This Month in German, Swiss, and Austrian (GSA) Startups — April 2023 | Episode 380

Startuprad.io
Startuprad.io
Published in
22 min readApr 27, 2023

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Welcome to our April 2023 wrap-up with important news from the startup scenes in Germany, Austria, and Switzerland in 30 minutes or less 🙂.

Welcome to our startup news wrap-up for April with Chris from New York City and Joe from Frankfurt. We recorded this news episode on April 26th, 2023.

All news not yet included here will be published in our next news episode for May, to be published on June 1st. Find all links to the quoted information on our Medium blog link below.

On Business Culture and Schedules

A little note on business and travel in Germany for May and June here. May has three public holidays, where (depending on your state) you will not find an open grocery store except for train stations and airports, but restaurants are open. Also, don’t expect emails to be returned or phones to be answered these days.

They are the Europe-wide Labour Day on May 1st (a Monday) and Whit Monday on May 29th. There are also two Thursdays (depending on the state), which are regional holidays, May 18th and June 8th, where most people will take off the following Fridays to have a four-day weekend.

Sounds like a lot? Well, there is only Oktober 3rd as a public holiday before Christmas for most people.

Our Highlights:

Considerable funding made headlines last month. We have more than 600 M euros in funding in our highlights alone. A potential large exit: Software AG, the Darmstadt-based listed software company, is close to a 2.4 bn US$ exit with an offer from Silverlake Partners. Also, Berlin-based Blinkist may be close to a 200 M € exit. Hundreds of millions of raised funds were announced by Enpal (via ABS), Isar Aerospace, IntegrityNext, Razor Group, and Tado. Also, SAP is close to investing in Germany’s hottest AI startup Aleph Alpha from Heidelberg. Diverging picture in Airtaxi space: Lilium is looking for new investors; Volocopter builds the taxis and expects them to fly in less than 500 days at the Paris Olympics.

Let’s talk startups:

The Video Podcast Will Go Live on Thursday, April 27th, 2023

The Audio Podcast Will Go Live on Thursday, April 27th, 2023

As always, the audio podcast will go live a few hours earlier. Our publication on Ximalaya always occurs on the following Friday, April 28th.

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Our Enablers

This recording is supported by HTAI and the Enterprise Europe Network Hessen

This recording was made possible by HTAI and the Enterprise Europe Network Hessen. These organizations have made tremendous contributions to helping startup businesses succeed and thrive, providing a range of services from helping to find grants to ongoing partnerships. By taking advantage of these resources, startup companies can network and develop innovative strategies for success on the international stage. The dedicated support of HTAI and the Enterprise Europe Network Hessen is paramount in providing startup businesses with the tools for lasting success. Look for our dedicated sub-podcast in partnership with them: Tech Startups Germany on our https://linktr.ee/startupradio

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Top News

Software AG Close to a Multi-Billion Acquisition

Private-equity firm Silver Lake Partners, based in Menlo Park, is close to buying Germany’s Software AG in $2.42 billion deal https://buff.ly/3UXGCVD The offer is already public, reported Reuters. Shares of listed Software AG jumped 53% at the announcement. The investor already knows the company: In February 2022, Silver Lake had invested 344 million euros in the software developer’s convertible bond, which upon conversion would represent nearly 9% of issued Software AG shares.

Enpal Raises More Than 300 M€

Enpal raises up to €356 million via Securitization of Solar Receivables with first German residential solar ABS https://buff.ly/3Acm4zb ABS are asset-backed securities, that means if Enpal can not pay interest or pay back the final sum, the investors have the collateral (assets) backing the security

Blinkist Close to 200 M € Exit

Reports blog Deutsche-Startups, with an offer from an — yet unnamed — American company. The blog, with its founder Alexander Hüsing is usually pretty well informed and has been right before https://www.deutsche-startups.de/2023/04/25/startupticker-blinkist-flink/

Isar Aerospace Closes €155 Million Funding

Isar Aerospace closes €155 million Series C funding round, ignition sequence start, all engine running https://buff.ly/3zRKcqn Investors are 7-Industries Holding, Bayern Kapital via its Scale Up Fund Bavaria, Earlybird Venture Capital, HV Capital, Lakestar, Lombard Odier Investment Managers, Porsche Automobil Holding SE (Porsche SE), UVC Partners, and Vsquared Ventures

