- The Authority on GSA Startups - The Authority on GSA Startups

Episode 335 · 3 months ago

This Month in German, Swiss, and Austrian (GSA) Startups - June 2022


Welcome to This Month in German, Swiss, and Austrian (GSA) Startups in June 2022 by My co-host is again Chris from New York. This recording is sponsored by Invest-in-Hessen and It is in radio syndication with our very own station, and our partner station IBGR.Network.

We recorded this new episode on Monday, June 27th, 2022. Keep in mind, that we will have a summer break and be back for you with another news episode on Labor Day, which is September 5th, 2022. In this episode, we will wrap up July, and August.

As always: All news not yet included here will be published in our next news episode in September.

We will also slightly change our publication schedule for this July and August, mostly going to one publication every two weeks. You can keep up to date with our Google Calendar for all publications.

Our highlights:

Startups in GSA also shedding headcount, including unicorns that recently raised money. All signs point towards them extending their runway, expecting a recession. Some startups face a challenging fundraising environment, but others like WeFox want to almost double their valuations. Also, Personio and Trade Republic raise additional funds.

In our “stay ahead of the curve” section, we have a lot of articles an entrepreneur should read to prepare for the potential downturn.

German economic minister Habeck is unveiling his new startup strategy, considering even a minimum investment in VC Funds for German insurers and pension funds.

The fast delivery startups seem to hit a wall and even formerly mighty Gorillas now explores strategic options.

Let’s talk startups:

Welcome to start up bread dot IO, your podcast and Youtube blog covering the German startup scene with News, interviews and live ef its. Hello and welcome everybody. This is Joe from start operator Oh you are listening to this month in German, Swiss and Austrian startups, also known as G S, a June edition. We are hosting this again together with Chris from New York. Hey, Chris Hydeen, I'm doing fine. Um. Yeah, things are looking nice in New York today. It's a bit great, but apart from that, summer ish is the best time, and we may tell our audience who's just listening to us, those five people a month Um, that they are very fortunate because they cannot see that we're both wearing how Wainan shirts. This has become a tradition for our do news. As we said, juniors recorded June seven. Keep in mind we will have a summer break and be back for another news episode, which is in the US Labor Day, September five. In this episode we will wrap up July and August. As always, all news not yet included here will be published in our next news episode in September. We will also slightly change our publication schedule for this July and August, mostly going to one publication every two weeks. You can keep up to date with our Google calendar for all publications, and this does not necessarily include our blog post, from which we do at least one a month. Our high lights startups injury s a also shedding head count, including UNICORNS, who recently raised money. All signs point towards them extending their runway, meaning their remaining money. Expecting a recession. Some startups face a challenge in fundraising environments, but others, like we fox, want to almost double their valuations. Also, Personia and Trade Republic raised additional funds in hours. Stay ahead of the curve. Section we have a lot of articles an entrepreneur should or could read to prepare for the potential downturn. The German Economic Minister Habeg is unveiling his new start up strategy, considering even a minimum investment in NBC funds for German insurers and pension funds, and the fast delivery startups seemed to hit the wall part of my pund pretty fast and even formally. Martigo rilla's is now expl orowing strategic options. Let's talk startups. You can tune into our radio station at Dob dot dot startup dot radio, and there's link to ree link in the show notes where you can find all options to subscribe. Our enablers invest in Hessan. This show was made possible by hescan trade and invest with the brand invest in Hessant. You can learn more about them in the link in the show notes. We also run a dedicated sub podcast with all interviews and US incorporation with them. You can learn more at TECH STARTUPS DOT SOUNDER DOT FM and our second sponsors, START UP RAVEN DOT com, the best way to identify investors and corporation partners for early stage startups. SIGN UP FOR EARLY ACCESS AT STARTUP RAVEN DOT com. As all, it's almost also a tradition that a handover for the top news to Chris Right. Yes, I madeive raven with hands. That's all right anyway. Um, yeah,...

