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The STEP USA program has opened many doors for us!

January 5, 2021

STEP USA is a 5-day startup boot camp launched and organized by the German American Chamber of Commerce New York (GACC NY). A highly successful program, it focuses on facilitating U.S. market access for young innovative companies and takes place four times a year in New York. It also exists in a virtual format. STEP USA prides itself on having created a network of more than 360 STEP USA alumni, around 65 U.S. incorporations, and 35 investment rounds. It is tailored to the needs of startups who intent to scale their business internationally. 

The GACC NY is featuring selected STEP USA Alumni, calling these founders “STEP USA Ambassadors”.

“The STEP USA program has opened many doors for us!”

Located in the heart of Hamburg, Nitrobox GmbH was founded in August 2012 and currently employs 40 people. In February 2020, the successful fintech company won Porsche Ventures and NeueCapital Partners as investors, raising a first institutional investment. Nitrobox is growing rapidly and has just won the Deloitte Technology Fast 50 Award – being one of the Top 10 growing software companies in Germany. In March 2019, CEO Henner Heistermann joined us for our STEP USA program in New York. Today he talks with us about their U.S. market plans and their most valuable take-aways from the STEP USA program in New York.

GACC NY: Henner – congrats on your investment! Tell us about what Nitrobox does and what makes you so successful?

Henner Heistermann: Good seeing you again – it’s been a while since we were in New York. Generally speaking, we are a fintech company located in Hamburg. We develop a SaaS solution that enables our enterprise customers to monetize digital business models such as subscriptions or pay-per-use very quickly. Nitrobox is a smart technology that combines all the necessary functions in a central platform and thus enables companies to handle their digital revenue and accounting processes from anywhere in the world – almost in real-time and very cost-effectively. Customers love about our product that they can integrate our software into their existing systems. We use state-of-the-art API interfaces that make it possible to quickly extract and process the necessary data from existing financial systems and providers.

GACC NY: How are things working out for Nitrobox in the current economic crisis?

Henner Heistermann: The Corona pandemic is taking its toll on all of us, both in our private and business lives – no doubt about that. In the beginning, our greatest concern was what impact the crisis would have on our customers. Because if they were affected, so would we. Some of our most important customers are well-known automobile manufacturers and mobility providers. And as we all know – the crisis had a massive impact on this industry. On the other hand, however, the crisis has boosted many digital projects in the automotive world.

GACC NY: Are there things going better for you than you expected?

Henner Heistermann: Oh yes, this also surprised us at first. Our customers’ digital projects, in which we had already been involved in the planning and expansion, all of a sudden experienced a real boost. Even additional projects such as online car sales were brought forward so that the crisis did by no means have a negative impact on our business. We are of course very pleased about this.

GACC NY: That’s really wonderful to hear. What do you consider the greatest success in your company’s history?

Henner Heistermann: About two years ago, we won Porsche as a new customer. Porsche recognized the importance of digital business models early on and saw our solution as a strategic building block for their company. During the initial talks, it very quickly became clear that we share the same ideas and visions. The implementation of various projects went very smoothly. It’s a great feeling that such a renowned company has chosen our product, believes in our vision and continuously handles further digital business models via our platform. In early 2020, Porsche together with a US venture capital fund invested in our company This is, of course, a fantastic success for the Nitrobox and a tremendous vote of confidence.

GACC NY: Looking back, is there ‘a lesson learned’ that you can share with us?

Henner Heistermann: Sure! For our product, we initially had a completely different target group in mind. At first, we didn’t offer our solution to the large enterprise companies that we count among our customers today. We were very active in the midmarket segment. But that was not as successful as we had hoped, because our solution suits large companies much better. Our product-market fit was simply not ideal. When we realized that, we had to completely realign our marketing and sales processes. That was a tremendous challenge, which we, fortunately, managed to master in a short time. In retrospect, we should have focused on large enterprises right from the start. That was an important learning experience for us.

