STEP USA

Interview

“Forget Silicon Valley! New York is the best place for German startups to start their business in the U.S.”

 

About STEP USA:

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. It also exists in a virtual format. STEP USA prides itself on having created a network of roughly 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”.

“Forget Silicon Valley! New York is the best place for German startups to start their business in the U.S.”

STEP USA Ambassador Dimitri Gärtner is the CEO of Framen GmbH. The company was founded in 2018 and currently employs 8 people. Located in Frankfurt am Main, Germany, Framen offers a geo-local and context-sensitive software thus enabling customers to hyper-target their clientele. In March 2020, just before the outbreak of the Corona pandemic in the U.S., Dimitri Gärtner joined us for our STEP USA program in New York. Today he opens up about his U.S. market plans, his most valuable take-aways from the STEP USA program, and has a word of advice on raising money in the early days of being a founder.

GACC NY: Dimitri, it’s great to see you again. How is Framen dealing with the effects of the current economic crisis?

Dimitri Gärtner: As you know we were part of the last STEP USA program in March this year – just before the borders were declared shut. We made it back to Germany at the very last moment, that was quite an unusual experience. Just like many other companies, we are working hard to keep our business up and running in these difficult times. One of our greatest challenges is that our customers postponed promotion campaigns and we cannot generate the revenue we are used to. However, the upside is that many restaurants, bars, gyms, and hotel chains request our solution exponentially – to display public information to their guests and thus generating revenue with their screens.

GACC NY: What does Framen exactly do?

Dimitri Gärtner: Our company schedules advertising campaigns on TV screens of hotels, co-working spaces like WeWork, bars, or gyms. Framen specializes in targeted advertising through screens in semi-public venues. Moreover, we work with many business partners, such as hotels, restaurants, offices, coffee bars, fitness studios, etc. Our purpose is to develop hyper-targeted advertising tools to connect with the matching audiences more efficiently and enhance sales.

GACC NY: It’s really impressive that you were able to get WeWork as one of your customers. Tell us how you managed to get them on board.

Dimitri Gärtner: Back in the third quarter of 2019, we started the first conversations with WeWork’s European management. We have proven the win-win-win for more infotainment and relevant offers for the members, more revenue for WeWork, and access to the screens through our software.

GACC NY: Is that what you consider the greatest success in your company’s history?

Dimitri Gärtner: Yes, we are very proud of this success. But I am also really happy to have met my co-founders Alexander Gärtner, Sveatoslav Podobischi, and Magdalena Pusch. As a team, we function so well and are able to tackle the challenges we have. It is uplifting to have people around you who take our business as seriously as I do. And to have some fun too, when our work is done. I am absolutely convinced that only if you have a firm fundament, you can build a stable business on it. With regards to recent success, we are super happy that during the Corona time, a hotel chain bought our solution for their TV screens as well. We love enabling our customers to grow their business.

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

Dimitri Gärtner: Absolutely. In our early days, we were looking for an investor and talked to several ones. We came across a business angel who wanted to give us EUR 100.000 for 30% of our company. My advice to founders in the first phase is to bootstrap as long as you can and to think twice which investor or business angel you want to take in. Consider your options carefully. Don’t go for the first offer that comes along, unless it’s a fair deal for both sides.

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

Dimitri Gärtner: We are always looking for new clients and ways to bring our software to life. I absolutely wanted to check out Times Square in New York and contact as many New York-based hotel chains as possible. And since WeWork is our customer and we believe in the scalability of our product, we felt it was about time to target the biggest market in the world. However, we just did not quite know which steps to take when. It is a major decision to start a business in the U.S.  On the one side there are so many opportunities, on the other side, it can go wrong big time if you want too much too fast.

GACC NY: Is that why you joined our STEP USA program in March 2020? What were your most valuable take-aways from this 5-day boot camp in New York?

Dimitri Gärtner: Yes, absolutely! Taking part in the STEP USA program was a no-brainer for us, as we were approached by the German American Chamber of Commerce New York directly. Being located in Frankfurt, we were able to receive a 50 % funding from the federal state of Hessen. That was truly helpful. At this point, I want to say a big “thank you” to the IHK Frankfurt and the Wirtschaftsministerium in Wiesbaden! I hope that many more Hessen-based companies will make use of this funding option.

My biggest take-away from the STEP USA program is that New York is the perfect spot to start out your American business. So many times, founders think that only Silicon Valley is the place to be, but New York offers it all: an excellent investor environment, a city full of potential clients, business opportunities everywhere and exciting cultural scene as well as the “proximity” to Europe by being only six hours behind German time. That helps tremendously with doing business. It’s a very mature and fast-paced world and ideal to scale your business fast – if you have done your homework.