100 m € for IntegrityNext

The company has been bootstrapped for seven years, but now IntegrityNext takes €100 million from EQT Growth fund https://buff.ly/3JTS6nQ

Razor Group Raises 88 M US$

Berlin-based Razor Group, an e-commerce aggregator, closes Series C at $88M at $1.2B valuation, acquires Stryze to consolidate https://buff.ly/3oo97Q9

Tado Raises Money, As IPO Plans Falter

Smart thermostat startup Tado wanted to IPO but then came Corona and Ukraine. https://buff.ly/43wwDKS They originally wanted to explore a sale or IPO after their 2021 fundraising, but the SPAC deal faltered and they needed to adapt. So they raised 46.9 M US$. Their existing investors already include Siemens, Amazon, and EON.

SAP To Invest In AI Startup

German press reports that the software giant SAP is about to invest in German ChatGPT competitor Aleph Alpha, which also claims to have eliminated fake news from its software https://buff.ly/40xrHDk as yet, the valuation and investment are not known.

Related: Heidelberg-based startup, a competitor of ChatGPT, claims to have eliminated fake news from its tool Luminous https://buff.ly/3L6z3bE

Airtaxi Lilium is Looking for New Money, and Volocopter is Planning to Fly

Airtaxi Lilium: 0 Euro revenue, 253 mn € losses. They are looking for new investors https://buff.ly/3KocIGe Volocopter on the other hand, wants to start operating their drones as taxis ASAP. They also pledged to operate their air taxis in Paris, during the Olympic Games, in less than 500 days https://buff.ly/411TdJx

Related: Volocopter starts production — founders magazin https://buff.ly/3UIDKvw

Housekeeping & Time to Brag

Today we want to hint at one event we will attend this year where we are media partners. Look at our medium blog for discount codes:

Our Internet Radio Station startup.radio surpassed for the first time 24.000 listeners a month on April 24th.

Ecosystem

Hubs

Germany has a federal tradition, which means it is much less centralized than other countries. Therefore not all startup activities happen in Berlin (only around 20%) or Munich (around 10%). We highlight some of the hidden gems here.

Frankfurt

  • Frankfurt-based fintech Dwins raises 13 mn €, doubling valuation to 32 mn € The funding was led by PayPal and SCOR Ventures; existing investors such as Deutsche Bank invested as well https://buff.ly/3m9AU5Z We had them in a first interview in 2015; maybe their first interview ever …
  • Equipme wants to be the “Operating System for the B2B subscription Economy,” and the Frankfurt-based startup raises 3,8 m € for their goal https://buff.ly/43K1Jib

Mainz

  • BioNTech is now the undisputed biotech market leader in Germany, accounting for 50% of the industry’s revenue, 36 bn € in two years, due to their corona vaccine https://buff.ly/3zSZnQ9

Itzehoe

  • Investors like Sharp invest in German AR startup Oqmented, based in Itzehoe, in a 20 mn US$ Series A round https://buff.ly/3KfRDfV

Cologne

  • Cologne-based handyman startup Installion — helping with the shortage of qualified employees for renewable energy installations — makes eight-digit exit https://buff.ly/3A8jeLf

Austria

  • Austrian startup Avisio has to file for insolvency https://buff.ly/3MVobPc the startup offers software for purchasing and stock management for hotels and catering

Switzerland

  • Swiss-based Wingtra drones on about its new $22 million in funding as it carries on mapping the world around us https://buff.ly/3KmPK28

General News / Tech News / Companies News Section

Tech News

  • According to Surfshark’s “Report on Government Requests for User Data” the German government is the second largest user data requester in the report, just behind the #1 US, followed by Singapore, the UK, France, and Ireland https://buff.ly/3GmYFhG
  • Urban Sports Club offers a flat gym rate. Now their 2021 revenue has fallen to 46,6 m €, from 58,2 m €. The loss is also shrinking from 40,5 m € to 33,8 m € in 2021. So far, 138 m € have been invested in the company https://buff.ly/41x9FSt
  • UK-based startup Shift buys Berlin-based Movinga https://buff.ly/43Szo9s?utm_source=-custom-by-source-0- Ending a long story involving investors claimed to have copied companies, legal battles with naming rights between Move24, Movinga, and Movago. Stories that made it in our news for years: Movinga was the first platform to organize to move your house. Then came Movago, which had to rebrand to Move24 after a battle around brand names. CEO at Movinga has been Finn Hänsel for the turnaround, who is now the founder at Sanity Group and has been a guest in our podcast. Move24 was acquired by Movinga in 2018, and with the acquisition, the story has found an end, we think.
  • Quick delivery service Flink has quietly cut 40% of their headcount or 8.000 jobs https://buff.ly/41CsQdu

