E98 [AI-Translated] Startup-Mood | Technology | Phys. AI | Startup-Agenda | Why VC | Stellar | Coachbetter | NUCLIDIUM

00:00:00: The original podcast was recorded in German.

00:00:03: This podcast

00:00:03: was translated using Artificial Intelligence,

00:00:07: Burnrate the Venture

00:00:08: Insider

00:00:08: Podcast with Max Meister and Guy Gefredi.

00:00:12: Hello!

00:00:12: And welcome to Burnrate – the VC Insider podcast.

00:00:16: I'm talking here with Guy GeFredy about a startup scene where they focus on venture capital.

00:00:22: We're almost at episode one hundred.

00:00:24: today is episode ninety-eight.

00:00:26: we are recording Wednesday June third at nine p.m.

00:00:29: This podcast is sponsored by our partners Omnium and Upscaler.ch.

00:00:35: Well, guy hello!

00:00:36: What are today's topics?

00:00:37: Today in the news we'll be talking about The New Startup Day's sentiment radar... ...the investments of the technology fund.... And the trend from SAS to physical AI In our main topic.

00:00:47: will then speak with Michael Stuckey... ...The CEO of Swiss Startups Association About the new startup agenda Switzerland.

00:00:55: In the listener question, we'll clarify when venture capital really makes sense and when it mainly buys you growth pressure higher expectations.

00:01:03: And less freedom.

00:01:05: finally as always will take a look at.

00:01:09: Let's start with the news.

00:01:10: Sentiment in the Swiss startup scene is somewhat better than last year, that is shown by The New Barometer from Swiss Startup Days.

00:01:17: around three hundred people took part In this survey and well over seventy percent are optimistic or even very optimistic about next six months.

00:01:26: Last Year it was just under sixty seven percent.

00:01:28: Access to capital remains the biggest hurdle.

00:01:32: At same time bureaucracy and regulation Are increasingly perceived as a burden.

00:01:37: It is also striking that the shortage of experienced executives appears to have eased significantly.

00:01:44: Guy, how do you interpret this overall positive sentiment?

00:01:48: I would say it's certainly a good signal.

00:01:51: Many founders seem adapted in an economically and geopolitically challenging environment.

00:01:56: at the same time we shouldn't over-interpret numbers.

00:02:00: access to capital remains biggest problem for more than one third of respondents.

00:02:05: Optimism, therefore does not automatically mean that the framework conditions have become easier.

00:02:11: As an entrepreneur you always need a certain level of optimism.

00:02:15: otherwise You wouldn't really face The challenges that are put in front of you especially In the early stages and you wouldn't follow the path required to climb Mount Everest.

00:02:26: Bureaucracy and regulation in particular are being strongly criticized.

00:02:31: I mentioned that, what do you think needs to improve?

00:02:50: Regulatory culture, young entrepreneurs and companies lose a lot of time and resources because that.

00:02:56: On the positive side access to experienced executives has apparently improved.

00:03:03: I'm very pleased hear this is perception.

00:03:07: it could be crucial for continued growth.

00:03:09: ecosystem

00:03:11: Very good.

00:03:11: Let's move on to the second news item.

00:03:13: We have interesting news from the Swiss clean tech ecosystem.

00:03:17: since July, twenty-twenty five The technology fund has added thirteen more companies to its portfolio.

00:03:23: This means the fund now supports one hundred and thirty four companies.

00:03:28: I wasn't aware of that And yes it really is a lot i have to say.

00:03:33: The instrument is interesting because it's not only about classic startup financing through equity.

00:03:39: The technology fund provides guarantees of up to three million Swiss francs, this gives clean tech companies access to more attractive bank loans without having give-up additional shares This so called non dilutive funding a total of two hundred seventy seven million Swiss Franc in guarantees are now outstanding.

00:03:59: According to the Technology Fund, The supported companies have cumulatively saved or avoided around twelve point nine million tons of CO two equivalents over the past ten years.

00:04:11: Among the thirteen new companies are some familiar names.

00:04:14: Libreck for example recycles large lithium ion batteries and reports a recovery rate of ninety seven percent.

00:04:22: Volteris, which we know very well develops solar modules for greenhouses that convert certain portions of light into electricity.

