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Fastbill’s Exit to Canada-Based Unicorn FreshBooks
They told us: Local heroes stay on boardRené Maudrich, MD Germany FreshBooks
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The Enabler
This interview was made possible by Hessen Trade and Invest with their brand Invest-in-Hessen. You can learn more about them here (https://www.invest-in-hessen.com/). We also run a dedicated sub-podcast with all interviews and news in cooperation with them. Find it all here:
We started serveral early SaaS Platforms and Fastbill was one of them. We just solved our problems at the time.René Maudrich, MD Germany FreshBooks
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We have been one of the SaaS pioneers here in Germany.René Maudrich, MD Germany FreshBooks
The Founder
In this interview, we talk to one of the most experienced fintech founders in the greater Frankfurt area. René Maudrich (https://www.linkedin.com/in/renemaudrich/) is the CEO and founder of Frankfurt-based accounting and invoicing fintech Fastbill. They have been bought by Toronto, Canada-based, fintech unicorn Freshbooks (https://www.freshbooks.com/). He now holds the position of managing director of FreshBooks Germany.
We received almost 700.000 euros research funding by Hessen AgenturRené Maudrich, MD Germany FreshBooks
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We became a top 3 provider in GSA (Germany, Switzerland and Austria), but we also have clients in 13 other countries.René Maudrich, MD Germany FreshBooks
The Startup
Fastbill (https://www.fastbill.com/) was one of the early fintech startups, that have been around, before fintech was a thing. They help small companies and freelancers with their invoicing and accounting. They are a top 3 provider for this kind of software in Germany. You can learn more about them here:
Also, Mario (https://www.linkedin.com/in/mahachemer/), the CTO of Fastbill has been a frequent guest. Mario is also part of the frequent crew of our annual fintech review. You can learn more about the company, him, and René in our interviews linked below.
We bootstrapped for six years before we took VC money. That was a bit too late. I would recommend it later.René Maudrich, MD Germany FreshBooks
The Exit
FreshBooks already knew Fastbill from events. FreshBooks was interested in purchasing a stake in Fastbill with their next investment round. During the conversation, they decided on an outright takeover. FreshBooks now owns all equity in Fastbill and the core team with René, Mario and Benjamin stay on board. All former Fastbill shareholders are now FreshBooks shareholders.
The Fastbill team is not permitted to speak about the transaction price. We can make estimates about the price range:
In 2019 they had approx. 2.5 mn Euros revenue (according to estimates in several databases). Assuming a growth to 3 or even 5 mn Euros annualized revenue in 2021 one can estimate the range of the transaction volume with normal multiples from 45 mn Euros at the low end to 110 mn € at the higher end, adding an “earn-out clause” of approx. 10% over the next few years.
The Video Interview is set to go live on Thursday, November 18th, at 17.00 CET
The Audio Interview Podcast
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Here are our fintech reviews:
German Accelerator
Fastbill looked at the US market by participating in the German Accelerator Program. We interviewed the CEO of the German Accelerator in New York and a few startups. You can learn more here:
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The Interviewer
This interview was conducted by Jörn “Joe” Menninger, startup scout, founder, and host of Startuprad.io. Reach out to him:
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Automated Transcript
00:00:00.000 → 00:00:19.600Music.
00:00:19.447 → 00:00:27.417Hello and welcome everybody this is Joe from startuprad.io your startup podcast in YouTube blog from Germany,
00:00:27.504 → 00:00:34.754today I have another interview together with other sponsor invest in hessen Via hasn’t trade investment,
00:00:34.850 → 00:00:43.288thank you for the support and we are talking to Renee hey hi Dean Hey Joe nice to meet you thanks for the invitation,
00:00:43.456 → 00:00:54.208totally my pleasure we have to tell our audience it’s not the first time that you’re in one of my podcasts are vividly remember back in 2012
00:00:54.133 → 00:00:58.745nine years ago I was starting a German
00:00:58.643 → 00:01:09.782only podcast together with a co-host and you’ve been our first guest and nobody had a clue how a podcast through the work and fortunately the audio never got published
00:01:09.698 → 00:01:16.606I remember that episode and it was really a fun episode and we could all learn from that and.
00:01:16.846 → 00:01:21.278Yeah it’s can really imagine that it’s already so long ago.