Schumpeters Schöpferische Zerstörung ⇒ Creative Destruction Still Ongoing:

Schumpeter was one of the most influential economists of the 20th century and coined the term creative destruction in German Schöpferische Zerstörung and Entrepreneur. Learn more about him here: https://en.wikipedia.org/wiki/Joseph_Schumpeter

End on a High Note: Successful Fundraisings and Exits:

Keep in mind this is a tiny selection.

Stay Ahead of the Curve

Automated Transcript

Intro (00:00:01) — When you are an entrepreneur with a great idea, it can be daunting to find funding. Startup Raven takes the process out of your hands by helping entrepreneurs connect and learn about potential investors all in one place without any long filled forms or a thousand questions. Sign up for early access@startupraven.com.

Intro (00:00:35) — Welcome to Startrad.io, your podcast and YouTube blog covering the German startup scene with news interviews and live events.

Chris (00:00:50) — Hello and welcome to this month in German, Swiss and Austrian startups. As you can hear, we are back with the sirens here in New York City. Um, and as always, this is our news wrap up with important news from the startup scenes in Germany, Austria, and Switzerland in 30 minutes or less. So we have to get going. Um, this is our wrap up for April with me Christian from New York City and Joe from Frankfurt. Hey Joe, how are you doing?

Joe (00:01:17) — Hey Chris. Doing fine, how are you?

Chris (00:01:19) — Good. I was recently traveling to Italy for a conference about, uh, media and how media changes to Peru. That was nice. I was at South by Southwest. That was nice. Uh, I think we spoke about this. So yeah, a lot of traveling. I’m really good. Hey

Joe (00:01:32) — Guys, this is Joe from Startup. Oh, today I want to introduce you to our newest partner News Lee. News Lee is an all in one audio app for iOS and Android. It picks up the top trending articles on the web, on topics you choose at any given moment and reach them to you in a natural human voice. We are also available there with all of our podcasts. Subscribe now and get one month off the premium subscription with a code startup red, s t a r t u p r a d on news me.

Chris (00:02:14) — We recorded this episode on April 26th in 2023. All news not yet included here will be published in our next episode for May, um, which is supposed to be published on June 1st. You can find all of the links as always in the quoted info on our medium block link below. And, um, we get going with some info on business culture and schedules.

Joe (00:02:42) — Yes, exactly. We want to give you a little glimpse into German business culture as well. And it’ll note on business and travel in Germany for May and June Here. May has three public holidays where depending on your state, you will not find open grocery stores except for train stations or airports, but restaurants, gas stations and stuff like this is open. Also don’t expect, um, any emails to be answered or phone calls, um, to be returned during those days. They are the year wide. Labor Day May 1st with Monday on May 29th, and there are two Thursdays also depending on one of the German states you’re in, which are regional holidays, May 18th and June 8th, where most people will take off the following Friday to have a four day weekend. Sounds like a lot. Well, there is only October 3rd as a public holiday before Christmas for most people. Chris, you got some highlights here, right? Yeah.

