Friederike Reinl
You hold a Bachelor’s degree in Corporate Management and Economics from Zeppelin University, Friedrichshafen. Why did you choose this degree?
My degree gave me a very broad insight. During the first year, in addition to Corporate Management and Economics, I was able to study Cultural Management, as well as aspects of Politics and Administrative Sciences knowledge. If you take a look at management and business overall, culture studies are very important. I also learnt a lot about communication and entrepreneurship. During my studies, I got in touch with many entrepreneurs, seed investors and VCs – names that still pop up in my work today.
Before joining Verve Ventures in 2020, you worked as a client services and relationship manager for multinational corporates with Credit Suisse. What was the most valuable skill you learnt there?
How to manage relationships. My contact person was either the head of the treasury or the CFO; people who know what they are talking about. You learn a high level of professionalism and get an insight into a broad range of companies. You work very closely with the companies; you are part of transactions that you work on for a month, before they are published in the newspapers.
Why did you decide to move into venture capital?
Firstly, I have long been interested in different business models. In my previous job, I worked with huge companies. The question in the back of my mind was always: “How do you become so successful?” I think the beginning is much more dynamic and exciting. Secondly, when you work with big, established companies, you are very much in the now. In contrast, venture capital gives you an insight into what the future might look like.
What does your current role as Investment Relations Associate involve?
I am one of the main contact people for private investors, supporting them during their journey at Verve Ventures. I manage the space between operating as a digital platform and offering personal contact. Our investor relations team is constantly striving to improve our processes, working on strategies and launching new products, so that we have the best offer for private investors on the market.
What misconceptions does some people have about investing in start-ups?
Many people are curious when it comes to start-up investing, with people actively signing up on our platform. There are some misconceptions; for example, that you can trade any share you are invested in easily, like any listed share, which is not possible unfortunately. Moreover, some people are not really aware of the risks of start-up investing – specifically, relating to liquidity or the timeframe. However, many of the people who use our platform are very experienced; they might be serial entrepreneurs themselves and have already invested in start-ups. They use our platform to enhance their deal flow, diversify their investments and get access to better deals than they would get through their private networks.
What makes Verve Ventures stand out as an investment platform?
We offer private investors access to professional venture capital deals. We only offer pre-analysed, pre-assessed start-ups, as ready-to-invest deals. With any investment opportunity, you have to look at it from two sides. On the one hand, you look at the company, the team, the technology and the business model. On the other hand, you look at the financing round. How is it structured? Who are the co-investors? Is the valuation feasible? What does the contract look like? You need a lot of experience to analyse and understand these two components. We offer you our experience and you pick the start-ups. With a 10k ticket, you get access to investment rounds with the same terms and conditions that only institutional investors would normally get.
Who should invest in start-ups?
Anyone who is interested. If you are interested in companies and new technologies, and if you are looking for an investment where you might have a more personal or emotional connection, you should invest in start-ups. If you get in there, if you invest in the start-up, you are part of that journey. In Switzerland, you need to qualify as a professional investor, so there is a regulatory hurdle.
In addition to having money to invest, do you need a certain appetite for risk?
Definitely. You have to be aware that venture capital is a risky investment. Risk diversification is key. Investors should consider making smaller investments in different start-ups at different stages, rather than putting all their investment budget into just one start-up. It is also an illiquid investment – the time horizon between your investment and an exit might be years. On average, in Switzerland, there are 7.5 years between foundation and exit, so your investment horizon is quite long.
What happens after an investor signs up on the Verve Ventures platform?
I check the investor’s application to see whether he or she qualifies as a professional investor, according to Swiss regulations. After investors get approved, they immediately have access to all the current investment proposals, which present the start-ups’ business model and the details of the financing round. From there, they can help themselves, starting the digital investment process. If you need they support, our team is here to help them.
How important is trust, when it comes to building a long-term relationship with investors?
Trust is the most important asset for every financial company. For us, it is especially important. Investors who sign up on our platform trust us to pick the best investment opportunities and to do our job correctly, supporting the start-ups and executing the investments. We are very proud that so many investors trust us on their venture capital journey.
How does Verve Ventures help investors pick the right start-ups for them?
In the end, each investor decides which start-ups to pick. This offers them the opportunity to build their own diversified start-up portfolio over time. We give them as much transparency as they need and present the start-ups in a structured way that allows them to make the best decision for themselves. On top of this, we seek to provide more information on start-up investing and venture capital overall; for example, through our webinars, which span topics such as exits, MedTech investments and software-as-a-service investments. We want to give investors the opportunity to learn with us.
Are more women starting to invest in start-ups?
When it comes to start-up investing, women are still in the minority, unfortunately. Yet the topic of women in venture capital – and female entrepreneurs more generally – has been getting more attention, especially over the past year. I would love to see more women supporting start-ups and am always happy to see that a woman has signed up on our platform. What I can do is try to empower women and invite them to join this space.
Why should more women give start-up investing a try?
For the same reasons as men – to be part of shaping a potential future. Start-up investing – especially with Verve Ventures, where you pick the start-ups yourself – is based on your own interests and rules on what kinds of companies you want to support. For example, if you decide to invest in sustainable companies or to support female entrepreneurs, this is where you can make your money reflect your values. It is the perfect opportunity to shape the future.
What feedback have you received from investors?
Investors really appreciate our platform, our structured process and our team’s supportive approach to investing. We try to make the investment journey as smooth as possible, but also as enjoyable as possible. Investors also enjoy learning about different start-ups and technologies with us. If you read our investment proposals, you will always have insights to share when out having a drink with friends.
What’s coming up for Verve Ventures, in strategic terms?
We are growing very rapidly. We opened offices in Paris and Berlin in 2021 and see many opportunities in the market. We will not stop bringing innovation to the venture capital space, which has not been so innovative over the past fifteen years.
What do you like most about working at Verve Ventures?
Firstly, meeting many people with different backgrounds who all share an interest in start-up investing. Secondly, learning about new technologies and having that insight into what the future might look like. I trust in technology and future developments. My favourite area is MedTech, because it improves people’s health. You know that, if the start-up is successful, the money you invest is going to change lives.