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

Dimitri Gärtner: I guess our cultural differences are underestimated. It’s quite interesting to see that Americans tend to be very enthusiastic when talking to you directly. For a German founder, it sounds promising and like an ‘easy sale’. But in actual fact, this is how Americans treat you in a polite and nice way, nothing more.

Another thing to keep in mind is that investment rounds in the U.S. are usually much bigger than in Germany. The reason for that is twofold: First of all, there is more venture capital in the market, and in general American investors seem to be ready to take more risks. And second, building up your business in the U.S. is very expensive. You just need more money, because rents, salaries and the costs of living are quite high.

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

Dimitri Gärtner: Sure! I was very satisfied with the meetings the German American Chamber of Commerce had set up for us in New York. Still to this day, we are positively surprised by their impressive business network. The scheduled meetings with German media agencies in New York proved to be a real success. We are still in touch with them and are planning our first joint projects.

GACC NY: That sounds great! So, what are your next steps in the U.S.?

Dimitri Gärtner: We are looking for more business contacts over there and would love to get more introductions to suitable partners. Once the travel situation allows for it, we want to be back to meet these leads in person. Of course, one day, we are also planning on opening a subsidiary in New York as well.

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

This interview helps startups get information on how to #scale #business #internationally. #STEPUSA #GACCNewYork #superchargeyoursales #b2bsales # b2bleadgeneration #leadgeneration #sales #scaling #usmarketentry #newyork #boston #b2b #networking #bestpractices

 

“The STEP USA program gave us important insights at the exact right moment – saving money and time”

 

About STEP USA:

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 4 times a year. It also exists in a virtual format. STEP USA prides itself on having created a network of roughly 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”.

“The STEP USA program gave us important insights at the exact right moment – saving money and time”

STEP USA Ambassador Naomi Owusu is the CEO of Tickaroo GmbH. The company was founded in 2011 and employs 31 people. Located in Regensburg, Bavaria, Tickaroo provides software as a service solutions (SaaS) for news and sports live storytelling. It also offers software development services for the German market, including designing, prototyping, development, and maintenance of the software.

Today Naomi Owusu talks with us about Tickaroo’s achievements, the importance of the U.S. market, and her insights on the STEP USA program.

GACC NY: Naomi, it’s a pleasure talking to you! How is Tickaroo getting through these economically challenging times?

Naomi Owusu: It’s good talking to you, too! I remember joining the STEP USA program in September 2017 and how excited I was to travel to New York. So much has happened in the meantime. The Corona crisis has had some effects on Tickaroo as well. Large sports events for example were not taking place which is a tough situation for our business. We lost significant budgets. As a consequence, we are extremely busy acquiring new customers in other segments such as public sector institutions and broadcasters as well as putting a lot of effort into supporting medium-sized businesses with digital transformation with our new brand madeby.tickaroo.com.

Needless to say, this means a lot of restructuring, reorganizing, and rescheduling in very, very short turnaround times. That can be stressful sometimes…

GACC NY: Yes, that sounds challenging indeed. But tell me, are there also things going well for you right now, maybe even better than you expected?

Naomi Owusu: I am happy how well everybody is working from home and how effective we can still be as a team. What we do to keep our business up and running is to really focus on our cash cows. We reflect on our actions more than ever to make sure that we use our resources in the best way possible. To keep in mind that every decision has an impact on your company’s success is an insight we all take to heart.

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

Naomi Owusu: I guess it is not the one ‘big thing’ that makes Tickaroo successful. I value all the small steps leading to success – ranging from excellent teamwork, interacting successfully with investors, using our networks and skills wisely. Every step leads to another step. Looking back, however, I am proud that we were able to expand our product range and offer more services to our clients. It took us some time to develop different products, but what we are offering is of great benefit to our customers. That’s really a satisfying feeling.

GACC NY: Looking back, are there things that you would have handled differently – a lesson learned that you can share with us?

Naomi Owusu: Absolutely. As a founder, you have to find the right path that works for you and your team. In the beginning, we focused our efforts on the development of our products and did not spend a lot of time or budget on marketing and sales. Looking back, I would change that. It’s important to find experts who talk about your product. My advice is to expand your brand and customer base on the market AND talk about it. Let people know why they need your product, get them engaged at an early point.

GACC NY: Thanks for sharing this, Naomi. Please tell us why the U.S. market is important for you?