00:04:31: Or Loft Dynamics, which builds compact VR flight simulators for pilot training.

00:04:36: Guy do you think this model is an underestimated lever for startups?

00:04:41: Bank loans with a government guarantee instead of always immediately planning the next equity round.

00:04:47: I

00:04:47: would say it is often underestimated, but particularly relevant for companies that already have a functioning product initial revenues and clearly planned investments.

00:04:57: In this case debt financing can make much more sense than additional equity or further dilution of founders.

00:05:03: however its not substitute to venture capital For very early stage startups in the pre-seed phase with high technology risk and little revenue equity investment usually remain indispensable.

00:05:14: The model is especially interesting in the phase where a company wants to scale, build new facilities expand production capacity or simply requires infrastructure.

00:05:24: Or working capital for its business model max.

00:05:28: Is this also assigned that clean tech startups are gradually becoming more mature moving from pure research projects two companies that actually bankable?

00:05:37: To some extent I would say yes.

00:05:40: The list shows a broad range of topics, as we have heard.

00:05:43: These are no longer just ideas on paper but solutions with concrete use cases.

00:05:48: At the same time, the risks should not be underestimated.

00:05:52: Many clean tech models require a lot of capital and have very long sales cycles.

00:05:58: The guarantee removes part of the risk for the bank That can be exactly building block that is missing between good pilot project and scalable company.

00:06:07: Let's move on to third news item.

00:06:09: For years standard recipe in venture capitol was quite clear build software, scale quickly achieve high margins then exit.

00:06:18: But in the age of AI this logic is fundamentally changing.

00:06:22: The reason is almost paradoxical.

00:06:25: Software can now be developed faster and faster which makes traditional software easier to replace.

00:06:31: New AI tools can replicate functions for which entire startups used to be founded a very short time.

00:06:39: Capital is therefore increasingly flowing into areas that cannot be copied so easily, such as chips energy data centers manufacturing robotics or so-called physical AI machines that understand their environment and can perform complex tasks in the real world.

00:06:57: If I may add a comment, this is also the focus of the investment thesis on Koyo our fund.

00:07:03: The numbers are remarkable.

00:07:05: according to Pitchbook global VC investments in robotics and physical AI increased from four point two billion dollars In twenty nineteen to twenty six billion dollars in twenty twenty five And by May twentieth twenty twenty-six more than twenty three billion dollars had already been invested This year.

00:07:23: that is quite remarkable Guy, are we witnessing the next AI hype here or is this actually a fundamental strategic shift in venture capital?

00:07:33: Before I answer that.

00:07:35: We also covered the shift from SAS to physical AI In our latest newsletter which we published This morning at Koyo.

00:07:42: You can read it there...we shared The link via LinkedIn in a post.

00:07:46: Happy To receive comments From all listeners.

00:07:48: And Is It A Hype Or Is Actually A Strategic Shift?

00:07:52: Of Course Physical AI Is Currently Somewhat Hyped.

00:07:55: physical AI, robotics or deep tech.

00:07:58: When investors hear these terms a certain gold rush mentality quickly emerges especially with robotic startups.

00:08:05: we are sometimes seeing extremely high valuations even though some of these companies are still generating almost no revenue and are still far away from a solid business model.

00:08:15: but behind the trend there is also a genuine structural change.

00:08:20: In traditional software, what mattered for a long time was how quickly a company could develop and sell the product.

00:08:27: Today these development costs are falling massively thanks to AI.

00:08:31: That is good for founders But it also means that products can be copied and displaced more easily And the software mode is simply no longer as large as it used to be.

00:08:39: With hardware chips energy infrastructure or industrial manufacturing things very different.

00:08:45: There you need capital expertise supply chains production capacity and often years of development, that makes these companies much harder to copy.

00:08:53: That creates a deep moat—a strong defensive barrier.

00:08:57: The downside which we should perhaps also discuss here is this investments are significantly more complex.

00:09:05: Not every investor who understood SaaS can automatically assess whether a physical AI system, robot or new material... ...can actually work in these markets and sustainably build a successful company within the sector.

00:09:17: In your view Max does that mean classic software startup story is now over?

00:09:21: I don't think so but i do believe requirements are clearly increasing.

00:09:26: Software is not disappearing.

00:09:28: quite opposite.