00:01:22.085 → 00:01:32.990Yeah it’s incredible end our audience who’s following us for quite some time they may know your sitio Mario who has been a guest in the past I think
00:01:32.897 → 00:01:41.830two three four times and he’s also a member of The Usual Suspects for the annual fintech review which will be published again this year,
00:01:41.899 → 00:01:49.950on the 25th of December so you got something to here during our Christmas and New Year’s break sorry
00:01:49.875 → 00:01:58.700all that advertisement got out of the way so you guys are from fast build you are the founder of fast Bill and
00:01:58.688 → 00:02:11.141I was looking at it and you guys found it fast Bill back in 2007 before even fin Tech wizard thing and right now you’re one of the top three providers of
00:02:11.076 → 00:02:16.075invoicing and accounting software for small Enterprises,
00:02:16.180 → 00:02:21.836and Freelancers how did this get started and how did you become a top three provider there,
00:02:22.040 → 00:02:27.625we met at a top three provider in Germany right.
00:02:27.856 → 00:02:37.599Yeah yeah and this is a hard enough to get to so yeah I’m actually 2007 was the time when we,
00:02:37.749 → 00:02:49.878when we didn’t do any software specific software company I was running a like an IT agency and had a good network with other guys,
00:02:50.100 → 00:03:01.536there’s wanted to create nice software for clients and we we found out that there is a new trend coming up which is which was called online,00:03:01.749 → 00:03:04.570portals or online services.
00:03:04.864 → 00:03:18.514And we do that at this time we started several project at once so like shopping platform like early SAS platforms and faster was one of them.
00:03:18.764 → 00:03:25.851Where we we put our own pains and problems that we had with our companies.
00:03:26.271 → 00:03:35.907Into a solution that we really needed ourselves and this was back then it was something we just need to track time and Bill the,
00:03:36.129 → 00:03:49.086the the time to clients so this was something that was really very painful because it was all based on like word excel and like not mobile not current like collaborated with team members,
00:03:49.272 → 00:03:54.109so this was something we wanted to build but it took us another four years from then,
00:03:54.314 → 00:04:02.031to really start the company fast Builder like the Pasta Company so we started off pretty early with I.
00:04:02.407 → 00:04:09.017Called ourselves always the Pioneers one of the pioneers of SAS in Germany in 2011 we.
00:04:09.401 → 00:04:15.832Christian and me we quit our jobs and did full-time fastball product development.
00:04:16.108 → 00:04:27.355So and this was something pretty new and there was no real like I mean beside Angel Investments we got there was no real investment opportunity so we needed to be like,
00:04:27.550 → 00:04:37.410bootstrap company for several years as well as many others that started during the years but I mean I think something that made us very specialist,
00:04:37.596 → 00:04:48.870that we always had a very close connection to customers and listen listen to their needs and really talk to them very closely and try to understand what they’re really real problem was.
00:04:49.182 → 00:04:51.427Um and yeah we.
00:04:51.703 → 00:05:00.663We managed to grow like constantly and did good products we have two products right now one is the,
00:05:00.822 → 00:05:06.677invoicing accounting platform for small businesses and solopreneurs which is very successful,
00:05:06.818 → 00:05:14.158and we have a another product that is doing subscription billing for subscription businesses so this is also something we we did on the way.
00:05:14.776 → 00:05:19.487Um yeah today I’d say that besides.
00:05:19.934 → 00:05:27.463Like to other players we are we are one of the biggest names in the german-speaking market Germany Austria Switzerland.
00:05:27.910 → 00:05:33.089We do have customers and 13 other European countries.
00:05:33.510 → 00:05:41.930Although since we have an english-language version although we did not really focus on expend in those markets.
00:05:42.188 → 00:05:47.061So you see it’s a big demand it’s still a big problem in the market is still very.
00:05:47.292 → 00:05:55.082After 10 years it’s still at the beginning there are millions of possible customers and only a few of them have a solution like fast.
00:05:57.303 → 00:06:10.152And I remember that you at least tap your toes a little bit into Brazil as well as took a serious look into the United States but,
00:06:10.167 → 00:06:14.293this this was no Venture you seriously started right.
00:06:15.316 → 00:06:22.386Yeah we got the opportunity to to look into like the US market with a German accelerator back then.
00:06:22.689 → 00:06:26.500And also to look into the Brazil Market.
00:06:26.803 → 00:06:33.423Because one of our like team members moved to Brazil and started to research.
00:06:33.753 → 00:06:43.559And I mean the US market was pretty quick it was clear that this is too much of a of an investment for a small company like ours.
00:06:43.925 → 00:06:51.580But the Brazil was very interesting the resume Market because the need of electronic invoicing was.
00:06:51.883 → 00:07:02.635Growing pretty rapidly and they just introduced ways how to like electronically do invoicing and get get paid better.