...and I mean we're living in turbulent times. You kind of hinted at it already. Uh, we're hearing and reading a lot of news about layoffs in many, many Um startups. Um, we have just a little selection of the current bloodshed going on in listed and nonlisted at tech around the world. At the same time, Um, in the G S A market, we also see a lot of them currently. It's a big thing everywhere, but Um, obviously especially for the employees fired. Um. So one UM estimate that we found was that the global startup job cut reaches seventeen thousand people by now, Um, with some of them also in the Unicorn Berlin brands group, with ten percent of their employees. We saw that the German neo broker Unicorn Trade bleck raises two fifty million euro at a five Um Billion Valuation des by challenging the market environment for trading and fundraising. This is up from four point four billion valuation at their last fundraising in May. One and Um. But they are also joining a long list of startups to cut expectations and jobs. We saw that bit pander cuts its head count by a third Um, and we also saw that a few weeks ago, the brilliant based crypto startup newly announced to acts one in five people of its head count. Now they have to freeze withdrawals from some of their accounts since their partners, Celsius networks, did so. So this is part of the bigger turmoil in the cryptosphere right now and rocket Internet has also already cut headcount of their workforce at their Glob we found this capital formally ninety four and fifty at their flash ventures, formerly forty. So Um, yeah, Um, a lot of um again, like a lot of turbulences going on. We'll see how the market recovers with the really unsteady outlook out there, with worldwide inflation going up and the war in Ukraine still going on. So we hope that the industry recovers soon. My big hope wouldn't be that everybody be pares for a really harsh recession and then it doesn't hit. Yeah, and one industry where we specifically see Um companies being hit is the ones of like, yeah, fast delivery startups. We see that gorillas from Berlin laid off three people. They exited four markets. And they're not the only ones Gett here. Also active in Germany, shaded head count and they are also reportedly in search for other options, which may include a merger or acquisition as well. Um, we have an article about that in the show notes. What they headline? Gorilla Burns eighty million U S dollars a month and now explores options and Wade deals with delivery rivals. Um, and I mean just by my personal perception here, the number of fast delivery startups around me is really, really also going down and it gets probably at its highest, I could have ordered at five or six places. Um, they pumped a lot of energy into the market with huge discounts. But also these times are over. We also see that the instant delivery firm joker is leaving the US. It's founder, rife Vencer, is also known as the founder of Food Punda and helped soft bank with the reorganization of we work. And Joker actually is also like a curious case, just like, Um, what was the other one? I want to see get, I say, get from fridgtion no more, and frig no more. Here. It's like two blocks away from me and it's just like an abandoned space right now, and are still like the boxes of the ipads that they...

...used and apparently somehow like it's just as if it was abandoned from one minute to another. It's really wild. Um. We also, uh have related stories to that gorilla start up dream of food delivery in office rapes, falters, Altar. Fast delivery startups may have moved too fast. Those were two other headlines that we saw around this and Um, yeah, so in general this is part of a bigger picture, we guess, because we also see that the fundraising environment becomes much more challenging. Um, but some persevere. For example, Personio napped two million dollars at the eight point five billion dollar valuation as its HR for small businesses hits the big time, making one of most Europe's most valuable startups right now. And we also see that the intro text startup Wee Fox seeks funding at over UH billion of evaluation, almost doubling their previous number here and Um, others to think about all options. So so laws banker is exploring all options, from fundraising to a sale to a p fund. Um. We have additional information about that in the show notes as well. Um, and maybe one tiny little uh part of the puzzle. Plus dental burning based start up working on Mouth Guards said in March twenty one that they were looking at a Unicorn valuation. Now they exit for a mere hundred and thirty one million euros to a Swiss based company. Um, but a hundred thirty one million also sounds as if probably people might might have made a profit on that. One. I totally do believe. One hundred thirty one billion years is a lot of money for a lot of people out there, including UNI right, and I mean and for Mouth Guards as well. I don't know. How much can they cost? I have no idea. Talking about win coupter here. It's a startup they had that I have interviewed in the past. They raised forty two million US dollars in new funding and the plan expansion. They're building a unique throne that combines vertical lift off capabilities with wing assisted flight for long distances, like a v twenty two off spray. They're already working in the Pacific, unremote at Holl's and in Africa. You can learn more about them in our interview with them. And they also completely ruled out all military applications. They don't return even emails on that. And this brings the total investment tracked by US RHEINMAN VC in two so far to more than four hundred and sixty million years after the downturn on the horizon, there is fortunately an upturn at one time. Germany has a new startup strategy which is still in the making and far from finally yet, but here are some of the first hints from the German press. May Be much better fundraising environment for German startups in the future if the German Minister of economics, hardback, gets his will. He wants to make it easier for German startups to raise venture capital, and German insurers and pension funds should get a minimum VC investment quota. Right now, their investments are minimal. Just to give you an idea of what this is in the making here, the German insurers had, at the end of twenty twenty two, more than three trilling euros, which is three point one seven trilling US dollars in assets. If the quota would have been set to one percent, there would be thirty billion years additional lps for funding for vcs. The overall strategy has ten points, and he can learn more in our show notes. A little bit of a sad news. Delivery hero had to leave the docks the German leading in x.