GACC NY: Thanks for sharing this! Can you please tell us why the U.S. market is important for you?

Henner Heistermann: Well, in Germany, many companies are very reluctant to adopt new business models – although they should do so particularly right now. They still tend to rely more on so-called “good old German engineering”.

Companies in the U.S., however, are generally more open to new ideas. This is probably due to the fact that they recognized early on that new business models will establish themselves very quickly because customers are increasingly demanding flexible digital services. The most important thing on the US market is 100% customer happiness, a unique selling proposition that every company strives for: returning, happy customers who are then also willing to buy more.

Companies like Uber, Netflix, and Amazon are excellent examples of what the subscription economy has produced and made successful. We at Nitrobox are going a step further. We are enabling “pay by use” business models. Conventional American software products in that segment tend to usually be cumbersome, often too expensive, not very flexible, and designed for only one use case. Nitrobox, however, can be used worldwide in any language, in any currency, and with high flexibility to adapt – for any new business model. The best part is that there is no need for lengthy and cost-intensive adaptations to the client’s existing software systems.

As a result, we help our clients save up to 75% of their costs in the order-to-cash process – money they can invest in new digital business models. Many American companies are quick at starting innovative projects. In my estimation, Germany still needs about one to two years in this process.

GACC NY: Is that why you joined our STEP USA program in March 2019?

Henner Heistermann: Yes, absolutely. When we heard about the STEP USA program, my co-founder Sven and I were immediately thrilled. Within that one week I spent in New York, we got an excellent overview of the U.S. market. In the course of the STEP USA program, we got important introductions to potential partners and investors. When we came to New York, we already had the first customers using our product in the U.S. and it was clear to us that we wanted to enter the world’s largest market for business software in the medium term.

GACC NY: What is your most valuable takeaway from the STEP USA program as an entrepreneur?

Henner Heistermann: The STEP USA program was a great experience for us as entrepreneurs. We had the chance to learn firsthand what is important when establishing a subsidiary in the States, where the special challenges lie, and where to get support. A real highlight was the STEP USA Pitch Night at the “Deutsche Bank Labs” directly on Broadway in New York. As a comparatively young start-up from Germany, we had the unique opportunity to put all the experience and input we gained from participating in the STEP USA program directly into practice in order to convince potential partners and investors at the pitch. And, this much I can say, exciting discussions and contacts have developed, which now need to be intensified. We are therefore very confident about our business activities in the U.S. market.

GACC NY: In your opinion, what do startups generally underestimate when coming to the U.S.?

Henner Heistermann: I am convinced that the best way to be successful as a German company in the U.S. is by having a sustainable network with good local partners. I think that is underestimated by many entrepreneurs at the beginning of their U.S. business start. In all industries, the companies there are very well connected and form alliances to benefit from each other. As a German company, it is often not easy to find the right “door opener”. In addition, as a non-American, you first have to learn and understand the market, the culture, and the way of doing business. The U.S. market has many rules of its own and many unwritten laws that you have to know and understand. A local business partner can be very helpful and save you from unnecessary harm.

GACC NY: Is there a success story that has its roots in the STEP USA Program?

Henner Heistermann: Whenever we talk to potential customers from the U.S. today, the knowledge from the STEP USA program is of great benefit to us. In the course of the program, we have learned a lot of practical tools that work very well, such as: How do you pitch your company to an American investor? How does a conversation with an interested American business partner work? What legal hurdles could there be? This knowledge in the back of our minds helps us a lot in business conversations today and has already opened the door for more projects. I believe that without this important experience from the STEP USA program, we would have learned things the hard way much more. We are very grateful for this.

GACC NY: Wow, that’s wonderful to hear! So, what are your next steps?

