You need to be a unicorn or you need to only take angel checks. This is not complicated.
A startup doesn't need to be a unicorn
131–140 of 363 posts
Re: A startup doesn't need to be a unicorn
#132Here's a model that exists in Germany, which I like: You can present a business plan to the state's investment bank and apply for several financial aides, including: * 1.5 years of universal basic income for you plus up to 2 other people. It's a tiny amount of money, but the point is to free you up to invest your actual time an money into the business. You do not have to pay this back. * up to 20k EUR in "consulting…
It's also connected to so much bureaucracy that you almost need to hire someone for that alone, because you wont have as much time for your actual business. Founding a company in Germany is so much unnecessary paperwork its crazy. Single handedly the only reason I will never try it in my home country.
I agree that the process is unnecessarily complex, but I also think hiring someone for that would be the wise choice in most places anyway.
And even in Germany hiring someone for that would probably amount to paying 500-1000€ for the whole registration of the company instead of doing everything yourself and only paying the 100-200€ notary fees. It's not as bad as you might think.
> I will never try it in my home country.
May I ask, where would you try it? As I understand it, it's not really possible to found in a different European country while you're still living in Germany.
Re: A startup doesn't need to be a unicorn
#133Earlier quoted context omitted.
Not true. Go to your hometown administration, pay 35 Euro and leave 15 minutes later with a "Gewerbeanmeldung" which enables you to start doing business right away.
You are lying by omission. The Gewerbeanmeldung typically registers you as a sole proprietor (Einzelunternehmer) or GbR (partnership). Most tech startups need a limited liability structure like GmbH (similar to LLC) or UG. Those require notarized founding documents, minimum capital requirements (€25,000 for GmbH), and a commercial register entry (Handelsregister) The simple Gewerbeanmeldung structure is problematic f…
> Most tech startups need a limited liability structure like GmbH (similar to LLC) or UG.
Meh, do they really? Only if they want to go the VC route. But in this topic we're talking about more healthy ways to build and grow a company and for that you don't need a GmbH or GbR to start.
Re: A startup doesn't need to be a unicorn
#134I don't know much about the fund itself, but https://www.indie.vc/ seems like their whole thesis is this middle path.
Re: A startup doesn't need to be a unicorn
#135If everyone was a unicorn, wouldn't that by definition mean they weren't unicorns??
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Re: A startup doesn't need to be a unicorn
#136Earlier quoted context omitted.
You are lying by omission. The Gewerbeanmeldung typically registers you as a sole proprietor (Einzelunternehmer) or GbR (partnership). Most tech startups need a limited liability structure like GmbH (similar to LLC) or UG. Those require notarized founding documents, minimum capital requirements (€25,000 for GmbH), and a commercial register entry (Handelsregister) The simple Gewerbeanmeldung structure is problematic f…
> Most tech startups need a limited liability structure like GmbH (similar to LLC) or UG. Meh, do they really? Only if they want to go the VC route. But in this topic we're talking about more healthy ways to build and grow a company and for that you don't need a GmbH or GbR to start.
You are effectively locking yourself out of the outside investment route if you choose to do this.
Re: A startup doesn't need to be a unicorn
#137Earlier quoted context omitted.
It's also connected to so much bureaucracy that you almost need to hire someone for that alone, because you wont have as much time for your actual business. Founding a company in Germany is so much unnecessary paperwork its crazy. Single handedly the only reason I will never try it in my home country.
Not true. Go to your hometown administration, pay 35 Euro and leave 15 minutes later with a "Gewerbeanmeldung" which enables you to start doing business right away.
This might depend on where you live and the kind of business… last time I made an Unmeldung online I needed to call after a week waiting and they literally told me that in person would be solved the same day. And it was.
Re: A startup doesn't need to be a unicorn
#138Here's a model that exists in Germany, which I like: You can present a business plan to the state's investment bank and apply for several financial aides, including: * 1.5 years of universal basic income for you plus up to 2 other people. It's a tiny amount of money, but the point is to free you up to invest your actual time an money into the business. You do not have to pay this back. * up to 20k EUR in "consulting…
It's also connected to so much bureaucracy that you almost need to hire someone for that alone, because you wont have as much time for your actual business. Founding a company in Germany is so much unnecessary paperwork its crazy. Single handedly the only reason I will never try it in my home country.
I just founded in Germany.
The paperwork is … okay.
Not much more crazy than tax returns or internal accounting you need to do in any jurisdiction.
But yes, running any organization is a lot of work.
Re: A startup doesn't need to be a unicorn
#139I live in a country (Germany) that is famous for having a lot of "mittelstand". These are basically family owned businesses. Some large German companies fall under this. Aldi and LIDL for example, which are super market chains that at this point have a global presence. And some large companies (Bosch, Siemens, VW, etc.) are actually a multitude of smaller companies. Much of the German economy is smaller and bigger sp…
Yes that’s not how Germany produces OpenAI or Space X.
But it’s how you produce a lot of other things.
Re: A startup doesn't need to be a unicorn
#140We are currently fundraising - and we consider this a valid path if VCs don't bite. We have customers and no matter what - we are building something valuable. Nice post!