00:07:03.010 → 00:07:11.637So we get good good traction and then needed to decide if we want to continue this path.
00:07:11.949 → 00:07:22.440And as I said as a small company without any Venture funding at this point in time it wasn’t really doable to approach such a big Market without spending a lot of money and.
00:07:22.707 → 00:07:28.111Going down there as a as a as a Founder to do that first hand,
00:07:28.216 → 00:07:39.634so we had to decide to to stop it and Brazil even if it was very interesting but you weren’t able to focus on two markets at this point in time so yeah it was a great,
00:07:39.721 → 00:07:47.817approach and maybe I will like repeat this kind of market research with a in the future again but,
00:07:48.021 → 00:07:52.543I’m for us it wasn’t wasn’t early enough to to go into totally different Market.
00:07:54.224 → 00:07:59.925Yeah it’s always a actually when you’re small
00:07:59.814 → 00:08:11.520in your home country and you expand to another country you basically risking the complete company that’s that’s always a big gamble I can understand why you didn’t do that
00:08:11.400 → 00:08:14.059later I was it like in
00:08:14.038 → 00:08:27.1842018 2019 fintech was really getting hot and like Finance and Accounting software and then erased actually VC money from Finland
00:08:27.055 → 00:08:31.622and Campari on which is a subsidiary of kfw.
00:08:32.511 → 00:08:40.075Correct correct yeah it was some from to those today’s perspective it was really a little bit too long.
00:08:40.379 → 00:08:46.872To doing like bootstrapping mode and then raising Venture Capital it was.
00:08:47.229 → 00:08:53.759Something that when we when we found out that this is getting more trendy more hot the topic.
00:08:54.080 → 00:09:02.212Um we were like talking to VC’s right away and the interest was pretty overwhelming.
00:09:03.181 → 00:09:12.286But I mean after six years of bootstrapping you you really had to to manage a lot of real estate in the company as I was called like products and so on,
00:09:12.418 → 00:09:22.395so it’s something I would recommend doing earlier if possible but in our case it is I mean we could we could do it we could do the next step,
00:09:22.617 → 00:09:27.391and and like raised a couple of million euros.
00:09:27.641 → 00:09:34.485To to grow the team to grow the company and to scale marketing channels and so on,
00:09:34.590 → 00:09:47.196so it was was a great opportunity and I mean I brought us to the place where we are right now so I think it was it was a good step to go and the partners were very good as well they were like.
00:09:47.608 → 00:09:56.325Long-term oriented they knew how like counting the accounting work world runs,
00:09:56.484 → 00:10:04.580so it’s not it’s not comparable to shoot online shoe market for example it’s something that is taking much more like strategic approaches,
00:10:04.766 → 00:10:14.401um higher it has higher customer retention but also you need to convince the people to give your their financial data they are.
00:10:15.425 → 00:10:21.450That their existence existence is connected to so it’s it’s something.
00:10:21.969 → 00:10:29.453Sometimes you need to have an understanding of the investors that this is a real yeah,
00:10:29.468 → 00:10:40.382deep shit father for the customer so it’s not like the typical VC they tell you okay you can do that in one year if I give you
00:10:40.244 → 00:10:48.079five million let’s try it in three in three months and I give you 15 million who not that kind of easy right
00:10:48.040 → 00:10:59.061right I mean for us it was very important to get a to get connections to to for example the bank and Industry out of the out of the VC Network as well,
00:10:59.239 → 00:11:04.049it wasn’t just the money that we wanted to get.
00:11:04.307 → 00:11:12.952It was also I mean I would thesis work for example partnering with big banks will bring this customers for a lower price.
00:11:13.228 → 00:11:17.606Um so we try to get a VC out of the fin fin tech industry.
00:11:17.918 → 00:11:29.309And also we had some I mean you never know how how scalable each marketing channel is so you need to to find people that really,
00:11:29.513 → 00:11:34.485believe in in like going together for a longer time.
00:11:34.816 → 00:11:48.187And this is what we definitely found here it was they always wanted to understand why things happen and how the business model is so this is something I really like like just part partly Financial perspective.
00:11:49.012 → 00:12:03.707Yeah that that’s also one of the lessons we get on a very regular basis here not all investors are alike even though the money is in most likely we are talking here because you guys got bought.
00:12:03.938 → 00:12:04.904Completely,
00:12:04.991 → 00:12:14.861all Equity by freshbooks which is also I do believe in the area of accounting a unicorn based in Canada in Toronto and
00:12:14.840 → 00:12:23.737they already bought a fintech in Mexico back in 2020 and now they expanding to Europe in 2021 how.