Chris (00:03:43) — Those pesky Europeans and their vacations. Yeah, I got a couple of the highlights that we will be talking about today. So, uh, considerable funding made headlines last month. I think we have more than 600 million Euros in funding in our highlights alone. Um, we have a large potential exit software ag. The based listed software company is close to a 2.4 billion US dollars exit with an offer from Silver Lake Partners. Also Berlin based blinkers maybe close to a 200 million Euros exit. There are hundreds of millions, uh, of race funds, which were announced by Pel via ab bs, iza, aerospace Integrity Next Razor Group and taul also s SAP is close to investing in Germany’s hottest AI startup, a alpha from Heidelberg. And uh, we have a diverging picture in the air taxi space where Lium is looking for new investors. Volo Cups builds the taxis and expects them to fly in less than 500 days at the Paris Olympics. This sounds like as if it would happen for sure, , but we will see. Um, so yeah, let’s talk startup. The video podcast will go live on Thursday, April 27th, audio same or uh, Thursday, April 27th. As always, you can tune into the internet radio station@startup.radio. Um, you can subscribe to all the info about our station to the newsletter, the podcast, the YouTube channel at Link three slash startup Radio. That is link true ee Estonia slash startup radio. Now, back to you to talk about the enablers

Joe (00:05:21) — And about the enablers. This recording is supported by Hetra Invest and the brand European Enterprise Network. Uh, this recording was made possible by H D A I and the European Enterprise Network. Hessen. These organizations have made tremendous contribution to helping startups, businesses succeed and thrive, providing a range of services from helping to find grants to ongoing partnerships. By taking advantage of the resources, startup companies can network and develop innovative strategies for success on the international stage. The dedicated support of H D I I and the Enterprise Europe Network hasn’t is paramount in providing startup businesses with the tools for lasting success success. Look for our dedicated sub podcast and partnership with them called Tech Startups Germany on our link three. Startup raven.com is also our sponsor. The best way to identify investors and corporation partners for early stage startups. Sign up for early access@startupbrave.com and you can find us on newly and get the first month off the freemium prescription. Uh, go to newly.me n e w s l r s l y me and use to code Start Rat to get one month off the free premium subscription. Chris, you are a top news guy, right?

Chris (00:06:46) — ? Yeah, totally. So, uh, first thing we are looking at is that software Ag, which is a pretty non-descript name, but is also like a catchphrase for the whole company because they are offering, uh, software solutions for other companies and they are, um, a huge coding, uh, firm in Germany. Um, they might be pretty close to a multi-billion dollar acquisition because the private equity firm Silver Lake partners based in Menlo Park is close to buying them in a 2.42 bill two Villa 2.42 billion deal. The offer is already public reported by Reuters shares of listed software Ag jump, uh, more than 50% after the announcement. The investor already knows the company because in February 22, silver Lake head invested 344 million euros in the software developers convertible bond, which upon conversion would now represent nearly 9% of the issued software AG shares. So that’s rather big story.

Chris (00:07:46) — Uh, same goes for nal, which raised more than 300 million euros, um, 356 million euros to be precise via securitization of solar receivables with first German residential solar. A B S A BS are asset backed securities. That means if NAL cannot pay interest or pay back the final, some the investors have the collateral assets backing the security Blinkist, which is one of those, uh, companies that helps you to understand books better or basically summarizes books. Um, they closed a $200 million, 200 million Euro exit reports Deutsche Star startups, um, with an offer from a yet unnamed American company. The block with its founder Alexander Husing is usually pretty well informed in Germany, has been right before. So, uh, we guess there is something to that news. And as we said, there is a lot of, uh, talk going on about the air sector or aerospace sector. We have Eza Aerospace, which close 155 million Euro funding.

Chris (00:08:53) — It’s their series C funding round, um, ignition sequence start all engine running as the headline of the article, uh, says that we have in our show notes. It’s, uh, from Tech EU investors are seven industries holding by capita via via its scale up fund, Bavaria Early Bird Venture, capital, capital, HV Capital Lake Star Lombard, O D a investment managers, Porsche automobile holding UVC Partners and vs Squared Ventures. We have news about a hundred million euros for integrity. Next, the company has been bootstrapped for seven years, but now took a hundred million euros from the E Q T growth fund. We have news about Razor Group who raised 88 million US dollars. Uh, they’re balloon based e-commerce aggregator and closed their series C uh, funding and now stand at a 1.2 billion, uh, valuation and acquires stride to consolidate. Then Tado raises money as their I P O plans falter.

