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Ask HN: How can I get investor intros in Berlin?

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Re: Ask HN: How can I get investor intros in Berlin?

#41

Post by nodesocket »

I've been to Berlin twice now and was just there for 2 weeks last year in August. The startup scene in Berlin is very good, with lots of really talented designers and engineers. I'd say #1 or #2 behind Stockholm in terms of producing high quality companies these days.

Unfortunately the investment scene in Berlin is still very conservative. There are some angel investment programs out of Berlin (Google for Project Flying Elephant for example). Howerver I'd echo the sentiment that VC's and even angel's in Berlin operate like typically every other European investor, ultra conservative, little to zero speculation, and more of a bank than investment firm. Can't beat the US where you'll find risk takers with gobs of extra cash willing to bet on longshots, outcasts, and pet projects.

Re: Ask HN: How can I get investor intros in Berlin?

#42

Post by wiradikusuma »

paskster wrote: post #13
canttestthis wrote: post #11

Earlier quoted context omitted.

Could you briefly explain how "social proof" applies to startups?

If you have Social Proof, you know you have it. If you are not sure, then you don't have it. Social Proof could mean: - You are a Serial Entrepreneur - A famous Business Angel invested in your company - You graduated from a University with a great Alumni Network - etc. Basically if a potential investor evaluates your Market, Traction or Business Model, then you already lost. If a potential investor invests, because h…

I'm in similar boat with the OP and with your comment I feel defeated already, but I guess it's the reality. Thanks for the bitter pill :)

Re: Ask HN: How can I get investor intros in Berlin?

#43

Post by guaka »

There are Techstars programs in Berlin, if you make it in you get 20K+100K. Plus convenient intros with numerous investors as part of the program and comfy intros to hundreds of investors afterwards. You also learn a few other things about building a scalable business.

Check http://www.techstars.com/programs/berlin-program/ and https://www.metroaccelerator.com/

Re: Ask HN: How can I get investor intros in Berlin?

#44

Post by paskster »

wiradikusuma wrote: post #42
paskster wrote: post #13

Earlier quoted context omitted.

If you have Social Proof, you know you have it. If you are not sure, then you don't have it. Social Proof could mean: - You are a Serial Entrepreneur - A famous Business Angel invested in your company - You graduated from a University with a great Alumni Network - etc. Basically if a potential investor evaluates your Market, Traction or Business Model, then you already lost. If a potential investor invests, because h…

I'm in similar boat with the OP and with your comment I feel defeated already, but I guess it's the reality. Thanks for the bitter pill :)

Don't feel defeated. Embrace the fact that you can make it on your own ;)

Re: Ask HN: How can I get investor intros in Berlin?

#45

Post by pjc50 »

idiot_stick wrote: post #29
pjc50 wrote: post #16

Earlier quoted context omitted.

I don't know why this is downvoted when it's got a valid answer in it: strangers tend not to be good for getting investments that size. Either crowdfund or get friends & family to invest.

50% of people, in the US at least, have less than $1000 in savings. They don't have $10,000 to put into your startup.

a) we're talking about Berlin

b) Yes, this is extremely unequal; yes, it's much easier to do a startup from a privileged background. It's still the most common route to launching a business.

(Especially in Europe, people use home equity or secured loans for starting businesses quite a lot)

Re: Ask HN: How can I get investor intros in Berlin?

#46

Post by softwarelimits »

softwarelimits wrote: post #18

If you would like to stay as independent as possible and keep your business in the long term, I would recommend to try with one of the currently ongoing EU investment programs - there is also one fond for smale-scale investment (like single person startups etc.) - definitely it is possible to get "free money" without high risk atm, but you must do the paperwork yourself: http://www.berlin.de/sen/europa/europa-in-berl…

"ERP-Gründerkredit Startgeld" might be what you are looking for.

https://www.kfw.de/inlandsfoerderung/Unternehmen/Gr%C3%BCnde...

Re: Ask HN: How can I get investor intros in Berlin?

#47

Post by shivram »

Here's my rule of thumb on fundraising.

1)You are an expert in building companies (you've done it before, can do it again) - this would typically be the case of repeat founders who've raised funds before

2) you are a domain expert, or have an idea which you think you are the right person to execute

For 1) as most people have pointed out things are a lot easier (relatively)

For 2) either you: a) have shown you are on the right track with customers (traction) b) prove you are the right team for the job

Again, a) makes it a bit easier to go to institutional investors. If b) the people who can be convinced of this would be the ones who know you and therefore trust you to do it (hence Friends and Family) Other option is people in the relevant industry who believe you know what you are doing (uncharitably, the Fools portion of FFFs)

From what you've told us so far, you are not seed stage. You are pre-seed as they like calling it in Europe. Institutional investors are a bad fit for this stage. Hence FFFs would be your best bet.

I would recommend accelerators, but very VERY few of them are actually worth it. But that does give you a leg up in the ecosystyem, by allowing your network to expand rapidly

Re: Ask HN: How can I get investor intros in Berlin?

#48

Post by anotheryou »

paskster wrote: post #44
wiradikusuma wrote: post #42

Earlier quoted context omitted.

I'm in similar boat with the OP and with your comment I feel defeated already, but I guess it's the reality. Thanks for the bitter pill :)

Don't feel defeated. Embrace the fact that you can make it on your own ;)

Do you think surviving through side-gigs is a valid way of bootstrapping?

Re: Ask HN: How can I get investor intros in Berlin?

#49

Post by privateprofile »

jorgemf wrote: post #9

I don't want to sound negative and I might be wrong in my assumptions but 50-75k sounds like something you can get from FFF (family, friends and fools) or supply it with your time. So the question for me is why an investor is going to put money in you if your family and friends don't do it. A good idea to approach investor is through other startups, people that already know them. You can meet startups entrepreneurs i…

This "why an investor is going to put money in you if your family and friends don't do it" question has been around for long in the startup 'hype' lingo, but I'm very curious if this has actually ever worked for founders that don't come from wealthy backgrounds, or from families with sizable savings (something that is a mirage for middle class families).

If you need 50-75K, perhaps it's better to just go for 100K€ (because things will not go as planned, as some investors will tell you) and, if you can build a solid case based on your business' performance, then reach out to angel investors, as 100K€ is an investment exactly in their ball park (unless your granny is sitting on 1M€ and can spare you 100K€).

PS: these things need proper planning, fundraising is a long process based on trust and personal impressions...so, contrary to what you read around the web, it's unlikely you'll have a lot of success (in Europe, at least) if you just show up of the blue to pitch your case and leave a business card behind, unless your revenue/orders are already solid and you have a realistic plan to multiply their volume/value.

Re: Ask HN: How can I get investor intros in Berlin?

#50

Post by neom »

philippz wrote: post #38
neom wrote: post #19

Hanging out at co-working spaces, incubators, startup meetups/tech meetups can often be a good place to start, regardless of local.

I found that a huge waste of time. Most of the time you'll meet people with the same problems as you have (not having the capacity nor the network to help you out). I would try to network directly through people and get as much warm intros as possible. If you can't get an intro to business angels, start with intros to CEOs, if you can't get that, start by climbing up the tree. If that means to start with "cold calls/…

Fair enough, I found it worked pretty well in the US and London, however they are obviously not Berlin. Thanks for sharing.
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