00:12:23.977 → 00:12:26.068This deal happen because,
00:12:26.110 → 00:12:34.999it’s time of Corona in a not supposing you you just flew over to Toronto and knocked on the door hey guys how’s it going,
00:12:35.086 → 00:12:47.629yeah it was a it was a crazy crazy year or one and a half years looking from now so it was definitely something that wasn’t wasn’t completely planned this way from day one.
00:12:47.887 → 00:12:56.334We were definitely like thinking pretty openly how to how to grow the company in the like one year ago.
00:12:56.709 → 00:13:05.957And like we were like already a profitable company so we were not in a rush and away so but we thought okay so the competition is not,
00:13:06.171 → 00:13:15.023it’s not sleeping they know what they do they are like do very good like business so,
00:13:15.029 → 00:13:21.198how can we leverage our long experience in our great great talent and great product even more.
00:13:21.763 → 00:13:33.612Besides the profitable growth and the the challenge we established and I thought maybe it’s something that that is based on a strategic partnership.
00:13:33.925 → 00:13:43.857And as I already said we always believed in some kind of strategic Partnerships for example with banks or with insurance companies or with others.
00:13:44.259 → 00:13:47.890And I thought maybe it is the right time to think about,
00:13:48.103 → 00:13:58.126like changing something in the shareholder structure so we have somebody on board that really can can push us even more with more resources,
00:13:58.312 → 00:14:05.895and more not only Financial Resources but also Manpower and and structure and whatever,
00:14:06.063 → 00:14:16.859so we definitely did we did a first of Market sounding finding out if people are really a value what we have and couldn’t can bring extra value to us.
00:14:17.207 → 00:14:22.756So we had a lot of talks about without it with possible partners and we decided that.
00:14:23.464 → 00:14:32.496We definitely need some some partner that is there’s no same business like the accounting business and is doing like playing the global game.
00:14:33.150 → 00:14:40.634And we need new freshbooks the freshbooks team already at this point of time we met them in Vancouver at a,
00:14:40.766 → 00:14:49.907at a congress couple of years ago and we’ve already talked to to Matt who’s SVP and corporate development at Facebook,
00:14:50.057 → 00:14:55.317and Mike the founder of fresh books we already knew had to connection and we already.
00:14:55.998 → 00:15:07.371They already asked us if you do something like a like fundraising just let us know so yeah we talked to them and we found out that this was a perfect time.
00:15:07.746 → 00:15:13.448Like talking about this kind of partnership because fresh cook just started to,
00:15:13.562 → 00:15:25.700to to roll out their Global expansion and we really were looking for powerful like lever for our for potential,
00:15:25.769 → 00:15:35.467so we had really good talks from day one and we found that the the culture of the strategy the values are really matching up perfectly,
00:15:35.653 → 00:15:44.496so it was very very clear that we want to do that and I mean for me it wasn’t necessary to sell every share,
00:15:44.710 → 00:15:54.291of the company but I mean this was something fresh books was what’s the part of their strategy so we decided on doing that and now,
00:15:54.369 → 00:15:58.450we are also like received a part of the,
00:15:58.618 → 00:16:05.229of the like acquisition amount in freshbooks equity so we continue.
00:16:06.144 → 00:16:11.575We’re still on bought intent end.
00:16:12.310 → 00:16:23.890We can profit by the way the value increase over the whole company and since they are the Unicorn already this is very interesting so that means it’s most likely you,
00:16:23.995 → 00:16:31.560Mario which our audience already knows and Benjamin you guys you three guys get some equity in freshbooks and stay in board,
00:16:31.737 → 00:16:37.295we definitely stay on board this was the main like thing that.
00:16:38.129 → 00:16:45.343They needed us to to approve and we definitely never said we want to go out.
00:16:45.655 → 00:16:54.498So this match so we wanted to to do to follow the vision still and don’t like jump off in any way.
00:16:55.098 → 00:17:00.520So we wanted to prove to be part of the success the overall success and.
00:17:00.761 → 00:17:14.357We do have the other shareholders that also saw sold their Shares are also now part of the shareholders of fresh books so we have this operational team as you said Mario Benjamin and me.
00:17:14.624 → 00:17:22.720And we have the ex-husband shareholders who are now like exited the company and also got a couple of shares.