Chris (00:10:04) — It’s a smart thermostat startup, um, who as I said, had initial plans to do I to do an I P O, but then came Corona and the Ukraine War. Um, they originally wanted to explore a sale after their 2021 fundraising, but the S P A C deal faulted and they needed to adapt. So they raised now close to 47 million US dollars. Their existing investors already include Siemens, Amazon, and Aon German energy supplier. And then oh two more to go s SAP is, uh, to invest in an AI startup. Uh, it’s a software giant in Germany, really one of the big success stories in German entrepreneurship of the last couple of decades, and they are about to invest in German chat, G P T competitor a Moore a Alpha, which also claims to have eliminated fake news from its software as yet, but the valuation investment are not known.

Chris (00:10:58) — Related to that is news that the Heidelberg based startup, a competitor of chat G p t claims to have eliminated the fake news from its to luminous. So we have here two articles giving you some background about this. And as I said, as always, we can’t do a whole episode without looking at air taxis. And now, uh, we have news about Lillian. They are looking for new money even though they have zero euro in revenue, but 253 million euro in losses. They’re looking, looking for new investors, which, uh, on the other hand, Volo Cop wants to start operating their drones as taxis asap. They also, as I said, pledge to operate the air taxis at the Paris Olympics. So that means in less than 500 days, also said that they started production. So we will be in drones soon. I guess back to some housekeeping and you

Joe (00:11:56) — Yes, yes. Housekeeping and time to brag. Uh, we have one event recommendation still ongoing, the tech open Air July 5th and seventh and Berlin. Thank you for everybody who reached out to me at EU Startup Summit. We took, we had some interview time there and we’ll have two upcoming interviews in the next weeks. And also a little bit bragging. Our internet radio station startup Radio surpassed for the first time 24,000 listeners in a single month, meaning thir over 30 days. I think that’s pretty cool. Talking about the ecosystem here. EU law’s comprehensive regulation is mea crypto law passes is in decrypt. While this round of tech optimism feels different, is a very interesting article looking a little bit back and forth. Um, on the last downturns in VC and startup on TechCrunch and on sale for 40% of stakes in European VC funds by sifted, some of them are not doing pretty well, talking about the hubs.

Joe (00:13:06) — As always, we bring you some hidden gems. Since Berlin and Munich don’t do all the startup activity, Germany is a very much fellow federalized and not centralized as other countries. Talking about my home turf Frankfurt here, Frankfurt based FinTech twins, because it’s founded by twins, raised 13 million euro doubling valuation to 30 million euros. The funding was led was led by PayPal and score ventures. Existing investors include Georgia Bank and they invested as well. We had them most likely for the very first interview in 2015. Maybe it’s time for an update. Equip me once to be the operating system for the B2B subscription economy and the Frankfurt based startup raises 3.8 million for this goal. The city of Mines, my hometown biotech is now the undisputed biotech market leader in Germany accounting for 50% of the industry revenue, um, 36 billion in two years due to to your Corona vaccine. You can learn, read more if you are able to read German in hundreds plot. Chris, you wanna talk about the capital city of it? Aho?

Chris (00:14:31) — Yeah. One day I have to, uh, uh, visit Mines to see whether they now have like golden streets or something. They just don’t know what to do with all the BioNTech money. Uh, yeah, it whole, I I have to admit, since you always say I’m very good at GE geography, I don’t, I think it’s a lower Saxony. Um, ha is the home of an AR startup called Augmented oq augmented and um, sharp invested in them. Augmented does, um, small laser, uh, projectors for ar um, AR glasses and, uh, sharp invested 20 million US dollars in a series A round in them. Moving on to Cologne where we see that the, uh, cologne based handyman startup in Stallion, um, they’re helping with the shortage of qualified employees for renewable energy installations, made an eight digit exit. So it’s interesting to see that there’s already like a cottage industry coming up around the green technology.

Chris (00:15:35) — And as always, we also have a look at Austria and Switzerland, a brief one in Austria. The startup Aviso had to fire for insolvency. Um, the startup offers software for purchasing and stock management for hotels and catering and in Switzerland, the Swiss based Vitra drones on about its new 22 million in funding as it carries on mapping the world around us. That’s it for now with the hubs, which means time for some general tech news or general news and tech news and company news. And we start with the tech news. So, uh, a couple of them are general overviews that give you more insights about the German startup ecosystem right now. And we have the report on government requests for user data of Surf Shark. And according to that, the German government is the second largest user data requester in the report just behind the United States and followed by Singapore, the uk, France and Ireland.