Naomi Owusu: The U.S. market is one of the largest markets worldwide and we have developed products such as the Tickaroo Liveblog and our Tickaroo live sports Software as a Service. This is an extremely interactive real-time Cloud-CMS for high traffic media, sports, and broadcasting cooperations.  These 2 products are now at a point that they can be sold in the U.S. Furthermore, we have identified several relevant sources of revenue for Tickaroo over there.

GACC NY: Is that why you joined our STEP USA program in September 2017? What were your most valuable takeaways from this 5-day boot camp in New York?

Naomi Owusu: Yes, absolutely! I heard about the STEP USA program through my network and it was recommended to me. I must say that it exceeded my expectations by far. New York is an absolute hotspot for business and tapping into an existing network such as the GACC New York was extremely helpful. It was the guidance and well-organized meetings that made all the difference. It simply was the perfect opportunity to learn more about the U.S. market in a very short time.

My biggest take away from the STEP USA program? We learned how to start our business in the U.S. What was most insightful was how to approach investors and potential business partners with the information they want to hear. Marketing and sales start right there. This, I found, works quite differently from what we are used to in Germany. It was a true and important eye-opener!

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

Naomi Owusu: It is expensive to start a business over there. I guess what is underestimated the most is to put aside a budget for entering this huge market. As an already busy founder, you need to be prepared that your attention shifts from doing business at home to doing business in a foreign market on top of everything else. When we realized that, we decided to wait a bit because we have a fast-growing business in Germany and still lots of potential to grow our revenue at home.

GACC NY: Makes sense! Can you share a success story that has its roots in the STEP USA program?

Naomi Owusu: Sure! During the individual pitch training that we received as part of the STEP USA program, we improved and streamlined our original pitch deck a lot. We completely restructured it by focusing on the key benefits our clients have when using Tickaroo. We always tended to be very modest and careful when talking about our success, our numbers, or our pretty impressive partner and client network. It seems we were constantly more focused on getting things done and less ready to communicate what we have achieved over the years. After the STEP USA program, we really started TALKING and SHOWING what we have accomplished. That is an important part of being successful in business and I am very happy to call this one of the biggest take-aways from the STEP USA program.

We also completely worked our marketing and sales strategy over and that opened some important doors for us in Germany. I feel that with this fresh approach, we were on the winning side because we managed to close some valuable accounts for Tickaroo!

GACC NY: Glad to hear! So, what are your next steps in the U.S.?

Naomi Owusu: We are looking for more business contacts in the U.S. and we would love to get more marketing and sales training focused on SaaS and B2B business. At the moment, we are hiring: we are also looking for excellent salespeople in the U.S. That is what we need most right now.

GACC NY: Naomi, it was great catching up with you! Thanks so much for taking the time for this interview and all the best for Tickaroo!

Interview with STEP USA Ambassador Benjamin Zaczek, CEO of Salesviewer: “Contact is king!”

About STEP USA:

STEP USA is 5-day startup bootcamp 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 4 times a year. It also exists in a virtual format. STEP USA prides itself in having created a network of roughly 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”.

 

“CONTACT IS KING”

STEP USA Ambassador Benjamin Gregor Zaczek is the CEO of SalesViewer®, a sales-intelligence company located in Bochum, North Rhine Westphalia. Benjamin and his colleagues participated in the STEP USA program in September 2019, visiting New York and Boston.

SalesViewer® identifies anonymous website visitors and redefines the way of strategic business development. Companies worldwide want to know who is visiting their websites in order to target potential clients and find out about their specific needs. Zaczek and his team have developed a digital solution and introduced their product to the European market in 2011, enabling sales representatives to dig deeper and reach out to new leads.

Today Benjamin Zaczek opens up on his plans for the U.S. market, sharing his insights on the STEP USA program and why he believes in the power of networks.

GACC NY: Benjamin, great to see you again! How are you holding up in these economically challenging times? What are the greatest difficulties for SalesViewer® at the moment?

We have planned many (non-digital) activities in Germany and abroad for 2020, which have now been cancelled due to the corona crisis. These include trade fairs, speeches, customer trainings and other activities with face-to-face contact. Since a part of our business is based on face-to-face-contact, we also had to rethink our previous activities and find other ways of personal contact. I think that this was a spontaneous challenge, which our team nevertheless managed very well. On the other hand, we wanted to focus more on our US expansion in 2020, which we are now partially shifting to 2021.

GACC NY: Are there things also going well for you right now, maybe even better than you expected?