00:09:29: Robotics data centers and factories all require software as well.

00:09:34: But a startup that only offers single function, as was often the case in past will have harder time.

00:09:42: Many such functions can be integrated directly by large AI platforms or replicated very quickly.

00:09:49: We know and I think everyone knows.

00:09:52: In my view three categories remain particularly interesting.

00:09:56: First, software that is deeply integrated into business processes and has access to proprietary data.

00:10:02: I think it's extremely important.

00:10:04: Second, software directly benefits from the AI infrastructure boom.

00:10:09: for example tools allow companies to switch flexibly between different chips or models.

00:10:14: we have already seen such cases.

00:10:16: And third, companies that intelligently combine software & physical infrastructure.

00:10:22: That is precisely where physical AI could become especially relevant in the long term.

00:10:28: And software also plays an important role there, so software is not dead.

00:10:33: I just think software alone is increasingly insufficient as an investment thesis

00:10:38: and perhaps we can also say that a new phase is beginning for VCs instead of only focusing on rapid scaling and low marginal costs.

00:10:46: in SaaS startups.

00:10:47: We now have to think more again about production capacity, supply chains energy requirements IP technological feasibility and so on.

00:10:55: In other words Silicon Valley is back.

00:10:58: we are returning to chip development which is where venture capital originally had its roots in the old days.

00:11:06: that is why it's called silicon valley.

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00:12:25: And yet we keep hearing the same thing from the startup scene.

00:12:38: Founding a company in Switzerland is comparatively easy, but as soon as a company wants to grow and scale internationally things become difficult.

00:12:46: There's not enough growth capital.

00:12:48: Employee participation plans are complicated.

00:12:51: Permits for international talent often take long time.

00:12:54: Spin-offs struggle with bureaucratic hurdles.

00:12:57: Many political processes move much more slowly than companies they affect.

00:13:01: This exactly where the new start up agenda comes.

00:13:05: The position paper formulates concrete reform proposals in three areas, talent and labour markets capital financing government regulation.

00:13:14: The central question now is how does an agenda actually become change?

00:13:18: Today we will discuss this with Michael Stuckey CEO of the Swiss Startups Association.

00:13:24: We want to understand which reforms will be tackled first How influence on politics and administration works in practice And how success.

00:13:34: Michi, welcome to Burn Rate.

00:13:35: Thank you guys!

00:13:36: Thank you Max.

00:13:37: You have been CEO of the Swiss Startups Association since the beginning of April.

00:13:43: What attracted you into this role and why did you choose the SSA?

00:13:47: As I've had a fairly long career And i'm bit older now...I probably had an opportunity To experience many different facets of entrepreneurship Whether that was earlier as banker on finance side then as entrepreneur Later again as VC in finance And I think it was a great challenge for me to bring everything together and see whether we can move the ecosystem forward together.

00:14:09: Excellent!

00:14:11: At the beginning of this year, the SSA published The Startup Agenda Switzerland.

00:14:16: The position paper contains a broad range of reform proposals.

00:14:19: What is the concrete trigger on the start-up agenda?

00:14:22: And what problem did you want solve that had previously not been addressed sufficiently?

00:14:27: Guy, You mentioned at the beginning For decades We have been near top innovation rankings.

00:14:31: At the same time, however in international competition as a business location we have been moving backwards especially when it comes to helping startups grow and scale.

00:14:40: What was certainly missing was a unified politically broad based voice for the entire ecosystem And that is exactly what this startup agenda aims to be.

00:14:49: It is intended to be The Voice of Startups and the Ecosystem in Bern... ...and what is important Is that it was developed jointly with partners from different parts Of the ecosystem whether investors, ecosystem players or politicians.

00:15:02: We are convinced that the ecosystem has now truly come together because we all feel the same pressure points and share

00:15:20: talent, capital and government and regulation.

00:15:23: I mentioned that earlier.

00:15:24: which measures are currently at the very top of the priority list in this first phase?

00:15:29: And perhaps why those in

00:15:30: particular?".

00:15:31: So i think it's also important to distinguish between ongoing parliamentary processes.

00:15:44: Two, for example in the area of employee participation.

00:15:47: One on innovation zones for startups as well an initiative that would allow start-ups to use Swiss military facilities.