Henner Heistermann: We have many plans for the upcoming year. Among other things, we will focus more strongly on the U.S. market. To this end, we are planning on opening an office in New York City. This is of course a big step for Nitrobox. Besides Hamburg, Stuttgart, and Cracow, New York would be our fourth location. That’s a big deal for us, and one in which we could certainly use some know-how and support. We also looking into strategically expanding our network in the United States, creating awareness for our company and our smart solution. We appreciate very much having the opportunity of being part of the STEP USA Ambassador Club. Thank you – that makes us very proud.

GACC NY: Henner, thanks so much for taking the time for this interview and all the best for Nitrobox!

Filed Under: Blog, Interview, NYC Ecosystem, STEP USA Ambassador, Success Stories Tagged With: alumni stories, business, GACC NY, innovation, internationalization, Interview, networking, startup, STEPUSA, VC

Thinking big: STEP USA inspired us to define a greater company vision!

September 24, 2020

STEP USA is a 5-day startup boot camp launched and organized by the German American Chamber of Commerce New York (GACC NY). A highly successful program, STEP USA focuses on facilitating U.S. market access for young innovative companies and takes place four times a year. It also exists in a virtual format. STEP USA prides itself on having created a network of more 300 STEP USA alumni, more than 60 U.S. incorporations, and 35 investment rounds. It is tailored to the needs of startups who intent to scale their business internationally. 

The GACC NY is featuring selected STEP USA Alumni, calling these founders “STEP USA Ambassadors”.

“Thinking big: STEP USA inspired us to define a greater company vision!”

STEP USA Ambassador Jennifer Schwade is CEO and founder of SHAPE ME GmbH. SHAPE ME GmbH currently employs 5 people and is located in Munich. In March 2020, Jennifer joined us for our STEP USA program in New York. Today she talks with us about her U.S. market plans, her most valuable take-aways from the STEP USA program, and explains how a pivot in her company’s history changed her as a founder.

GACC NY: Jennifer, it’s great to see you again! How are things working out for SHAPE ME in the current economic crisis?

Jennifer Schwade: Good to see you as well. I can’t believe how lucky we were to be able to participate in the last STEP USA program that took place just moments before the Corona crisis outbreak. We flew back to Germany on one of the last flights…The economic crisis has had its effect on us as well. Our business has a strong seasonal focus such as weddings or the spring and summer season. We, therefore, experienced a massive fallback in sales, and in addition to that, we had panic returns from customers who had purchased our products before the pandemic and now did not have a need for them anymore.

But over time, our situation has improved. We expected to have a long dry run during COVID. With small events and parties being possible again, our sales went up.

GACC NY: Jennifer, what does SHAPE ME exactly do?

Jennifer Schwade: We are the number one leading brand and online shop for shapewear in the DACH region. It’s a great story: When I attended a friend’s wedding, I realized that a lot of ladies did not really feel at ease wearing their fancy dresses. They did not seem to be truly self-confident. In the U.S. it is totally normal to wear shapewear and it was only at this wedding when I realized that shapewear wasn’t common in Germany at all. Just think of all the big red-carpet events, when famous stars are presenting themselves in dresses that are not easy to wear. They wear these dresses and shapewear with such confidence. That’s precisely the feeling I wanted to bring to Germany. So, in 2018, I decided to introduce an online shop for shapewear in Germany and it has been widely accepted since then. We have clients from Germany, Austria, and Switzerland, and of course, we are planning on expanding our business.

GACC NY: What do you consider the greatest success in your company’s history?

Jennifer Schwade: That’s easy to answer. In the past, shapewear was considered being unsexy, boring, and even embarrassing. With the introduction of SHAPE ME, we changed that perception and gave it a young, fresh, positive swing. I am very proud of that.

GACC NY: Looking back, is there ‘a lesson learned’ that you can share with us?

Jennifer Schwade: Absolutely! At the beginning of SHAPE ME, we focused on one niche product only. If we had done proper market research in the DACH region, we would have known about the negative connotation of shapewear. The market was not ready for it yet. So, we learned it the hard way and after burning a lot of cash, we had to pivot or else close the business down. We decided to go for the first option and changed the brand into a platform for shapewear: Spreading knowledge, finding cool testimonials, changing the image from ‘grandma underwear’ into a well-accepted lifestyle product that women use as automatically as their bras.