After a regular review by dog Burza, they decided that delivery hero has to leave Germany's leading stock market in next and be replaced by biased of known for cab brand mebia. Deliver hero will also not be able to join decks for the next two years. Also, with the new rules in place, they have to be profitable in order to have a chance of joining the next again, delivery hero found a new home in Germany's MDEX, the little brother of the Docks Index. One depress housekeeping and time to Brag. You guys know that we changed our hosting service. Right, we are hurt each week in as of two seven, more than nineteen countries across the world. Actually, last weeks was nine four. Also, we passed in June two million fuse mark on Youtube. Thank you very much. We are very happy to have you as an audience. Um, we also had the English what premier on Chronos Health. Now they are in the news for the series a funding of six point five molding US dollars. You can learn more about the founder in our English World Premier Link in the show notes. Chris, you want to take the ecosystem again? Yeah, sure so. Um, in general, we were looking a bit at the at the current environment in Europe and in German language countries. UH, the European capital report found that only sixty one newly founded investors in twenty twenty one in Europe. Forty three of the M vcs, ten of them in Germany's with from Austria. Much more data is in the report. We have a pdf there. Um, in general, investors expect down rounds for most startups and scale ups. The value of US and European I P O s tumbles this year and disappearing term sheets down rounds inside venture capital's new normal. So these are all um articles and more substantial reports about the current state of events. Then we found some research about G D PR, the like, Data Protection, Um and privacy laws in Germany. Uh and I was always a bit curious because I felt probably never like they are never actually pursued those cases. But this report says that within four years of GDP are in Germany, the Authority is punished, uh, at least one thousand seventy two violations, and that's what the researchers could find out. Probably there were more, with a total of one point six billion euros and fines. If you look into it, nearly half of it came from one case from Amazon, because Amazon did not ask users explicitly enough to receive targeted ads around the Internet. Um. And yet yet I found it a fascinating number. WHATSAPP also was charged with million euros. Google had um some like two hundred million euros. So the other ones, the other violations, were charged with much, much lower fines, but still it is a thing. Then Germany's federal cartel office office opens investigations in Google maps, since the service cannot be combined with other maps. Um. So this is about the ongoing Um yeah, the ongoing fight against like the Big Internet companies. But we also decided to end a bit in this rather grim section today with some good news. They expected. Downturn is not the end of all days, and Tech Startup M and a picks up in the downturn. One example here's the recurrent recent EXP recent acquisition Zalando made, and we have more about that in the show notes. And now we look at the specific hubs and cities around Germany with a bit brighter news. And you, yes, we... Thank you, Chris Um. As always, the order of the startup is in the order we discover them. And of course, since it's my home turf, we always started with Frankfurt Lover L R V R R capital letters found the market niche, with more and more consumers replacing meat, and there's also less leather to go around now lava from damp chat raises a seed round for the plant based leather replacement. The company behind the lava material is called REVOL tech and they did not disclose the total amount of funding. The total funding is disclosed in our other news on Frankfurt. German Solar Energy Startup en viria collects twenty two point five million in the series a, which is pretty big in the current environment. While the vast majority of solar energy related projects hailing from Germany focus on residential installation and rental and maintenance services, and Vera is taking a different route, focusing instead of on foot of a tight energy solutions, including energy as a service product customized for the distinct need of businesses rights. The Article Bosh Venture Capital, Bosh v see arm, headquartered in Frankfort, Laung just new two dred ninety five million US dollar fund for deep tech startups. Keep in mind the good news for win copter and Frankfort based start up, our tangle, a U T E N G O is sold to Kaisa, Lautan based side to a G, which is in turn owned by tire twenty four. Our tangle of a SAS solution for car dealerships Chris, there are other places you fund news