00:15:55: these initiatives should continue to be supported and actively accompanied.

00:15:58: then there are let's say three clearly defined priorities we took directly from startup ecosystem.

00:16:04: We didn't pull them out thin air.

00:16:06: These were really our members saying this is where things are burning.

00:16:10: The first topic was Employee Participation.

00:16:13: That is certainly a combination of cantonal and national measures that are needed, And it's considered an extremely urgent issue throughout the startup community.

00:16:21: Second The mobilization of capital.

00:16:24: You know this all too well.

00:16:25: How could we attract more investors?

00:16:27: Particularly in the VC sector For larger financing rounds Of Swiss startups & scale-ups Making the whole thing more attractive.

00:16:35: Third Certainly the issue of work permits for people from third countries.

00:16:39: This topic is becoming increasingly important because more and more talent is needed.

00:16:44: We have a great many people, particularly in the scientific sector.

00:16:47: Nevertheless we also need other people And some of them must be brought from these third countries.

00:16:52: So that's certainly another very urgent issue.

00:16:54: Perhaps I would mention here There are workable solutions.

00:16:58: Other countries show us how it's done.

00:17:00: The UK for example with attractive conditions For ESOPs.

00:17:05: In Canada and Estonia there was start-up visa.

00:17:08: You can get it within a few weeks instead of several months.

00:17:12: So perhaps we should also look at certain things that already exist and not reinvent the wheel?

00:17:16: Exactly, many of these demands are new.

00:17:20: Employee participation work permits and pension fund investments have been discussed for years And people keep saying improvements are coming.

00:17:27: What makes you optimistic or gives you confidence That this time there will actually be movement?

00:17:34: As I mentioned in the beginning This paper was created by us alone.

00:17:38: It was developed together with eighteen partners from across the entire ecosystem.

00:17:43: So it is really very broadly supported, we also have parliamentary voices from all major political groups.

00:17:49: this isn't just let's say The Political Right, the FTP, the Centre and the Greens were all involved And I think that is what distinguishes us in the past.

00:17:59: We are able to bring all sides together.

00:18:02: The pressure has grown collectively and i believe That has been noticed In Bern.

00:18:07: Regarding your point Yes, these issues and demands have been on the table for years.

00:18:12: I think in the past this concerns were usually driven by individuals or smaller groups without systematic and broadly politically supported backing And i think that is exactly what we as SSA together with our partners want to achieve.

00:18:26: We are convinced that this will be a key difference, and that is why I think we can look optimistically toward the future—that at least things already in motion would actually be implemented —and these new topics which aren't entirely new but now being brought to burn by much greater impact could move things

00:18:43: forward.".

00:18:44: Let's get more concrete.

00:18:45: How does political influence actually work?

00:18:48: Does the SSA speak directly with parliamentarians, federal offices, cantons and business associations?

00:18:55: And who ultimately needs to be convinced for a proposal to become an actual reformer.

00:19:28: this is broadly supported and because we receive support from many different places.

00:19:32: We are often pushing on open doors, specifically we have SSA staff in the federal palace regularly not constantly but regularly.

00:19:40: they know the environment very well and speak directly with members of The National Council And Council Of States.

00:19:46: incidentally This has also been the case over the past three days.

00:19:49: .We've already heard certain things From Bern ,and I can tell you that more good news Is coming.

00:19:54: it's about presenting concrete descriptions and also proposing solutions that can then be addressed through parliamentary initiatives.

00:20:02: That is the formal route, it takes time and requires patience but it's essential for getting the ball rolling.

00:20:08: And as you mentioned there are certain topics we address directly with federal offices.

00:20:14: We have very good contacts with people in the canton of Zurich So they're a very open and constructive exchange.

00:20:21: Often meet people You always have the impression that these are large bureaucracies, but you also encounter people who genuinely enjoy being able to change things.

00:20:30: And I think that is a rewarding part of what we do – there's really nobody against startups and it's also a major source for us.

00:20:39: That's nice to hear.

00:20:41: You said it can take a long time, what exactly does that mean?

00:20:46: There are many laws that still haven't been implemented after decades.

00:20:50: What time horizon are you planning for when it comes to implementing these proposals and what do you want to achieve in the short term?

