At the Munich startup Catchys, things have changed since our first conversation a good year ago They have just successfully completed their second round of financing, and in September 2017 they won not only the main prize (a trip to the Tech Challenge) at Bits & Pretzels, but also the Munich Startup Award. So it was time for a detailed update. We spoke with co-founder Franzi Majer, who is responsible for finance, sales, and product.
With the successful financing — the investors gave 750,000 euros — the two founders, Franzi Majer and Magdalena Oehl, can tackle various topics. The relaunch of the website, a metasearch engine for second-hand fashion, was the first step. With the first closing of the financing round, Catchys has already built new features and optimized usability for customers. The second step will be expansion to the UK and the Nordics. And third, the founders are planning a major TV campaign that will air at the end of the year — ProSieben is a strategic partner of the startup.
Both Franzi and Magdalena had already founded a restaurant business (respectively). TalentRocket). In addition to her restaurant startup, Franzi also founded the German GmbH of Videdressing, a large French second-hand marketplace, and led the marketplace's expansion as part of the management team. At the time, she shared an office with her co-founder, says Franzi Majer, and explains:
"We recognized early on that the market needed something like Catchys. And then we bootstrapped it, building the product on the side. With the first round of financing—which was at the end of 2015—we abandoned our old projects and invested 100% in Catchys."
The motivation: A need in the market… and a Hermes bag
A second trigger for the company's founding was an acquaintance who was looking for a special Hermes bag and sought advice from the founders. To help him, the two clicked through every single shop they knew. The thought came to them: There must be an easier way. And they pursued it. With success, as they began generating sales in March 2016.
Was it easier for the female founders to obtain financing because they already had startup experience? Franzi says:
"It definitely opens doors. Of course, the idea and the team have to be convincing in the end. And most importantly, we already had a certain network. And that helped us enormously from the very beginning."
Tips for finding investors
At the same time, Franzi convinced investors with her extensive market expertise. She also knew the key players from her previous role as managing director at Videdressing. Another key factor for success is certainly the fact that both founders are excellent networkers. Franzi's tip for finding investors:
"What worked best for me was just opening my mouth and asking. There are so many people you wouldn't immediately associate with knowing investors. Ultimately, it turns out that these are the people who can make super-good intros. The most important thing is not to be too focused, but to diversify freely."
The founder had often only mentioned in passing “Maybe you know someone else who is active as a business angel” and then came a “Yes, I actually know someone there.” Over several of these opportunities, one or two additional business angels came on board at Catchys.
Traditional events were also helpful in finding investors. Franzi cites Bits & Pretzels as an example. Catchys had the main prize in the pitch fetched, and also the Munich Startup Award brought additional attention. Although Franzi already knew many investors, she says:
"Especially with business angels and family offices that haven't already invested in an e-commerce startup, you first have to build trust. Then awards like the Munich Startup Award are extremely helpful in gaining a little confidence boost and getting your foot in the door."
As a female founder in front of investors – advantage or disadvantage?
Doesn't it help a bit to be a female founder in the tech sector? Franzi laughs:
"The question comes up again and again. I see it as neither an advantage nor a disadvantage. In my entire career, I've never felt disadvantaged in any way as a woman. Women should step out of their victim role here. I don't see any particular advantages here either—it's more about the person and the product."
For the Catchys CEO, success depends on whether a founder presents himself confidently and believes in himself and his idea. First, the founder must be convinced of the business model and his own figures; only then can he convince the investor, says Franzi, adding:
"If I don't confidently pitch my idea, why should my counterpart believe I'm moving my business forward? Who will invest then?"
Of course, we want to know if she's already claimed the Bits & Pretzels grand prize and attended Richard Branson's Extreme Tech Challenge on Necker Island. However, the event has been postponed until next October due to the aftermath of Hurricane Irma. Is the founder going on vacation there? Franzi tells us:
"I'll definitely arrive a few days before the Tech Challenge and explore the area around Necker Island. I'm most looking forward to the days on Necker Island itself, of course—it's sure to be a great networking event where I can get a lot out of it, both for myself and for Catchys."
Good ideas require extremes
Finally, we have a few questions left and want to know: What is Franzi's greatest talent?
“I’m pretty good at inspiring people.”
When and where does the founder get the best ideas?
"There are two extremes: Either a solution comes under intense pressure. Or I have ideas in a relaxed phase, when I'm walking my dogs or relaxing in the evening."
And what is currently at the top of your desk?
“Fortunately, not the GDPR anymore,”
Franzi says laughing, but a book. Publishing a book as an online platform? Yes, that too can be done via the right network. Because one of the CatchysInvestors have a publishing house. And so the startup, with two former Instyle editors, published the book "We Love Vintage." It immediately shot into the top 10 of Amazon's fashion book list.
And last but not least: What has Franzi Majer always wanted to say to the people of Munich?
"Munich is the best city to start a startup. Although, I'd actually say that primarily to non-Munich residents."