right, yeah, and the city of bond we saw that code intelligence raises twelve million in a series a funding Um. And in Muniche we UH learned that Finn Munich based started for Car Subscriptions, raised hundred and ten million US dollars after brutal weeks of fundraising, as they put it. Um, we have a block pause on our own website about the Munich based ebots seven, which was acquired for more than fifty million US dollars by SMP. Sex. Six hundred company, live person. And Aurora Tech, with an O in the beginning and not like Aurora, is a startup dedicated to the two detecting wildfires from orbit. Their first satellite was launched in January with the space x rocket and now the satellite and it's ai detected the first wildfire. So Um, good luck to that purpose. In Hanover, the German based tennis startup wingfield raised four million euros in venture capital. And then Braunschwike, a little bit to the south of Hanover, startup o copy orbits raised five point five million euros seed funding to protect satellites from collision with space debris. Probably they can debris. Probably they can start negotiations with Aurora attack so that the wildfires can still be found. and Um. In Austria, we see that ACCENTIA bought a bank data center in Tyrol, Austria, called A R Z. They gained six hundred new employees and want to use it to build up further. and Um. We were wondering if you know Vienna based Anti Robin Hood Fintech Fruits F R O o t s. They just raised two point five million to encourage long term investments. Um. Moving on to Switzerland, where we see that the Mar Kite, a Swiss crowdfunding platform, Um, is taking an unusual route to fundraising. Within a few days there used six point four million Swiss francs by shelling selling shares to four thousand four hundred backers. We may also be able... to pronounce it as we make it. Yeah, we make it, but it's not my problem. If they name it problematically, they have the problem yet. So anyway. So the crowdfunding market in Switzerland in general approaches won billions. Was Frank. It has breached seven two million in twenty twenty one. So it's a good market environment for we make it or, as we like to call it, Mr Cut. Swiss prop tech start up Fox stone, raised ten millions. Was Frank's venture capital to invest in their real estate platform and the travel tech start up chain for travel with the digit four raised four point five million US dollars to build their blood chain solution. And Souk in Switzerland, a little town there, UM, there. This is the hometown of cloud pay, a g. They raised three million Swiss funds to accelerate their growths. which wraps up the hub section and we move on to General News, Tech News, companies. Um, so a little bit of everything now, starting with investors, where the mood is going down a bit again because more bad news for one of Germany's largest investors. Were that Tiger Globals, Tiger Global Plunge Fif and that prompted a fee cut and a redemption plan. there. So, UM, hopefully they can get um back up and you can also meet get Quinn, a social network for investors from Berlin. They scored fifteen million dollars to expand beyond the dark region. Dach is the German equivalent of G S A, meaning Deutschland, Austria, Schwitz and Um, I take a deep breath and hand it over to you to talk about Fintechs. Great Um we have. We start out with two articles on the same topic. Founders of INTA CHALLENGER BANKS STARTED PILO B two B crypto startup now pile raise two point eight million. Years in precede funding led by Artemis and Barckley's female innovators. Lab Investors also include and twenty six C O and soccer player Mario Gutsa. And there's another article on the same focusing on what they do, Crypto API and Um, telling it was for Um Crypto API. Berlin based Financial Management Startup Air Bank, which offers financial management for S M E S, raises twenty million euros. Germany based investment API upwest scores forty two million, and this by Klana being in crisis mode by now. Pay later. Fintech Mondu, M O N Du from Germany races forty three million, you ass dollars in series a funding. Investors here include Peter Tiel's Vala ventures, Jones Lang Lasalle. I do believe there are a lot of buildings they managed in in New York. Re Chris. Yeah, yeah, they are Um. Their investment arm invests in Berlin based PROP TECH ECO works in some point seven million years investment ground amongst other investors. I was just wondering you guys all saw the focus on API startups. Right. Um, new VC funds, project, new VC funds. Project Adventures raises their largest fund to date, with three hundred seventy five million you as dollars. Also keep in mind the fundraising of Bosh VC and Berlin based climate tech. VC World Fund just added WC as an anchor and LP to its three...