00:20:57: We've already touched on a few things

00:20:59: The famous Time Horizon.

00:21:00: I think we need to be realistic And thats why we think at two speeds.

00:21:04: there is quick wins within twelve to eighteen months.

00:21:08: I know that sounds like a very long time for startup in the political process, That is extremely fast.

00:21:14: For example administrative processes.

00:21:16: one topic Is digital state ensuring certain procedures can happen much faster again The example of our exchanges with the Canton of Zurich.

00:21:25: and then there are medium-to-long term legislative adjustments.

00:21:29: Yeah you're right guy!

00:21:32: But again, we are convinced that because of the United Front we have here it can get the stone rolling more quickly.

00:21:38: One of the proposals mentioned in the paper is a national fund structure with the goal of bringing an additional one billion Swiss francs per year into the startup market.

00:21:48: How realistic is that goal and where exactly should that capital come from?

00:21:52: It's

00:21:53: certainly ambitious but when you look at how much money available in Switzerland I won't say lying around... ...but available!

00:22:01: You can measure it however you like.

00:22:03: The money is there, so I think that's already the good news.

00:22:06: now It's really about creating the right framework conditions.

00:22:10: Other countries where we may be a bit critical at times such as France have actually demonstrated quite well with their TB fund That institutional capital Can be mobilized?

00:22:21: The state May need to simplify things somewhat and again perhaps act As a role model.

00:22:27: Denmark has also introduced this very successfully over several years.

00:22:30: The Netherlands is another example, in some cases if you compare them there's actually less capital available so it worked as well.

00:22:38: It's important to understand that the capitol must come from different sources.

00:22:42: One is pension funds.

00:22:43: I don't think we need go into further.

00:22:45: Then there are corporates.

00:22:47: Again i believe they're a significant potential and of course we have bring family offices and industrialists.

00:22:54: once again We are trying to play a catalytic role together with these other players.

00:22:59: And I think that if it is broadly supported and people keep hearing the same message repeatedly, It also becomes a matter of education.

00:23:06: you have to guide people a little... ...and create positive incentives.

00:23:09: then we will achieve it.

00:23:10: Will we achieve within the next five years?

00:23:12: Maybe not!

00:23:13: Nevertheless If look at the amount of capital available.. ..and investment opportunities from our perspective there's no reason why should be able to achieve.

00:23:23: And if we now look five years into the future, what changes need to be implemented and visible by then?

00:23:28: for you?

00:23:29: Michi to say.

00:23:31: The startup agenda Switzerland that we launched in twenty-twenty six has made a real difference.

00:23:36: I'd love to have a crystal ball but okay that then also makes it possible to hire talent from all over the world and retain talent.

00:23:57: That's often an issue as well.

00:23:59: people come enjoy a good lifestyle, and then realize that the employee participation plans are not actually very attractive so they leave again And that's especially unfortunate.

00:24:10: The goal is ambitious but if in three years we can say that We have among the best employees stock option possibilities In the world?

00:24:18: Second, definitely work permits.

00:24:21: Some cantons such as Zug and Schwitz have already shown that it is possible to issue visas relatively unbureaucratically.

00:24:28: Of course the qualifications must be right.

00:24:30: There must be proof.

00:24:31: these people can actually deliver.

00:24:33: But these cantons realize that for startups and scale-ups, it is indispensable to be able to hire such people without the process taking months.

00:24:42: And I know myself that months also mean money.

00:24:44: so that's extremely important and certainly a huge issue!

00:24:48: Third we keep coming back to this same topic capital –certainly one of the biggest leavers.

00:24:54: We may not have that billion in three years But if we had half of it, that would already be tremendously significant.

00:25:06: As a founder, I wonder when venture capital really makes sense and when the capital mainly buys you growth pressure higher expectations and less freedom.

00:25:31: In other words, a wolf in sheep's clothing?

00:25:34: I find this question particularly interesting because in the startup world financing is often presented in very one-sided way.

00:25:42: When company raises five ten or fifty million it initially sounds like success.

00:25:48: There is a press release, perhaps a photo with the investors and the number itself almost becomes quality metric especially given the brutally high rounds we have recently seen even here in Switzerland.

00:26:00: But our financing round not actually proof that business model works.

00:26:05: it only shows that investors are willing to bet on certain future.