00:17:25.391 → 00:17:34.612I know because we discussed it before you forbidden from talking about the price tag but according to my understanding
00:17:34.465 → 00:17:44.433you always say you have mid 7-digit Revenue you have to publish your balance sheet but that doesn’t include a p&l so,
00:17:44.440 → 00:17:51.923don’t have anything other than assuming five Millions with normal multiples from 15 to 20 times
00:17:51.732 → 00:18:01.376that quiz station prize cash and Equity together should be somewhere around 75 to 100 million is that approximately correct,
00:18:01.598 → 00:18:08.839I would really love to give me more like say something like yes ish yes or no or maybe.
00:18:09.655 → 00:18:21.856Like as part of the deal we decided not to disclose any financials because there is a expansion strategy going on in this would really make that gives you some kind of disadvantages.
00:18:22.195 → 00:18:32.731Some financials would be would be public for now I just can say people can calculate what they think what is real and this is where I really.
00:18:33.079 → 00:18:40.149Thanks for thanks for understanding that we don’t disclose that.
00:18:41.055 → 00:18:54.309When we talked before you your because we’re now looking a little bit about the future and he said something very nice I assume it’s from freshbooks they they told you Local Hero stay on board
00:18:54.288 → 00:19:03.041yeah I mean maybe to explain a bit why for freshbooks this is such a good deal.
00:19:03.354 → 00:19:09.388And this also like get gives gives a good.
00:19:09.646 → 00:19:14.348Helps us with getting a good valuation we are.
00:19:14.741 → 00:19:24.494As I said the German Market in the county is not very easy so we have millions of millions of small companies here but still after 10 years now.
00:19:25.022 → 00:19:35.017I would consider just like all of the players with including us we we coverage let’s say I don’t know.
00:19:35.978 → 00:19:40.095Maybe not even 10% of the market so.
00:19:40.353 → 00:19:50.339It’s really hard to to create a product that is really fitting the needs and matching all the the.
00:19:51.309 → 00:20:02.582Like the boundaries we have in Germany like Bank connection accountants software and so on so for a company that is like.
00:20:03.030 → 00:20:03.645From,
00:20:03.822 → 00:20:13.232especially from North America they don’t really see them sells able to just growing organically in markets,
00:20:13.319 → 00:20:21.928like Germany but also like other European country have France and it looks scandic countries so they,
00:20:22.096 → 00:20:26.627they can just use their product and and and sell it in German.
00:20:26.958 → 00:20:37.241So it’s very important for such a company to find the Local Heroes that know how it’s going on here how you can really make customers happy and,
00:20:37.364 → 00:20:45.100bring the technology that really works since years along with into the deal so this is what what they’re interested,
00:20:45.313 → 00:20:50.168was find somebody who can really extend there.
00:20:50.778 → 00:20:55.525Growth and their success into markets they would not approach on their own.
00:20:55.801 → 00:21:04.437And this is why it was important for us to be very independent to work what we what we know will be successful to do like.
00:21:05.001 → 00:21:14.204Our autonomous decisions and also for freshbooks it was very important that we do that that we stay here and that we are incentivized that we are.
00:21:23.060 → 00:21:38.988Fortunately you got you got bought by a Canadian company I’ve once hurt Canadians being described as the polite version of American so that should be pretty good for company culture as you already said there are some expansion plans
00:21:38.814 → 00:21:42.157there and.
00:21:42.415 → 00:21:50.321Many things are different for companies either based in the US Canada,
00:21:50.535 → 00:21:58.640or even France for that because PCS to is something pretty similar there’s data protection with which is similar,
00:21:58.844 → 00:22:07.768taxing and text regulations oh my God my Tony is just rolling back to thinking about that here in Germany
00:22:07.603 → 00:22:14.853I had to take one course in taxation back in college here in Germany and
00:22:14.706 → 00:22:18.823I vividly remember the last row in the script of the professor
00:22:18.613 → 00:22:30.832good tax advisors in Germany are very lonely people do you have anything to add there and how you go in to help freshbooks to expand T and Europe.
00:22:31.333 → 00:22:35.297I mean we definitely.
00:22:36.086 → 00:22:47.765You can definitely say there are some some European specific boundaries and rules that are that are like making Europe special in comparison to the.
00:22:48.293 → 00:22:57.793North America Australia or even Asia about Europe we do have some routes that are pretty similar like.
00:22:58.052 → 00:23:04.581For example you text v80 rules or like.
00:23:05.497 → 00:23:13.457The invoicing for example so those are the things that really may help us to to look into different markets.
00:23:13.788 → 00:23:22.901Starting off from Germany When I Look to the Italian e-invoicing this is very very understandable and the Seven that were from our.