GACC NY: Thanks for sharing this Jennifer! What impact did the pivot have on you as a founder?

Jennifer Schwade: Needless to say, this was a difficult time in the company’s history, but also in my own life. You ask yourself many questions, decisions need to be made. Looking back, I don’t want to miss that time, it turned me into a more flexible and persistent woman. This experience also helped me during the Corona time, when sales broke down massively.

GACC NY: Please tell us why the U.S. market is important for you?

Jennifer Schwade: The U.S. is the birthplace of shapewear. Sara Blakely and her brand SPANX are absolute role models for both my company and myself. I admire her as a female founder, the way she opened up the market and introduced the product. The U.S. market is just so much further along when it comes to the social perception and acceptance of shapewear. It inspires us to keep going. We are aiming at changing the DACH mindset when it comes to shapewear and we have achieved our first success in doing so.

GACC NY: Is that why you joined our STEP USA program in March 2020?

Jennifer Schwade: Yes, absolutely! Taking part in the STEP USA program was very important. New York City is a hotspot for fashion and lifestyle. We were so happy to travel there and see these developments with our own eyes. The atmosphere in the Big Apple is rejuvenating, exciting, and full of energy. We needed that boost for our business!

GACC NY: What is your most valuable takeaway from the STEP program as an entrepreneur?

Jennifer Schwade: My biggest takeaway from the STEP USA program is the motivation and inspiration that rolled over us like a big wave. The U.S. business mindset is extremely different from the German one. After these two years of pushing our brand into the DACH markets, it was so refreshing to see different approaches to things and hearing from other companies how they handled certain situations. A program like STEP is great for any type of founder wanting to get new input. It’s not necessary to start your own subsidiary in the U.S. in order to take part in the STEP USA program. The most important aspect of building a successful company is exchanging knowledge with people from different fields, industries, and cultures. Learning from other people’s experiences is key.

GACC NY: In your opinion, what do startups generally underestimate when coming to the U.S.?

Jennifer Schwade: I guess, it is underestimated how different business is done in the U.S. and Germany. It begins with different networking methods. Germans tend to have a hard time opening up about business when they are at a reception for example. Americans, however, talk to many people they don’t know and they share their ideas because they want to get feedback on them. Germans tend to keep their ideas a secret. Also overselling seems to be ok in the states, whereas in Germany we stick more to reality and try not to overdo certain marketing methods. One has to be aware of the differences in order to really evaluate business potentials.

GACC NY: Could you share a success story that has its roots in the STEP USA program?

Jennifer Schwade: After completing the STEP USA program, we got back to Munich and were very inspired and motivated. We thought our brand-building methods over, adapted them, and built a new brand vision for the DACH region.  And let me also mention that the STEP USA program had a relaxing effect: After two years of extremely hard work, we simply enjoyed the atmosphere in New York, the meetings with industry experts and successful entrepreneurs and had a great time!

GACC NY: We are happy to hear that! So, what are your next steps?

Jennifer Schwade:  Our next big milestone is to expand business within Europe, though this is still two to three years down the road. First of all, we are continuing to change the image of shapewear locally while at the same time building SHAPE ME as a brand. We are in midst of the process here in Germany. So, once we are ready to go into new markets, we will take numerous aspects into consideration, such as cultural perception of shapewear, market size and female population ratio, competitors, cultural and language barriers as well as logistics. We are planning on raising our Series A round at the end of 2021. The U.S. serves us as a source of inspiration for the time being.

GACC NY: Jennifer, thanks so much for taking the time for this interview and all the best for SHAPE ME!

Filed Under: Blog, Interview, NYC Ecosystem, STEP USA Ambassador, Uncategorized

Blog post #2: The top 5 qualities you need as a successful German founder in the U.S.

