Time for a Klarx update! Because the Munich-based startup Klarx closed a financing round of over €4 million in September 2018. The online construction equipment rental company has already expanded into another country. Now we wanted to know how the company has been doing — our last interview It's been two years since then. Communications Manager Christian Holzapfel answered our questions.
Christian, how did you use the investment from the Series A round?
Our interview partner, Communications Manager Christian Holzapfel
The Financing round We have primarily used this opportunity to further accelerate our growth. This is reflected in a significant expansion of our team. Klarx now has more than 60 employees, with new team members joining most recently in business development and sales. Growth is also being driven by our marketing department, where our headcount has also increased.
Even though we're a digital company and online marketing is our domain, we operate in the construction industry, a B2B segment where trade fairs and events still play a major role. Bauma, as the world's largest trade fair, stands out, and we were naturally represented there.
Klarx update: Internationalized to Austria, more than 60 employees, and still agile
You recently entered the Austrian market in addition to Germany. How did your preparations for internationalization go? What pitfalls did you encounter along the way?
We've had our eye on the Austrian market for a long time. This is less because two of our founders are Austrian than because it's structurally very similar to the German market. This allowed us to prepare very well for this first step toward internationalization. This is especially important for us because we need a network of local rental partners, which we've already gradually built up.
It's similar on the customer side, but for us, it's greatly assisted by the fact that we already have investors from Austria. They're active in the construction industry and some had even rented machinery in Austria before our official market launch. So, everything was very easy to prepare. In the end, the 'biggest' pitfalls are the small details that need to be adjusted, for example, on the website or terms and conditions, which are easily overlooked. As mentioned previously, however, as the team grew, we brought new people to Klarx who had already internationalized other startups. That's why it was a pleasingly smooth process for us.
A snow park and a world record as a prelaunch event
Did you plan a special promotion for the launch in Austria? How did your internationalization process go?
The launch of www.klarx.at We announced this at a press event in Vienna on May 20th. In our industry, it's obviously important that our customers learn about us through their own channels. This includes online advertising as well as the trade press, which is highly valued.
That's why we created a framework for journalists to discuss the news with our founders and me. However, we were already visible and active in Austria in mid-April. We supported the Audi Nines, one of the world's largest snow events, with our machines. Two of our founders are former professional snowboarders and still put their heart and soul into it.
This led to machines that we rent out in cooperation with Wacker Neuson being used to build the snow parks at an altitude of over 3,000 meters on the glacier in Sölden. In addition to impressive images and a brilliant team event for us, we also set a new world record in the quarterpipe. This meant that we were already visible at this event before our rental business actually started in Austria, and we were kind of making a splash.
“Invest more in internal communication”
You previously mentioned that you now have over 60 employees. Have your company structures adapted? If so, how? And have you managed to maintain agile startup processes?
Yes, they definitely do. I've been with klarx since 2016. In the beginning, there were much broader areas of responsibility and "Swiss Army knives" who took care of various topics. As the company grew, this naturally became more professional, and clearer structures emerged in the form of "departments." However, I don't really think the term "department" is appropriate, since we always work cross-functionally with the various departments and therefore agilely in projects.
Of course, this also requires structuring this way of working into appropriate processes, clearly defining roles, and, above all, investing more in internal communication compared to the early phase. However, this is perfectly normal as the company grows in size and has worked very well for us during this rapid growth phase.
The vision: Klarx wants to cover the entire needs on the construction site with its platform
Where are you with your startup today? Where do you want to be in five years?
We are clearly the leading digital platform for construction equipment rental in Europe. We work with countless rental partners, all of whom ensure that we can offer our customers a growing range of equipment in an increasing number of countries every day.
Our current focus is on expanding this role in Europe and becoming the central contact for all construction equipment needs. In five years, we will have expanded our offerings to cover other areas of construction procurement needs in addition to construction equipment. This will include building materials, waste disposal, and other services. With Klarx, the customer will have a central contact to cover all their construction site needs.
“Klarx has done very well with investments from its own industry”
What advice do you give to other founders?
For us, a complementary founding team that works well together was essential. Figuratively speaking, our founders have very different strengths, complement each other perfectly, and can therefore pursue our vision seamlessly. This is the fundamental prerequisite for the company's success.
In addition, you should talk to customers about your idea as quickly as possible and repeatedly in order to really build the product that the customer needs.
As for investors, Klarx has done very well with investments from its own industry, who themselves benefited from the product and were therefore included in the feedback.
