“As a good team, you currently get secure capital”

The years 2021 and 2022 were record years for Austria’s start-up landscape. At least if you look at the financing that has taken place. After that, the situation deteriorated, and currently “the trend ‘back to the old normal’ is being observed all over the world,” says the current start-up barometer from the consulting firm EY. In other words: things are settling down to the level that was found before the boom.

The barometer’s conclusion: “The situation is still challenging for the Austrian start-up scene. There is a lot of reluctance to finance growth.” But – and this is where the story takes on a more positive tone – “there are still bright spots.” EY includes the “long-term development of the ecosystem” in this. In addition, many start-ups have developed their business models “more towards profitability and resilience” in the last year in particular.

The “obligation” of start-ups

“A small bubble has burst, yes. “But the situation has calmed down again,” says Jasper Ettema. Having grown up in the Netherlands, Ettema is now considered an intimate connoisseur of the Austrian – and especially the Styrian – start-up scene. The busy entrepreneur founded three companies himself, and today the author of “1M€ Pitching” tours the country to teach founders about the topic of financing. At the Graz start-up center Unicorn, Ettema was recently a central cog in the first “Fundraising Summer School”.

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For a week, specialists worked together with ten start-ups to revise corporate strategies and make concrete preparations for financing rounds. Start-ups have a certain “obligation” when it comes to acquiring capital from investors, says Unicorn boss Bernhard Weber. Rather, “professionalization is necessary”. The aim is to contribute to this with formats such as the Summer School.

Einhorn Managing Director Bernhard Weber

© Klz/stefan Pajman

“How much money do I actually need?”

“Start-ups need a certain amount of self-reflection,” says financing expert Ettema. The key questions are: “Where am I?” How much money do I actually need and what sources are there for it?” The basis for a successful start-up is not only a good business idea, but also the acquisition of entrepreneurial “founding skills,” as Jasper Ettema calls it.

A key experience of the last few days and working with a wide variety of start-ups is that there is no one path to investment. A lot depends on factors such as “industry, team, strategy and timing”.

Investor Laura Raggl (ROI Ventures)

© David Visnjic

“We invest in good teams”

This leads us directly to Laura Raggl and thus from the start-ups to the investor landscape. Together with other investors, Raggl launched ROI Ventures in July 2022, and today there are more than 15 start-ups in the portfolio. “We invest in talent, in good teams,” says the investor. Ideally, the formation consists of “two to three founders who work full-time for the start-up,” explains Raggl. It is also “very important” that “there is a technical founder in the team.” “Otherwise we don’t invest.”

When does ROI Ventures choose the right time for the first investment? Laura Raggl: “The start-up should be six months to a year old and ideally have its first customers.” How would Raggl describe the big picture at the moment? There is “no financing hype,” but the situation in the summer is not miserable either. Investor Raggl: “As a good team, you are sure to get financing at the moment.” And follow-up financing as well.”