00:26:09: whether that future materializes completely different question.

00:26:14: And of course, the money does not come without a price.

00:26:17: You sell shares meaning equity you give up part your control and above all expectations change Suddenly.

00:26:25: it's no longer just about building good company.

00:26:28: It becomes about scaling faster growing entering new markets, hiring more people and becoming significantly larger within a relatively short period of time.

00:26:39: That can be exactly the right thing to do!

00:26:42: There are business models where speed is important even essential.

00:26:46: when a market is just emerging network effects play a major role or competitors are raising capital very quickly.

00:26:52: it can be dangerous to act too slowly then and providing a company with a great deal of capital in the short period as we have seen very clearly with Anthropic and OpenAI over the past few months.

00:27:07: But there are also companies for which this pressure is more harmful, firms that could actually grow healthily from their own cash flow i.e.

00:27:16: bootstrap but after large round suddenly had to follow different logic then growth quickly becomes important than profitability.

00:27:25: Teams are expanded marketing budgets increased and new markets opened at all costs even though the core business may not yet be truly ready or stable.

00:27:36: And I think that is exactly what Lewis question is about.

00:27:40: his venture capital always an accelerator?

00:27:43: Or can it also push a company in the direction that doesn't actually fit its business model?

00:27:49: Guy, how can a founder recognize whether VC truly fits the business model or where?

00:27:54: bootstrapping would be better strategy

00:27:57: for me.

00:27:57: It really starts with very simple question does the company need speed to win at all?

00:28:04: there are business models were capital is genuine strategic advantage.

00:28:09: For example, as you mentioned when a market is just emerging network effects are decisive or high up front investments are required before the product can scale at all.

00:28:18: Then growing too slowly can genuinely be dangerous.

00:28:21: Or perhaps You simply need money in order to get started and enter the market.

00:28:25: But many companies do not automatically need money from investors or VCs.

00:28:30: If I can sell a solid product generate early revenue And grow from cash flow then bootstrapping Is often very attractive option.

00:28:38: then I retain more ownership as an entrepreneur, maintain control of the company and that often brings much more peace-of mind when it comes to strategic decisions.

00:28:48: Therefore for me the decisive question is not could i raise money?

00:28:51: but rather what exactly can i achieve with that money?

00:28:55: That would not be possible or would be significantly more difficult without external capital.

00:29:01: It's a very interesting topic.

00:29:02: There is start-up we are currently looking at, I won't mention any names of course for potential investment that Koyo.

00:29:09: in the recent meeting i asked them do you even want venture capital?

00:29:13: I mean it also question your own strategy and founders said Of course!

00:29:18: We want to grow extremely fast but when really probe deeper explain what means.

00:29:27: always say When you take VC money, it also increases the risk of total failure because you put enormous strain on a system.

00:29:36: Of course, it may be that VC money allows to become very large but probability does not work is also high versus building a company incrementally step by step as you said building solid cash flow model creating great dividend case and everyone doing well.

00:29:53: those cases exist too.

00:29:54: they are highly sustainable very successful, and that has a great deal to do with the character of the founders.

00:30:02: It is important to address this question very early on among the Founders in a founder agreement…and discuss it thoroughly!

00:30:09: What you actually want?

00:30:11: The Question Is Always.

00:30:13: Do You Want The Golden Apple At The Very Top Of The Tree Which Is Very Difficult To Reach?

00:30:17: Or Are You Satisfied With The Beautiful Red Juicy Apple On The Second Branch?

00:30:22: or Do You Simply Take An Apple That Is Even Lower A real low hanging fruit and say fine, we'll build a cool business model.

00:30:30: We recently had an exit from the start up that sold dog accessories.

00:30:34: it was at ten million exit.

00:30:36: sure there wasn't earn out involved.

00:30:38: both founders probably took around two to three million each.

00:30:42: you can spend quite few years surfing in living nice life with that and thats why question is Why always go for massive scale if it doesn't fit your character at all?

00:30:53: I think that is an extremely important question.

00:30:55: And, for us as investors... ...that's exactly the point!

00:30:58: It IS an EXTREMELY important question.

00:31:01: We have to know the founders well because Founders often say Hey..I want to become HUGE but they are neither The type of people or do they have the abilities.