00:23:23.294 → 00:23:31.300But for North America it’s it’s very different so this is something that really makes a that unifies some of the countries here,
00:23:31.477 → 00:23:39.033in addition to that we do have more complications more specific things in Germany as you just mentioned tax regulations.
00:23:39.831 → 00:23:44.659When I think about tax regulations is also The Gatekeepers that are involved.
00:23:45.899 → 00:23:58.163Usually in Germany every company has an accountant or an accountant Tax Advisor what accountants are really doing the work.
00:23:58.466 → 00:24:12.269Um we don’t have such a big culture of bookkeepers that we do your books and help you out you need to pay the accountant office which is not very easy because those guys are really doing,
00:24:12.338 → 00:24:16.509bike hard texts work and they are not like.
00:24:17.164 → 00:24:26.691Sitting in your office and they are not cheap and so on so you need to bridge some gap between yourself as a small.
00:24:27.003 → 00:24:32.488Company or as a like fresh founder who has no idea about accounting about tax rules.
00:24:32.900 → 00:24:37.467And professional that is really taking 80 Euros an hour to do that,
00:24:37.689 → 00:24:50.538but you don’t need to you don’t know what he is she or he is doing and why and so on so there’s a there’s a big gap and then there’s the software there is with that have is a big.
00:24:50.796 → 00:25:04.077Yeah I think 80% or 90% of the market is covered by dot if so you need to access this ecosystem as well which is not always easy we are partnering with dart of students five years or so now.
00:25:04.354 → 00:25:16.950Um and this is this is very special to understand they were not always good documentation about that if interfaces so it’s something you need to know in PSD to is the next big thing,
00:25:17.020 → 00:25:22.613how can I access bank information that’s a totally different game than in the US or in Canada.
00:25:23.033 → 00:25:33.578So yeah I would say it’s it’s very special and when I started the company I was very startup minded like move fast break things,
00:25:33.809 → 00:25:41.455but now it’s a different thing because I always think okay you need to have the correct.
00:25:42.163 → 00:25:53.068Contacts you need to talk to the right people you need to you need to do it right accounting is something that cannot be done just 80% it needs to be done hundred percent so this is something we learned on the way here.
00:25:54.217 → 00:26:05.788We may just one detail we make plain to everybody who’s not from Germany would dap f is that is your means to exchange tax data more or less.
00:26:06.136 → 00:26:17.581It’s a dream where that hex advisors use for their daily business and we need to put data into their system that’s right so this is the interface that everybody has to connect to.
00:26:17.884 → 00:26:32.272Oh that is very very exciting and interface which is already boring for taxes now I think we reached a low Point let’s change topics and talk a little bit about the local ecosystem since this,
00:26:32.333 → 00:26:37.611sponsored by investing hessen and first thought I had about this,
00:26:37.698 → 00:26:46.370there aren’t now some exits will comes to mind is like Kobe bike already a few years ago Crossings,
00:26:46.502 → 00:26:51.609well which we covered almost exclusively you guys.
00:26:52.435 → 00:27:00.351They all had cash events so meaning the first generation now that I got some money they are going to invest and,
00:27:00.438 → 00:27:09.011I think you are likely to do as well and what do you think about the importance of those people for the ecosystem.
00:27:09.269 → 00:27:23.972I mean it’s for me it’s always important not to move to a certain city in order to be a successful entrepreneur it’s something you need to be like you need I think you always need to choose yourself where you want to to live and work.
00:27:24.222 → 00:27:32.561And what you work so living in Frankfurt I decided to go to the to Frankfurt when I was starting my first business because,
00:27:32.648 → 00:27:41.347the ecosystem was very friendly in this in those days it was more about how to how to get good projects and jobs and.
00:27:41.587 → 00:27:46.253Paige well bye-bye clients this was something Berlin was not very,
00:27:46.385 → 00:27:56.660interested interesting for me because nobody wanted to pay me they just wanted to get the work done so it was for me it was it was the right place to start,
00:27:56.882 → 00:28:06.013and I think we are we had a lot of help during those those first years we wouldn’t without those.
00:28:06.271 → 00:28:14.142Like envisioning business angels I wouldn’t call them like I would call him folk co-founder / early early business angels,
00:28:14.274 → 00:28:23.333we wouldn’t have made it so it was very very important to find an IT culture with people that wanted to build successful company.
00:28:24.141 → 00:28:33.857But today maybe it’s something that’s and I learned that it’s very important also for me to help other people now to start off and get successful.