April 1, 2020

It is the dream of many German startups to enter the American market, securing a huge venture capital investment with one of the top funding firms on the East or West coast and gaining significant market shares while growing business at home and overseas.

What do you need to get going in that direction?

1.      Resilience:

As a founder, you are used to being exposed to an enormous amount of pressure. That holds even more true in the U.S. American investors are impatient and demanding. Speed matters. A minute in New York goes by faster than 60 seconds in Germany. The difference between failing in America and Germany is that IF you fail – you fail faster.

However, failing overseas is not considered as a shameful or negative experience. Founders who failed have learned from their mistakes and usually come back stronger and wiser.

Investors are looking for serial entrepreneurs for this very reason. Be prepared to answer their questions on potential failures, be honest about them and sell your business mistakes as true learnings.

2.      Presentation skills:

I have attended countless startup pitches, both in Germany and the U.S. What always amazes me is that German startups many times have a more mature product and are using more sophisticated technologies. The trouble often is that German founders tend to be on the ‘underselling’ side. “We have created xyz, but it’s not perfect yet, because…” — let go of perfectionism! It’s about building meaningful MVPs and selling those successfully.

Another piece of advice on doing successful presentations: Make them fun! Americans love being entertained. Build in a joke about yourself or show an unexpected picture. Don’t only be the dry German number guy that neutrally talks about every technical detail of his product. Your audience will play with their cell phones to endure your ‘boring’ presentation. Ergo: The less people playing on cell phones while you present, the better your act! 😊

3.      Self-confidence:

American startups usually are excellent at selling whatever they are working on. It’s certainly helpful to keep in mind that children growing up in the U.S. are often holding presentations in their school classes. This is a very active part of the curriculum and their education. From a very young age on they tend to feel comfortable in front of audiences. This skill paired with a stable self-confidence comes in extremely handy, once they enter their professional lives.

So, be bold, make yourself heard, believe in your product… because nobody does it better than you do! A stable self-confidence is absolutely indispensable in the American business world.

4.      Know-how:

Easier said than done. It not only takes guts to enter a foreign market, but it also takes a tremendous amount of effort to gather all the needed information to really do it right.

So how to go about it?

Use existing resources. Many associations have company directories that will provide you with the names of potential clients. Another good idea is to contact our legal services department at the GACC New York for a first free consultation on all of your legal questions: legalservices@gaccny.com

Acquaint yourself with intercultural differences that play an important role in the business world. Don’t assume that what works at home works well overseas.

Be aware that marketing and sales are done quite differently in the U.S. Companies use a lot of social media, much more than in Germany. Twitter is a very successful tool over there, whereas Facebook ads are not really popular anymore. LinkedIn is much more than just a digital business card, it’s the network you use to do sales big time. American company websites engage their customers actively. They are about inspiration and the company’s vision.

Furthermore, American customers expect that you provide them with a phone number they can call in the U.S. to answer all product-related questions. Inform yourself on standard U.S. return policies.

5.      Network – the most important resource!

An intact business network is key to success everywhere, but it is absolutely indispensable in America. Networking in the U.S. is an art in itself. Prepare yourself for network meetings, bring your international business cards and have a complete and meaningful LinkedIn profile. Ideally, you have endorsements in your profile – it grants you more credibility. Make the best use of your time at the network gathering by answering these questions beforehand:

·        In order to call it a successful network meeting, what do I want to get out of it?

·        Who will be there?

·        Who do I absolutely want to talk to?

·        AND: prepare an airtight 30-second elevator pitch. Learn it by heart.

Approach your identified business contacts proactively. Engage them in a conversation on your product. Tell them why it is so exciting – but from THEIR point of view.

Nobody has a perfect business network. So build it! Improve your LinkedIn profile. Search the net for your competition in the U.S. and find out which investor has given them money. Connect with that person on LinkedIn. First step done!

Let’s do this and stay safe – Andrea

Filed Under: Blog

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