00:31:11: That's why it is extremely important to really probe deeper and then jointly decide what the right strategy for company.

00:31:19: And of course there also concern that money can encourage bad habits, so what changes in a startup guy when suddenly a lot of capital sitting in the bank account?

00:31:29: Well,

00:31:29: first of all, capital sitting on the bank accounts often amplifies what is already there.

00:31:34: It doesn't fundamentally change how our company is set up.

00:31:37: A good team with clear business model can grow much faster but if it's still unclear why customers are really buying that product then money actually leads to problems and hide other problem at same time.

00:31:50: We talked about this last week on the podcast.

00:31:52: Suddenly, people are hired quickly because there is capital available and there's growth pressure.

00:31:56: There is more budget for marketing even though nobody really knows how to use it And then new markets are simply opened Even though the core business isn't yet stable.

00:32:05: For a while that feels like growth But maybe you have bought revenue at very high price meaning one dollar of revenue for ten investment dollars And then you haven't actually built a sustainable company at all.

00:32:18: Sometimes, you don't even get to revenue.

00:32:20: instead You have simply created a very expensive occupation for the founders involving team building and internal processes.

00:32:27: That's why scarcity can be something positive.

00:32:31: It forces founders set priorities and think carefully about every dollar.

00:32:35: They understand exactly what customers truly need What they are willing pay for Where to invest each dollar in order create greatest impact.

00:32:43: That can make things slower, but when growth eventually comes it is often much healthier.

00:32:48: If we turn this around though bootstrapping can sometimes also be an excuse the romantic notion that We are independent When in reality The company should Be growing Much faster

00:32:58: exactly.

00:32:59: i don't think Bootstraping Should Automatically be portrayed as the Morally Superior option As many people do.

00:33:07: Slow growth is not an end in itself.

00:33:09: It can be just as risky to be too cautious, to miss opportunities or something we see very often—to under-invest because of fear of losing

00:33:17: control.".

00:33:18: For me it's really about the sequence.

00:33:21: Besides having your own strategy, it should first be clear that the product works.

00:33:25: That customers genuinely see value in it and there is a plausible growth channel.

00:33:30: if additional capital then helps scale or working model more quickly venture capital can of course make great deal sense.

00:33:37: I think that's key question.

00:33:40: Can additional capital help scale a model?

00:33:43: more quickly.

00:33:44: It becomes problematic when the money is not used as an amplifier for a working business model, but has a substitute for one or when founders raise capital because large round looks like success from

00:33:56: outside.".

00:33:57: We recently talked about fast follow-ons.

00:34:00: this somewhat related without asking themselves what obligations come with it And perhaps the answer to Louis' question is, venture capital makes sense when speed is truly a strategic advantage and when you know quite precisely what you want to accelerate with money.

00:34:16: Anyone who raises capital not just selling shares he or she usually also choosing certain path more speed, ambitious goals less freedom.

00:34:26: that's indeed case why this question must be addressed among founders right at beginning.

00:34:33: So let's move on to the transactions.

00:34:35: Several transactions were announced last week as well and, as always will highlight ones we consider most important.

00:34:42: Let start with Stellar Alpina a Zurich based space tech startup located at Innovation Park Zurich.

00:34:49: Just few months after its founding it completed a pre-seed round of more than three and half million Swiss francs.

00:34:55: The round was led by Founderful with participation from LP and E, other strategic deep-tech investors.

00:35:02: This is a very early but ambitious space tech propulsion case of the Swiss ecosystem.

00:35:07: Stellar Alpina is developing compact rotating detonation rocket engines or RDREs for moving satellites and other assets after launch.

00:35:17: The key point is that access to orbit becomes cheaper... ...but moving payload between orbits remains slow & inefficient.

00:35:24: Stellar Alpina wants to close this gap with smaller and more efficient engines.

00:35:29: Looking at this, what I find particularly impressive is the speed of technical execution.

00:35:34: Eighty-two days after founding the company The team had already completed a full test campaign With its first engine prototype including eight tests And during those tests they achieved upto five stable detonation waves.

00:35:47: According to the company This was the first known commercial RDRE hot fire campaign in Europe.

00:35:54: The founders come from ARIS, the Academic Space Flight Initiative Switzerland where they had already developed their first student-built RDRE in twenty-twenty four.

