Sebastian Schuon, a well-known face in the startup industry, is co-founder and CEO of the Munich-based proptech AlascoAfter studying at CDTM in Munich and a Master's degree in Stanford, he successfully launched the online platform Stylight and was then a business angel at Personiobefore turning his attention to the real estate industry and its digitalization. He has compiled five reasons why getting involved is worthwhile despite the crisis.
1. Not all crises are the same
Inflation and the current tense economic situation don't necessarily mean that all startups are in crisis. As a quick tip, it's worth looking into the background of the startup you're applying to. You can ask specific questions about financing, especially during the application process. Many startups have several financially strong investors behind them and have long since adapted their budget planning to the changing circumstances, for example, by adjusting the timeframe for targeted growth. The key words here are resilience and sustainability. It's no longer just about rapid growth, but above all, sustainable growth.
In the Proptech sector, it can be said that despite the pandemic, many startups have successfully completed financing rounds and are planning expansion in the coming years, which underscores the high relevance and future of the industry (source: Proptech Germany Study 2022). Proptechs remain in demand, especially among investors, and are therefore a secure employer in the long term (source: Proptech M&A Market Report by Hampleton Partners). Apart from that, there are startups that are fundamentally resilient and also future-oriented, such as green and energy startups (Enpal) that will change the future sustainably and offer good prospects despite the crisis. So here's a tip: Look at which topics are moving with the times and will be relevant in the future.
2. Growing together – without a glass ceiling
Word is getting around – startups are becoming increasingly attractive, especially for young professionals, because they can quickly establish a rapid career path. Starting out is particularly difficult for people with little professional experience. It's fortunate, then, that ambitious young professionals often find their place in startups. Young companies are flexible and, especially in times of crisis, offer the advantage of introducing new people to the various areas of their company. And it often doesn't take four years to outgrow a junior position... The growth-oriented structure of startups gives you the opportunity to grow and quickly pursue your professional goals.
The same applies to digitalization: In startups, you grow quickly, but in many cases you also have the opportunity to work in companies that are ahead of their time – in every respect. From the field of digitalization that many startups operate in, to modern workplace equipment and flexible working models, startups offer an innovative working environment.
3. Steep learning curve – gain expert status
The key word "flexibility," combined with flat hierarchies, not only enables rapid growth and exciting developments, but also a steep learning curve. You can become an expert in your startup within a very short time. What's more, there are opportunities to learn beyond your own field. Even within the same company, you often have the chance to explore different areas and, for example, become not only a marketing expert but also support the sales department. If you're looking for strict authority structures and a formal culture, startups aren't the right place for you.
Once that's cleared up, the next step is to be passionate about the topic! Many startups are pursuing important topics that capture the zeitgeist and address topics such as digitalization or sustainability. As with Alasco, proptechs are a relevant driver of transformation, digitalization, and the necessary innovation in the construction and real estate world. In times of crisis, this impact is more important than ever because you can provide decisive impetus to make the industry more future-proof.
4. You like to get involved – “Hands-on startups”
One thing that startups never lack is the unique do-it-yourself mentality. Thanks to small teams selected through carefully selected recruiting processes, you'll work with highly qualified colleagues who want to move things forward together. Ideally, you'll be one of them. Important in startups, and this should not be underestimated, is the willingness and enjoyment to work independently and actively shape ideas and projects.
Given the rapid growth of startups mentioned above, your career prospects are certainly not bad either. To give you a practical example: Alasco follows the motto "Startup well done." The founding team successfully built Stylight a few years ago and brought their valuable experience and learnings to the new project.
5. Want to make a change?
Compared to medium-sized companies or corporations, startups are much more flexible and adaptable in their structures. This is evident in the close collaboration between the various work areas and positions. Last but not least, startups often offer innovative solutions that not only provide employees with meaningful tasks but, at best, also contribute to pressing issues such as sustainability and other topics. Proptechs, for example, contribute 78.2 percent more to ESG and thus to greater sustainability in the real estate industry (source: Proptech Germany Study 2022). Given that the building sector is responsible for 38 percent of global CO2 emissions, there is an opportunity here to make a real impact (source: United Nations Environmental Program 2020). In general, unlike many traditional companies, this also applies to the impact you as an individual can have on the startup, but also on the industry, with your work.
And if that wasn't enough reason, just give it a try: Apply and find out if working in startups is something for you.