Chris (00:16:36) — More information about that in the show notes. Urban Sports Clubs offer, sorry, urban Sports Club offers a flat gym rate, but their 2021 revenue has fallen to 46 million euros from 58 million euros before. The loss is also shrinking though from 40 million to 34 million and so far 138 million have been invested in the company. UK’s based startup shift bought German Berlin based moa, um, which is ending a long story involving investors claim to have copied companies legal battles with naming rights between Move 24 MOA and Mugo and uh, stories that made it in our news for years because MOA was the first platform to organize to move your house. Then, as I said, came Mogo, which had to rebrand to move 24 after a battle around the branding. Then c o MOA has been Fin Henzel for the turnaround, who’s now the founder of Sanity Group and has been a guest on the podcast. Move 24 was then acquired by, acquired by MOA in 2018. And with the acquisition, the story has found an end. We think we will see and the quick delivery service Fling has quietly cut 40% of their headcount or as they say, 8,000 jobs, which seems like so much because how many people

Joe (00:17:56) — Especially to do it quietly, 8,000 jobs,

Chris (00:17:59) — Many, how many people were working for them. Uh, I guess it’s all like the delivery people. Um, which means I’m handing it over back to you because you want to talk about creative destruction

Joe (00:18:14) — As you like. I’m afraid you, you’ll soon have to turn in your black belt in geography again because it’s It’s just across the meaning. It’s not in lo sax accent, but it’s in north of Hamburg.

Chris (00:18:29) — Yeah, yeah, same, same, same thing.

Joe (00:18:32) — I always say creative destruction, still ongoing. Trumpeter was one of the most influential economists of the 20th century and coin the terms creative destruction in German as well as term entrepreneur. You can learn more about him in the Wikipedia article. Um, at first we have Peter Tieback trading app. Next markets race 30 million during Corona, but now we’re looking to sell all its assets. I think they’re shutting down Berlin based EdTech, startup Quo. Fox has to file for insolvency restaurant app disco, eat allowed reserving tables and paying the bill. But this end in insolvency as well. After having gone through an insolvency already back in 2019. Zero waste grocery store has to for insolvency as well, despite having raised 5 million Euro seed funding in February, 2022. Shopping club. Oh, sleeping Cube startups, sleep Row, we talked about them before, went into insolvency. Unfortunately there’s no party taking over the whole company, but assets may be bought. Shopping club brands for France, formerly owned by eBay will be shut down after being bought by PE Fund region in 2019. And Berlin based barbecue startup kta has to file for insolvency as well. We have the post of the founder, if you don’t know what Krista is, there is a link to the Kickstarter campaign. It’s a particle barbecue, um, barbecue crill and we will end on high note of course with Cris again, right?

Chris (00:20:26) — Yes, just a couple of, uh, positive news to uh, end things on a good note. This is the section where we talk about some of the successful fundraising and exits in Germany. It’s only a tiny selection, um, that I will be rattling off. There is TPA solutions, for example, which breaks new grounds as it raises a 15 million euro round to tackle other large machinery based industries. BMW I ventures shift 15 million euros, deep, deep drives way , the Munich based biotech startup AM Bionics raised 13 million euros in a series A funding. Arian a t o, uh, t u Munich spinoff. So technical university spinoff raised 8.5 million euros for the biogas power plans of the future. And French R f B player silver without the e obviously slices off a sliver of the German market via uplift one acquisition. And that’s it for now. As we said, we have some news to stay ahead of the curve. For example, the seven Deadly Mistakes of Startups and Forbes who has a fraud problem. And um, this, that’s a wrap I would say thanks for. That’s a

Joe (00:21:39) — Wrap. And actually Chris, we got close to 20 minutes with intro and outro, so I think we’ve been doing pretty well. Keep in mind the May News will be published on June 1st, and then we have one more episode before we go into a little ZMA break where there’s only every other week a new interview published. And Chris and I will be back with some startup news to be published on Labor Day September 4th as the official end of summer. Chris, I’m really looking forward to talk to you soon, towards the end of May.

Chris (00:22:15) — Yes, Chris out. Bye .

Joe (00:22:18) — Bye you.

Outro (00:22:23) — That’s all folks. Find more news streams, events and interviews at www io Remember is caring.

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