00:28:34.187 → 00:28:45.110First step is not not always the money it’s the mentoring aspect here and giving giving experiences but also there will be a necessity for giving out money since.
00:28:45.377 → 00:28:53.167Today we have a software dominated world if you need to run any workflow even if you sell like.
00:28:54.370 → 00:29:04.015Things I’m just standing in front of the stairs great Stan some extension for for my work desk here and this is even if you have.
00:29:04.318 → 00:29:12.072Physical products and need software to to get the business started and when you’re not Tech Guy.
00:29:12.303 → 00:29:24.306You need to have Tech Guys to do the first version of your software so this takes a little bit of money at least to get started and prove that your business is doing during good and that you have a good product Market.
00:29:25.131 → 00:29:30.913And this something that really I think is very very important in such an ecosystem and.
00:29:31.235 → 00:29:36.243Today I want to I would like to do that help that I received 10 years ago,
00:29:36.312 → 00:29:50.448by people that really were very Visionary because there wasn’t really a startup ecosystem back then it’s it’s also important for us it was also important for us to receive like.
00:29:50.887 → 00:30:02.449Research funding which we received like almost a million euro we received as some kind of subsidy research fund by his Noggin tour.
00:30:02.698 → 00:30:07.202This was very important and I think this is this was a great aspect.
00:30:07.964 → 00:30:13.287On the other hand it’s not always easy to,
00:30:13.464 → 00:30:25.971to to get to the government to the great Founders and find find the great companies when you when you want to like get involved in any way so there is.
00:30:26.212 → 00:30:35.028Place for improvement I would say for people that have knowledge and money to get connected to the to the really.
00:30:35.655 → 00:30:42.373Engaged Founders and this is something I definitely need to need to look into right now.
00:30:43.442 → 00:30:55.778So that means people can approach you you are going to mentor and to invest that is pretty good news for the ecosystem what will you be investing in.
00:30:57.891 → 00:31:02.503Tech accounting software I I would say I mean.
00:31:02.779 → 00:31:17.095I have a little split relationship to fintech to be to be honest because for me like creating easy to use products that do a real value always need.
00:31:17.606 → 00:31:23.604To be very easy and understandable I think for accounting it’s always nice to,
00:31:23.691 → 00:31:35.226to make things easier and simpler also if you like for example I’ll toddler who did the reading software for the ID cards the.
00:31:35.466 → 00:31:45.326This is something that’s making that there’s really easy to understand when we talk about other fintechs like trading or crypto those are the things that I would say.
00:31:45.720 → 00:31:52.465It’s even hard for me to to to find out if there’s a real real value for customers,
00:31:52.534 → 00:32:00.585and to transporting that to the Right audience is it’s again very hard so this is the part of intake where I really,
00:32:00.672 → 00:32:06.806always a little hesitant to to help because there was a very very.
00:32:07.109 → 00:32:20.327Visionary business models and I’m always looking and how can I really help us to find solutions for real existing problems and this is where I was would like to focus on well like if there is a problem let’s find a solution.
00:32:21.288 → 00:32:29.816I think I know some people you should talk to that said they did help
00:32:29.732 → 00:32:39.025or hurt you to be had quoted in Frankfurt because my understanding is yes there are a lot of big companies around here a lot of international companies
00:32:38.905 → 00:32:50.638headquartered here especially most people don’t realize it but LG and Samsung they are around here that German headquarter Procter & Gamble is really big in this area
00:32:50.518 → 00:33:02.719plus I did The Usual Suspects here chemical companies the bank’s interest at the airport so a lot of big companies and I assumed like in the like.
00:33:03.121 → 00:33:11.181Everything they are doing they hire smaller companies so that would mean a big local market opportunity for you guys as well.
00:33:12.042 → 00:33:14.701I think it’s.
00:33:16.273 → 00:33:25.603I would say the biggest opportunities for us came because we didn’t have so much competition as a start-up like for example finding,
00:33:25.798 → 00:33:33.678good talent was something that was relatively I mean easier than trying to recruit in the Berlin area since.
00:33:34.251 → 00:33:36.928Our competitors and recruiting were mostly.
00:33:37.222 → 00:33:45.345Agencies big agencies where people need to work the weekend through and this is something where we could be better or Banks.
00:33:45.684 → 00:33:52.591Were people like they earn more money than with our company or with startups in general but they don’t.
00:33:52.976 → 00:34:04.610Usually don’t do such a purpose-driven work that they can do with with hospital or other company so the competition we could really position ourselves in recruiting to be better and different than other players,
00:34:04.796 → 00:34:11.811which was which is always good if you don’t have so many great startups in the area so this is something that might become harder now.