We have been very lucky in the past few months because many companies are currently looking for new ways to acquire new customers because of the crisis. And SalesViewer® provides a perfect solution for this need. Since the website is currently one of the few channels to get information about companies and service providers, SalesViewer® fits perfectly into the current situation. We were able to increase our customer growth significantly in the last months.

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

Well, first of all, we are extremely happy to have successful business relations and serve international customers like Stepstone, Linde or Statista.

After starting our business in 2011, we were able to secure market shares in diverse European markets such as Austria, Switzerland, United Kingdom, the Netherlands, and Poland.

And of course, we are very proud to have received several international awards and recommendations such as “OMR company to watch 2019”, “Newcomer of the year 2019” in New York or a listing in the official Google training materials as “Google recommended company” because of our innovative approach and international activities.

GACC NY: Why is the U.S. market important for you?

The U.S. market is one of the largest markets worldwide and, from our point of view, the most innovative market for digital products. It offers almost unlimited opportunities for companies like SalesViewer® and is a powerful growth engine for becoming a world leader of website visitor identification. After receiving more and more inquiries from companies in the U.S., we felt that the time had come to reach out and learn the ins and outs of that huge market.

GACC NY: Is that why you joined our STEP USA program in September 2019? What were your most valuable takeaways from this 5-day boot camp?

First of all, it was great that we could visit two amazing startup ecosystems – New York and Boston – in one trip, helping us establish contacts to new international business partners in both locations. Taking STEP USA, we had many important learnings about the U.S. market and the U.S. startup ecosystem. It was helpful to get compact information on the whole topic of how to really do business with American customers. Knowing the U.S. from vacationing there and doing business are two different things. STEP USA helped us understand the DNA of American decision-makers, American clients, and what to take into consideration in order to succeed there. We wanted to find effective strategies on moving forward in that promising market and luckily, we did. The GACC New York proved to be a strong partner.

The legal information provided was extremely valuable and will help us when we are ready to found our own U.S. subsidiary.

We were also surprised by how fast American clients react when they are interested in your product. They are much more willing to take risks or invest in something than their counterparts in Germany.

Furthermore, we were impressed with the mentors that gave workshops during our stay. They were full of energy and inspiration and that brought our business at home to a whole new spirit. We are still in touch with some of them.

And lastly, visiting MIT in Boston and several top-notch accelerators in both Boston and New York were highlights. We loved the STEP USA pitch night when we were given the opportunity to pitch SalesViewer® to a big New York audience at Hudson Yards on the 56th floor while overlooking a sunset over Manhattan…

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

I would say it is underestimated how hard it is to acquire new customers. Contact is king, that is what we can say! Tapping into existing networks, reaching out to neutral business facilitators is a game-changer.

What is also underestimated are the legal regulations around the topic of HR. Human resources are handled quite differently in the States. It was interesting to learn how to hire the people correctly, and to understand the differences in employment law for example.

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

Absolutely! We are super excited that we were able to win many new customers in the U.S. since taking part in the STEP USA program. We achieved this by presenting Salesviewer® during several organized networking events, got on stage and said who we are, what we can do for clients and what our goals are in the U.S. It was like a chain reaction and several interesting business contacts got in touch with us. Even in these economically challenging times, we are able to drive 5-digit revenues in the US each month.

The trick is to do your follow up after the trip. That is one thing I highly recommend: Follow up on leads – continuously! Make sure you get the introductions that you were promised. GACC NY: Do you want to tell us about the Newcomer of the Year award in New York?

That is a great result of STEP USA as well! After the STEP USA program in the fall of 2019 we were surprisingly nominated for the “Newcomer of the year award” in New York which we won on November 6th last year! It’s an award organized by the GACC New York, but an independent jury of economic experts makes the decision on who wins. We are immensely proud of that and feel that we have invested our energy and resources in the right way. It seems – with the right kind of preparation – our business activities in the States over the past 12 months can be called highly successful.

GACC NY: What are your next steps in the U.S.?

We are definitively planning on opening a U.S. office once the Corona crisis is over and the U.S. economy has recovered. During the past 2 years, we have checked out several locations in the U.S., looking at Silicon Valley, the Atlanta area, and the East coast. We are now focusing on New York – it is an excellent starting point because it offers one of the world’s most exciting startup ecosystems. And the density of clients is breath-taking. What we also like about the East coast is that the time difference to Germany is only 6 hours compared to the West coast with 9 hours.

GACC NY: Benjamin, lots of success for your endeavors and thanks so much for taking the time for this interview!