00:36:03: So that team brings not only academic know how but also a highly test driven engineering culture.

00:36:09: it's about building firing breaking learning and improving.

00:36:13: That exact speed is important to market.

00:36:16: development cycles are often very long

00:36:19: And they now want to use the capital, to conduct further hot-fire campaigns build larger testing infrastructure and invest in development of a flight capable engine.

00:36:28: Strategically The goal is turn an early technical proof point into commercial platform for in space mobility meaning transfer repositioning more complex missions between higher orbits.

00:36:39: For next transaction we're heading Thurgao.

00:36:43: You could also call it most India.

00:36:45: Is that correct?

00:36:46: Do you know?

00:36:47: I'm not sure all people from Thurga would appreciate it.

00:36:50: Okay, fair enough!

00:36:52: Coachbetter – a sports tech startup founded in twenty eighteen has completed the pre-series A round of six point four million francs.

00:37:00: The German Football Association also joined as strategic investor.

00:37:04: The company now employs around sixty people and is entering its next phase of international growth with this round.

00:37:11: Coachbetta develops digital platform for sports clubs that combines training planning team management communication, and club administration in a single solution.

00:37:21: Coaches can structure training sessions more effectively analyze games evaluate performance data And access a library containing more than seven hundred exercises and specialist resources.

00:37:32: The clear focus is on football but the software Can also be applied to other sports such as tennis.

00:37:37: The target customers are mainly amateur clubs, associations and organisations that want to digitise their sporting and administrative processes.

00:37:47: Coach Better says it is already used by thousands of clubs worldwide with key markets in the United States Australia & Germany.

00:37:56: At the same time top clubs such as Manchester City and Borussia Dortmund As well national associations among its users.

00:38:04: What I find particularly exciting is the German Football Association joining as a strategic investor.

00:38:09: The association has more than eight million members and over twenty four thousand clubs, those are enormous numbers that naturally give coach better direct access to German amateur football.

00:38:22: together they're developing what we call digital clubhouse platform for Club administration management.

00:38:28: this much more then traditional financial investment.

00:38:32: The investor is simultaneously a key distribution partner.

00:38:52: Existing investors such as Brideye Ventures, Swiss Founders Fund and One Thousand Eleven.

00:38:58: As well as well-known football personalities Such as Hansi Flick Paul Lumbert and Julian Draxler have participated again in the round.

00:39:06: Let's move on to todays final transaction.

00:39:09: Nuclideum a biotech company takes us to Basel.

00:39:13: The Company has completed an oversubscribed Series B extension of more than twenty six million Together with the first tranche of seventy-nine million from last year, twenty-twenty five.

00:39:23: The series B now totals one hundred and five million Swiss francs.

00:39:27: that's a large biotech round for Switzerland And also shows how much capital is currently flowing into new approaches to cancer diagnostics and therapy.

00:39:36: Nuclideum develops what I hope i'm pronouncing correctly radio theranostics meaning compounds that combine diagnostics.

00:39:45: The company links tumor-targeting molecules to two different copper isotopes, Copper-Sixty One for imaging and Copper-Sixty Seven for treatment.

00:39:54: The idea is to first use structurally similar molecules, to identify exactly where tumours are located and then target treatment precisely at those locations.

00:40:13: than already approved traces, meaning molecules that make tumours visible.

00:40:28: Both programmes are now set to advance into Expanded Phase I and Phase II studies.

00:40:33: What I find interesting is that radiopharmaceuticals are currently considered one of the most attractive growth areas in oncology.

00:40:40: Nuclideum is deliberately focusing on copper isotopes because they should integrate well into clinical workflows.

00:40:47: The round was backed by existing investors such as Kerma Growth Opportunities Fund, Angelini Ventures Wellington Partners and Neva SGR As well as additional new investors.

00:41:00: According to the company, The Capital will be invested in three areas.

00:41:03: First expanded clinical studies for two lead programs.

00:41:07: Second development of a global production and manufacturing network for diagnostics and therapy.

00:41:13: And third development additional programmes for solid tumours.

00:41:17: Strategically, the goal is therefore to transform a clinically differentiated platform into a scalable radiopharmaceutical company with international

00:41:39: infrastructure.