00:34:12.114 → 00:34:26.809Also for like as I said the research funding you can apply and you’re relatively easy get get the subsidy and get the money for free so this is something maybe that’s harder in other spaces.
00:34:27.391 → 00:34:36.892But from a from a perspective of like acquiring clients or strategic partnership I would have expected more since,
00:34:37.087 → 00:34:48.513our approach was to to do Bank strategic partnership with banks and they are in Frankfurt but this wasn’t something that really worked out as I imagined so I would say.
00:34:48.916 → 00:34:58.038This is not something that really helped our case maybe if you do like a kyc startup or something else this would be maybe better but not in our case.
00:34:58.368 → 00:35:07.995And what I think what is definitely needed here and I mean I met Mario through the startup community events that we have here I met,
00:35:08.199 → 00:35:11.793Benjamin through the same connections here so.00:35:12.187 → 00:35:21.741Like meeting great people too to share a vision into work together it’s definitely possible in Frankfort.
00:35:22.350 → 00:35:23.631Many people,
00:35:23.683 → 00:35:35.334I’m not like not easy with quitting that bank job because there’s this is so well paid in order to do a big start of a big Vision start up this something
00:35:35.223 → 00:35:43.913where I would say if you don’t get so much paid as may be invalid it’s easier for you to quit to something else so I think.
00:35:44.640 → 00:35:47.478It’s from from.
00:35:48.556 → 00:35:57.714From the perspective doing something real it’s something where you can find a better a better community and there was not so much like.
00:35:58.296 → 00:36:02.224Bullshit Bingo around here I would I would say.00:36:03.158 → 00:36:15.583Last question because we are already running at almost 40 minutes by now recording time if you just would have one opportunity right here to ask for change in politics,
00:36:15.797 → 00:36:24.487like the talking about the the state of hessen government what would it be and why.
00:36:25.312 → 00:36:30.896I mean locally.
00:36:31.569 → 00:36:40.916I would definitely ask ask ask for more awareness regarding.
00:36:41.291 → 00:36:44.994Initiatives that that are that are done,
00:36:45.171 → 00:36:57.174for startups like bringing people together there are already a few initiatives and I think this podcast is a very good example that it’s there is a very successful startup.
00:36:57.423 → 00:37:02.233And you should have front from around the corner but still I mean.
00:37:02.590 → 00:37:12.667It’s not that the startup scene is like jumping on me when I go out on the street and this is something I would really like to have if I want to help companies or I want to get co-founders.
00:37:12.916 → 00:37:16.475I need to search and this is something that really can be,
00:37:16.589 → 00:37:28.367improved by making it more attractive to start initiative get together funding events and whatever it needs to be why don’t we have a like yearly great,
00:37:28.481 → 00:37:32.985startup Congress here that that could be something really helpful.
00:37:33.477 → 00:37:43.779Besides that and this is not just a state issue it’s really still hard to to to have employees be part of your company and,
00:37:44.001 → 00:37:47.749and get a big upside when exiting the company.
00:37:48.034 → 00:37:55.437And this is something what I learned is too complicated to give out stock options and have people like.
00:37:56.172 → 00:38:00.856Have people paid without paying so many taxes.
00:38:01.168 → 00:38:12.973When they worked their ass off at the last year’s so this is something that really needs to be improved because as a Founder you when you when you have a company that is couple of years old and need to find.
00:38:13.222 → 00:38:22.975Engage people you need to give them stock options in order to have them on board and this is something where we don’t have such a good option right now.
00:38:23.683 → 00:38:29.006And that are almost 40 minutes right now in recording,
00:38:29.093 → 00:38:43.437thank you very much with pleasure talking to you even though I know with your experience we could have talked for a few more hours but but maybe you will do this at another point in time,
00:38:43.569 → 00:38:52.655thank you very much was just a pleasure talking to you and looking forward what news come out of fast bill,
00:38:52.715 → 00:39:01.603for the next year’s thank you Joe for having me it was a pleasure and I’m very looking forward forward to the to the fintech.
00:39:01.997 → 00:39:08.355Um to the FED take how is it called the on the 25th of December the.
00:39:08.622 → 00:39:18.500Annual syntek review by study of radio this is so great I love that so much great thank you very much with just a pleasure all right thanks bye.
00:39:22.800 → 00:39:29.200Music.
00:39:29.408 → 00:39:36.640Interviews at www.startrekphase2.de Kayo remember sharing is caring.
00:39:36.880 → 00:39:49.973Music.
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