In November, we traditionally meet for the end-of-year event: the masterclass followed by a matching event. In 2024, we focussed on the trio of business angels, venture capitalists and founders. We discussed this with representatives of the three groups, gained exciting insights from the German Venture Capital Association from Berlin and learnt about the pitfalls in negotiations between angels and start-ups.
The Baltic Business Angels masterclasses focus on deepening your own knowledge in the field of start-up investments and exchanging ideas with other investors in an atmosphere that explicitly allows for personal discussions. Once again this year, our year-end event took place over one and a half days in a new hotel in Schleswig-Holstein.
We started on Friday at the Seeloge Eutin with the opportunity to introduce ourselves to each other in a one-minute elevator pitch. This quick exchange created a relaxed atmosphere and encouraged networking among the investors and guests. During the breaks, this kick-off could be used optimally for more in-depth discussions and new contacts could be made.
In the subsequent panel, which was unfortunately somewhat smaller than planned due to illness, we discussed with Barbara Dombay from BayStartUp, our member and founder Aaron Sen, Uwe Bräuer from Genius Venture Capital GmbH and Moritz von Grotthuss in his role as an angel and founder. Joint investments by venture capitalists (VCs) and business angels offer numerous opportunities, but can also be associated with specific challenges. The parties usually have different investment objectives. While VCs are often looking for larger returns and have a clear timeframe for their exit, business angels can be more open to long-term commitments and may be willing to invest in companies that are not immediately profitable.
There are also differences in the decision-making processes: VCs usually have more formal decision-making structures and longer due diligence processes. Business angels, on the other hand, can make more agile and quicker decisions. This can lead to tensions when decisions need to be coordinated. In addition, VCs tend to play a more active role in the management of the company and often demand seats on the board in order to influence strategic decisions. Business angels, with their generally smaller tickets, are easily outvoted.
VCs also often have clear liquidity requirements and expectations regarding capital returns, while business angels may be more flexible. These different expectations could influence the strategy and growth of a start-up.
To overcome these challenges, clear communication and setting common goals is crucial. A transparent exchange about expectations, strategies and approaches can help to optimise cooperation and minimise conflicts, but is in fact often difficult.
In order to occupy ourselves with something completely different, we had again prepared a small entertainment programme and were given two exciting guided tours of hidden rooms such as the attic, cellar and special locations in Eutin Castle and learned more about the history of the castle, its inhabitants over the centuries and many curiosities.
After Ulrike Hinrichs, head of the German Private Equity and Venture Capital Association, shed light on the current VC landscape in Germany, we received valuable advice from Jan Schnedler, an expert in start-up law, on how angels can protect themselves from unfair contractual agreements. After a varied first day, the evening programme included a joint dinner where the participants discussed their experiences and new ideas in a relaxed atmosphere.
On Saturday, we were able to get to know seven selected start-ups and engage in in-depth discussions after their pitches. Among them were PhoneStamp from Aarhus, Esencia foods, amsight, AdaptX Systems, chargeIQ, Join My Talent and arcneo. More than half of the teams were subsequently invited to further talks with the Angels.
The Baltic Business Angels Masterclass has once again demonstrated the importance of close networking and exchange between founders and investors, thereby helping to strengthen the start-up culture in Schleswig-Holstein and beyond. We look forward to the next edition!
Claus Ruhe Madsen has been Minister for Economic Affairs, Transport, Labour, Technology and Tourism since 29 June 2022. He was born in Copenhagen on 27 August 1972; he is married and has one daughter.
Claas begann seine Karriere in der Old Economy bei „AEG und Electrolux Group“, wo er seine Leidenschaft für aufstrebende Industrien entdeckte. Das ist es, was ihn bis heute antreibt. Nachdem er bei „American Heritage Management Corp.“ an der Wall Street war und in den 1990er Jahren an den ersten internetbasierten Börsengängen teilnahm, wurde seine Leidenschaft für Technik und disruptive Technologien immer stärker. Er ist Mitgründer von „New Commercial Room“, einem VC-Unternehmen mit Sitz in Hamburg, mit dem er ein Portfolio von High-Tech-Wachstumsunternehmen verwaltet, das von medizinischen Geräten über Medien bis hin zu SaaS, IT und Cybersecurity reicht. Als Angel Investor investierte er sowohl privat in Unternehmen als auch mit dem „btov Investor-Network“. Er betreut aktiv zahlreiche deutsche StartUps, Accelerator-Programme und ist Scout im Norden für den „High-Tech Gründerfonds“ (HTGF). Dadurch hat er Zugang zu erstklassigem internationalen Deal Flow und Investoren. Darüber hinaus hat Claas mehrere Aufsichtsratspositionen inne und ist Live-Musiker mit der „Soul Lounge Connection“.
As a serial entrepreneur, investor and business angel, Julian has been involved in the German start-up and venture capital scene since 2003. He focuses on helping selected early-stage start-ups and their founders to turn their ambitions into reality. Investments are typically made in early-stage B2B technology companies with an initial track record. Julian’s current focus is on Industrial IoT, data analytics, B2B platform tools, e-health and 3D. He is particularly keen on spin-offs originating from research foundations and organisations or technical universities, but is also open to other opportunities. The best way to find out more about Julian is to visit his Website and here in the Interview.
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