Thoughts about HIGHTECH VENTURE DAYS 2016
Recently, 18.10.16, I visited one of the most valuable european startup events – HIGHTECH VENTURE DAYS 2016, which took place in Dresden, Germany. The objective was to explore ways of running hardware startups in Europe, and to understand, is Saxony the right place for startup immigration, or not. Thanks a lot to the event administration for provided opportunity.
To find answers, I took a short interview from Mr. Falk Becher, Senior Manager at Saxony Economic Development Corporation (Wirtschaftsf?rderung Sachsen = WFS). WFS accompanies domestic and foreign investors from the first idea through to the implementation of the investment project. But does it work for immigrating startup guys? For example, hardware and hi-tech projects are quite expensive, and most startup entrepreneurs do not have enough equity for complete financing.
AB: Mr. Becher, please tell about Saxony opportunities for startup immigrants.
FB: There are several supporting programs in Saxony, including investment grants and investment loans.
AB: But that programs are mostly for investors. Yes, in theory, it's possible to get a grant or a loan for new industrial setup, but you have to wait up to half a year before starting your investments, until your business plan is accepted. Without any guarantee. Half a year is an eternity for startups. And have you ever seen startups, building a manufacturing facility immediately at start?
FB: Well, it seems that it may not work for you...
AB: Is there a chance to get a loan from a bank? When I came to Germany years ago, it was necessary to have a stable income and permanent residence permit, that is hardly possible for new-coming immigrant.
FB: No chance. But you can try Kickstarter...
AB: A good promotion of crowdfunding campaign costs money (typically, 15 to 50K euro), and what is the reason to come to Saxony for a Kickstarter project?
FB: There is another option – Seedmatch – crowdinvesting resource for startups. And they are located in Dresden!
AB: Great! I'll try!
FB: And my advice for now – use the opportunity, catch as many people with red bands (investors were coded by red color) as you can, and speak about your project! You already have a good product to show! FlameTube looks really interesting, and I Like it! So, take a chance.
I followed his advice, and spoke to some of investors. Being a bit confused, I didn't know, what to tell, so, asked a stupid question: "Please, give me an advice, how to catch an investor for a hardware project?" Surprisingly, all of them were very friendly and attentive!
Events like HIGHTECH VENTURE DAYS are great places to find financial partners. But, to take a part, "just working" project is not enough. Startups are carefully selected. You have to be one of the best.
I like Saxony. Its capital, Dresden, is one of the greenest cities in Germany, providing high quality of life, with very good transport network and great infrastructure. If you have a lot of time and enough money, and want to make a business for European or international market – no problems. In case, if you initially have only 15K euro in your pocket, you (to be honest) have quite few chances, even with brilliant breakthrough ideas. I came to Dresden with few equity, then had to sale a part of my actives to invest in development and marketing. Now, the pilot product is ready for manufacturing, and the market looks much more understandable for me. Not so bad! :) I keep working hard, communicating actively, and trying different ways... (The secret of calm and positivity is here.)
So, my advice for startupers: make working prototypes, create your one-pager and elevator pitch as early as possible, and seek opportunities intensively. Develop your audience in social networks in advance. Build your community. Try to find people, who may be interested in your project. Speak about it as much as possible (online and at startup events). Learn on the go. Try to do maximum before starting your immigration. Is Saxony the right place to come with your startup? To be honest, I have no exact answer. It's difficult to compare to Russia (where I raised two businesses with no start capital), and I still have never been in Silicon Valley... So, you have to make a decision yourself.
This article is not complete. To let me to update it, please, write comments! I would be grateful for your information about more opportunities, another good startup locations, and, of course, for your smart advices and interest to my project.
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Alexey Boychenko (Alexey [at] Boychenko [dot] de)