2009 from a German VC’s perspective

December 25, 2009 at 6:46 pm 2 comments

The German Internet start-up battle

There is lots of noise in Berlin. Numerous Internet start-ups have been founded and seed-funded in the last years. 2009 was dominated by new (mainly copied) ecommerce cases. As an early stage VC investor (Target Partners) who sees the majority of the investment cases in Germany it was quite astonishing to see the “rat-race” which is currently taking place. The German Internet and ecommerce incubator scene was ruled from the European Founders for some years. Due to the fact that this concept seems to work others tried to copy this approach. The result is that three or even more incubator organizations are often competing with their start-ups today. A good example is the battle of the German copy-cats Sponsorpay, Gratispay and Deal United. Every start-up is supported from a different incubator an is doing more or less the same.

I highly respect the power and the experience of all involved people – in the supported start-ups as well as in the incubator organizations. But I am honestly asking myself if it is a good thing or a waste of resources that such kind of competition looks sometimes like an end in itself. Well, time will tell and in the meantime we all have some interesting things to observe.

The deal flow in 2009

This year was really an interesting one. We’ve seen more deals than ever before. Statistically the ratio of pure Internet case has decreased and the percentage of technology cases has increased. Which is a good tendency because we believe that technology can make the difference. If I compare the deal flow in 2009 with the deal flow some years ago it is more than obvious that the German start-up market is growing. There is no proof but I think this is the result of various causes, e.g.:

  • Public stories about successful entrepreneurs are motivating other people
  • Active business angels are supporting entrepreneurs and their ideas
  • Social media are connecting and inspiring entrepreneurs
  • Seed investments are possible again because of the establishment of the High-Tech-Gruenderfonds and some business angel networks

I hope that this trend will continue.

The investments in 2009

Will be posted in some days…

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Entry filed under: Entrepeneurs, Startups, Technology, Venture Capital. Tags: , , , , , , , .

A day in the Internet Investments in 2009

2 Comments Add your own

  • […] The German Internet start-up battle There is lots of noise in Berlin. Numerous Internet start-ups have been founded and seed-funded in the last years. 2009 was dominated by new (mainly copied) ecommerce cases. As an early stage VC investor (Target Partners) who sees the majority of the investment cases in Germany it was quite astonishing to see the “rat-race” which is currently taking place. OlafJacobi.com […]

    Reply
  • 2. Johannes  |  January 6, 2010 at 7:44 pm

    Absolutely agree on the first point. I believe that incubators should focus on testing business ideas, instead of launching dozens of copy-cats, all based on similar technology. Y Combinator is an excellent example of how out-of-the-box ideas can be grown and brought to market in a very creative atmosphere.

    It would be great to have something similar in Germany, but untill now Angels and VCs are still too much in “fast-copy & fast-exit” mode. Such ventures sometimes get lucky, but are not very sustainable in the long term….

    Reply

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This blog is a view from an VC investor, entrepreneur as well as from a private person. You'll find posts about Startups, Technology, Venture Capital, Entrepreneurship and about life and fun. If you enjoy and if you don't please send me your critical comments.

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