...hundred sixty five million funds. and Um, there are. We also found an article with the seventeen slight pitch tack they used to land the deal. Chris, you've got some more fundraising. He right. Yeah, very few selected VC fundings that we found. Um, and I'm gonna like it's going to be like a rapid fire around. Coach had raises two hundred million dollars, led by Sofina Soft Bank Vision Fund to just eight months after their last funding. But despite the large funding, they are not a Unicorn yet. Silicon Valley Bank approves a hundred million US dollars for the Berlin based recap platform. Ohmeal tops up with eighty million dollars as travel bounces back the capital race. will be used by the Berlin based startup to reinitiate global expansion activities, including M and eight deals and new strategic partnerships. Um, Berlin's distribution a B two B marketplace rakes in thirty million euros to make ground transportation accessible online, and Berlin based ECOLYTIC gets thirteen point five millillion euros to empower more sustainable consumer habits. Some startups did not make it, though. I don't know. Today I feel, as a fund, like the bearer of bad news all the time. A German fast delivery service for pharmacies have had to file for insolvency. Operations have already ceased. attack. A Grande raised twelve million euros and venture capital in the summer of twenty one, but now has to file for insolvency. And the retirement saving spintag one chick has to file for insolvency. They wanted to offer the savings with the cash back scheme and had to make the filing due to a busted funding round. Other News, other news exactly going a little bit bad. Oh Crisp, there's the siren and you're of the hook for Bagel today. Um, all other news or dash closest shop in Germany. Only the plant will be retained by vault here, like the W O l team hinted already in the top news when we talked about M and a activity picking up sorlando acquires majority stake in highest snobber tea, bringing together content and commerce. Highest, highst high no, high snow, bioty, high snow. So inside my head I'm always reading a high SNOO bioty as a high society. Okay, it's a fashion and lifestyle media brand founded two thousand and five currently generates sixty millions dollars in global revenue and they're based in Berlin. Chris, you see, you're another only one with problems in the names. Um and guys, you know Auto Doc. It's a Berlin based online market place for car spare parts. It is completely owned by its three original founders and generates one billion euros in an new revenues. We also found a list of the ten most innovative food waste startups around the world, and that includes Chucko APP from Berlin. Chris, you get a little bit more off. Stay ahead of the curve. Yeah, Um, so, I mean it's just a bit of of news that should give you some inspiration or some ideas of the broader pictures, of the broader picture. Um So, for example, as Fintech valuations fail, even stripe isn't immune to a changing market. That is something we found interesting. We found an article about venture capitalists staring pay which are is tempting fate. We see that the q two software as a service multiples have collapsed. Um Our startup should handle the downturn. There's a bit more of background there. At Tech crunch you can read sequires news presentations to portfolio companies on how to survive the three...

...years, but also a tech on article about how they're still good news out there for software startups and we wish you all the best of luck until we're as long as we're a way. So please all make it through July and August so that we have something more positive to talk about and to talk about you when we're back on September five with our summer wrap up and hopefully more optimistic. Just don't start a fast delivery startup in between. Just that's that's our recommendation. That would be awesome and there's still good news out there for the software startups. So we end on the high tone. Everything's fine, Chris, who's a pleasure as always working with you. Yes, high five to a million angels. Bye, bye, bye, bye. That's all. Folks find more news streams, events at interviews at www. Let's start up read dot hile. Remember, sharing is caring sus.

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