How do you make the "down turn" your opportunity & what you currently need to consider when fundraising - Jan Karnath, Timeless Investments

Timeless Investments founder Jan Karnath on the democratization of collectibles as an asset class, the current crisis and why he'll never start a regulatory startup again.

You can listen to the full podcast interview here.

"It's now about optimizing the car a little bit, instead of just looking at it going forward as fast as possible, like before.“

After an education at the elite US university Stanford, among others, Jan Karnath first founded the blockchain-based automotive platform "Gapless" and a little later the NFT platform "Timeless Investments". The latter allows its users to buy a share of collectibles.??

"We are trying to democratize an asset class that has been around for over fifty years. Until now, in fact, such investments were reserved for very rich people who knew their stuff and had enough money," says founder Jan Karnath, summarizing the mission of his start-up.?

Founded in February 2021, Timeless Investments "When we started, stocks and crypto were high and we grew relatively quickly at that time," the young entrepreneur sums up,

"We fractionalized a total of 200 assets. Recently, we made our first two exits with an increase in value of 84% and 200%, respectively."?

As for the impact of the current crisis situation on the future of his company, the founder is cautiously optimistic:?

"We don't see a huge impact right now, but of course that can change. Historically, collectibles have proven to be relatively crisis-proof. If you look at history, you see that tangible assets are relatively stable or even rising. So we've been lucky so far and actually seen a big increase in prices due to inflation."?

And yet, the current uncertainty in the market has not left Timeless Investments completely unscathed:?

"The NFT market has really suffered," explains Jan Karnath: "Unlike the art theme, the volatility has come through in this asset class just as it has in the stock market."

He calls the current market situation a cooling off period:?

"The change in the market is already very strong. After months where it was all about growth and speed, you now see a situation where everything is pricing in a bit more normally and deal structures are different," says the young entrepreneur. It's a fact that will have an impact on fundraising in particular:?

"The Fear of Missin Out is no longer there. Now there's much more of a look at how the models work and whether it's really scalable."

That said, he expects everything to slow down a bit:?

"Before, everything had to go as fast as possible. Now, more due diligence is being done," the founder sums up. A development that he doesn't necessarily consider negative:

"Maybe it's not so unhealthy that those times are over and now people are looking more closely."?

In general, he sees the current situation as anything but black:?

"As platitudinous as it sounds, every crisis is also an opportunity. If you manage to do well in your segment and your competitors aren't raiding or, in the worst case, even laying people off, then you now have a tremendous opportunity to secure your market and make a lot of headway. The principle that you can't overtake that many people when it's sunny and fifteen when it's raining is already true here."?

As for his own startup, he has adjusted growth plans to the market situation:?

"We switched from hypergrowth to moderate growth. In the process, for example, we looked very clearly at how much we are hiring now and reduced accordingly. Unlike before, it's now about optimizing the car a little bit, instead of just looking to move forward as fast as possible, as before."?

He advises other founders to keep a close eye on the market situation and adjust accordingly:?

"You just have to think about how to respond to market conditions. Of course, turning around is easier with 10 employees than it is with 100 or 1,000. The question you have to ask yourself as a CEO right now is how to align your company so that it comes through this well."

In addition, he strongly recommends talking to other founders about how to proceed:?

"You see a lot of people going through a downturn for the first time. For this reason, you should talk as much as possible with other people who have already been in the situation or currently are. That's where every minute is very well spent. You'll learn things in the process that no business degree will teach you."?

Last but not least, he advises startup founders to seek close contact with their own investors and to talk clearly and openly about everything. Having a trusted outside person can also help them look at the situation with a little distance: ?

"When you're super emotional and deep into your issue, it helps tremendously to have someone to talk to. Having that perspective is the very most important thing when you're in a difficult situation."?

He concludes by urging the startup scene not to get too rattled:?

"Just as everything wasn't as good then as everyone said, everything isn't as bad now as some media are reporting."

Curious?

If you want to find out why Jan Karnath will never start another regulatory startup and why he thinks you should never race into summer, listen in to the podcast.

You can listen to the full podcast interview here.