Friendsurance is one of these grown-up startups that absolutely nailed it when getting in big sums of investment. In the last year only, they raised 15,3 million US dollar in total by various investors led by Horizons Ventures, and on October 15th their co-founder Sebastian Herfurth will speak on our panel ‘How to deal with big investment’ – alongside founders from Orderbird (Bastian Schmidtke), Incapptic (Rafal Kobylinski) and Jobspotting (Robin Haak).
Friendsurance is the pioneer and the segment leader in peer-to-peer insurance. The company shifts small claims away from insurance companies to a network of insured people, meaning they reduce overall cost and thereby are able to make insurance up to 40% cheaper for customers!
We spoke to Sebastian to pick his brain about the challenges, top priorities, and step-by-step actions that startups are dealing with, when seeking big investment. Read on & learn!
What are the biggest challenges startups face when negotiating with investors, in your opinion?
‘I’d say some of the greatest Challenges are:
1) Aligning interest in the best way, you must be able to relate to those who’re investing in you.
2) Keeping the legal documents and the closing process lean, nobody wants this to drag out, it can makes things unnecessarily messy for both parties.
3) Finding a fair price. Guaranteed, you’re always going to want more than they’re going to give so be ready to meet people halfway.’
What do you believe are the top priorities for a startup who has just received a large investment?
‘I believe startups who’ve just received a large investment should:
1) Firstly, clearly define the milestones they want to achieve with the funding that they have received.
2) After that, they should create a realistic plan of how they’re going to achieve these milestones.
3) Thirdly, It is important not to get distracted by all the other opportunities that come with more funding!’
Based on your experience, what are the first steps startups can take to grow relationships with international investors?
‘For building up a good relationship it is crucial to:
1) Involve investors through regular updates, regularly email and message them. It’s key to maintain a good working relationship!
2) Face-to-face-meetings are equally important if not more. A lot more can be discussed in person rather than over email and the phone.
3) Ensure you ask them for their feedback.
Curious to learn more about how to get in big sums of investment? Come and check out the panel discussion on our Investors Day, it’ll take place at 15:00. Tickets you can find HERE, startups can apply for a free ticket HERE.