We have talked about Auctionata in the past, the German website offering auctions for fine arts and antiques, received a very bad report by its auditor KPMG reports Wirtschaftswoche. The startup has in the past received good press, and 42 mn at unknown valuation in a series C in march 2015. It was even aiming for an IPO. According to this report members of the supervisory board have been active in auctions under fake names  https://t.co/LY1vFgX93v

 

Home To Go raised $20M in Series B Funding. The startup offers a search engine for vacation rentals. New York venture capital fund Insight Venture Partners invested with existing investors DN Capital and Acton Capital Partners  https://t.co/G8sPcYXIeL https://t.co/WGenHOKeYv

 

Have you ever heard about the so called hidden champions? That are companies in Germany, who are most of the time world market leaders, but only the people in the respective industries know them. Here is a nice article with a hidden champion TeamViewer. The company has been bought in 2014 for a billion USD. The company offers software for online maintenance or assistance  https://t.co/UfslnKBvRo

 

Munich based Industry 4.0 startup Konux raised 7.5 mn € from investors from the Valley. Investors includes the likes of Andreas von Bechtoldsheimer, one of the first investors in Google. Konux develops sensors for industry usage and established already after the seed round a branch in silicon valley, which now apparently paid off  https://t.co/jlhsIOYSWI

 

Munich-based IoT startup tado raises €20 million to internationally scale its service offerings  http://www.eu-startups.com/2016/04/munich-based-iot-startup-tado-raises-e20-million-to-internationally-scale-its-service-offerings/

 

BMW Loses Core Development Team of Its i3 and i8 Electric Vehicle Line. Key executives defect to Future Mobility Corp, a Chinese startup backed by Tencent Holdings. Tencent is one of the largest internet companies in China and offers products like the popular messenger QQ, and weixin, known abroad as WeChat  https://t.co/LFwbRRkl0Y

 

Tesla

Tesla was one of the biggest stories of the last month, especially the long ques for the pre-order of the new model 3. There have been many articles written about it and we just wanted to point out a few of them:

We wanted to give you the pros and cons

German Gründerszene assumes many customers will jump ship before model 3 gets delivered, because in such a great attempt, there are usually dealys. They focus on the risks in the long term  https://t.co/AE0b4Bau94

Jason Calacanis is totally pro Tesla. He sees in a few sentences the pre-order as Tesla’s $11b+ triumph  https://t.co/cTeVuupG3Z

 

Startups in the past Frederick Rueckheim turned Popcorn into a differentiated, branded product: Cracker Jack  https://t.co/vlf7nlxyMe

  • 7th Inning Stretch Song: “Take me out to the ball game” Free advertisement for Cracker Jack. This is genius Marketing – YouTube http://ow.ly/4nebyg
  • Take Me Out to the Ball Game – Wikipedia, the free encyclopedia http://ow.ly/4nebN5

 

Events

 

Thomas: EU-Startups Conference – short intro and 15% discount for Startupradio listeners code: Startupradio

  • Learn more here: EU-Startups Conference 2016 | EU-Startups http://ow.ly/4n8NIo

 

Knowhow for those with vision