We spoke to Daniel Vukovic from Munich Venture Partners He also told us what is considered an absolute no-go when starting a business.
Please introduce yourself briefly. Who are you and what do you do at Munich Venture Partners?
As an Investment Associate, I am involved in many processes at both investment and fund level, including supporting companies such as Electrochaea GmbH and Prolupin GmbH. I'm also responsible for deal flow sourcing as a scout and, like my colleagues, attend events in Germany and Europe to get to know new startups and identify trends.
Always stay flexible!
What factors are crucial for you when it comes to investing in a startup?
The team is paramount. Several factors are crucial here. In addition to technical and entrepreneurial expertise, operational excellence is also required. Clean structures and processes are essential so that visions can be realized quickly, the company can grow, and adjustments can be made on the fly and in a lean manner if necessary. The idea itself must be supported by outstanding technology, scalable, and timed to the right level. If this is the case, the startup can determine its own development and adjust its internal controls to ensure continuous improvement. If the desired solution also sustainably disrupts and redesigns existing value chains, we at Munich Venture Partners consider this to be a transformative technology and see potential for investment.
What is the biggest mistake a startup can generally make?
Lack of flexibility – nothing should be sacred in company development, and one should constantly question oneself. Therefore, the willingness to evolve and reinvent oneself and one's solution is a key to success. For example, the market may not accept business models as planned, or market needs may change during the development cycle. And even if good concepts take hold, it is essential that the startup constantly adapts to stay on top of the market and further expand its lead.
To be successful, a startup must…
…have three characteristics:
- passionately believe in yourself and your idea,
- can sell well and
- be persistent — whether with the product or during financing rounds
“We need major exits across Germany and Europe”
What do you think are the most promising trends in the startup world right now?
One of the hottest trends is clearly the Internet of Things (IoT) in terms of various verticals. But topics like artificial intelligence, blockchain, and robotics are also very exciting at the moment.
What needs to change to attract more venture capital to Germany?
We urgently need major exits across Germany and Europe. This is the only way to ensure that the VC ecosystem develops and continues to grow. Exits provide more know-how and capital, which further improves the quality of the startup landscape and thus strengthens everyone involved in the ecosystem. These experiences of success are important. It's a cycle that needs to be fed. We must be bolder in building startups into major players, who will then remember the origins of their success in the future and know that the startup ecosystem holds other promising solutions. Furthermore, the domestic economy itself must become bolder when it comes to trade sales; otherwise, the sell-off of promising technology in Europe will continue.
Munich offers everything a startup's heart desires
Why and for whom are startups so important today?
Startups are the engine of our society of tomorrow. Startups are a key factor in keeping Germany's innovative power alive.
Why is Munich a good breeding ground for startups? What do you particularly value about it?
Munich offers a startup everything it could wish for — a large VC network and many incubators/accelerators, good infrastructure (e.g. universities), many blue-chip corporations, but also numerous talented founders and a culture that promotes hard work and a down-to-earth attitude.
Which of your investments do you currently see the greatest potential in?
Our portfolio company relayr is one of the rock stars among IoT platforms. Their industrial solutions are causing quite a stir. Another highlight among our investments is the Allgäu-based company sonnen. The team is giving some established companies a headache, as they are redefining value creation in the energy market and are in the process of completely turning the market upside down. In addition to our other great companies in the portfolio, Electrochaea from Planegg should be mentioned here. With their power-to-gas solutions, they are among the market leaders in biological methanation and are a solution for large-scale energy storage and CO2 recycling. I'm sure we'll hear a lot of positive news here as well.
Thank you for the interview!
