STEP USA

Interview

The STEP USA program has opened many doors for us!

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!

“Change – it’s a chance, not a threat!”

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 more than 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”.

“Change – it’s a chance, not a threat!”

STEP USA Ambassadors Claas Blume and Thomas Vorsatz, both co-founders of Berlin-based Clous GmbH, join us for this interview on their current business situation. Being a Fraunhofer spin-off, Clous GmbH was founded in November 2019 and currently employs 6 people. In December 2019, Claas and Thomas joined us for our STEP USA program in New York. Today they talk with us about their U.S. market plans and their most valuable take-aways from the STEP USA program.

GACC NY: Claas and Thomas – it’s great talking to you! How are things working out for Clous in the current economic crisis?

Claas Blume: Nice being in touch again! It’s hard to believe that it has been almost a year since we joined the STEP USA program in New York. So much has changed in the mean-time. The mechanical engineering industry around the globe is suffering enormously from the COVID crisis. For us, as a newly founded company, it is already difficult as such to win new clients. But the fact that many of our potential customers have empty order books themselves makes our situation even more challenging. However, to end on a positive note, we expected raising venture capital for our growth phase to be more difficult at this time, but our investor relations work very well – even during this lockdown. This is definitively a good sign.

GACC NY: Thomas, what does Clous exactly do?

Thomas Vorsatz: The core of Clous is our technology, which automatically fragments complex CAD designs into smaller and independently solvable tasks and reassembles them after successful processing. This way, we open up completely new perspectives, especially for medium-sized companies in mechanical and plant engineering. A new type of collaboration makes it possible to optimize internal processes, to seamlessly integrate service providers from all over the world, and also to meet the new requirements for remote work.

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

Claas Blume: The sum of the many small successes is certainly our greatest success. We were able to create a great product and convince investors of our idea despite tough circumstances. We are particularly pleased that we were able to win APX, one of the leading accelerators, for our company.

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

Claas Blume: Absolutely! At the beginning of Clous, we trusted every spoken commitment given by investors or clients. Meanwhile, we have learned it the hard way that a commitment is only a commitment when the ink on the contract is dry.

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

Thomas Vorsatz: There are several reasons for that. First of all, the mechanical engineering industry in the U.S. is very strong and the market size is immense. And the industry is facing the need to digitize business as well. It is not a secret that the mechanical engineering industry is quite conservative, especially here in Germany. Even though the industry understands that something has to change, many companies refuse to see the need to adapt their business models. We feel that companies in the U.S. are much more open to new technologies and are seeing change as a chance, not as a threat.

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

Claas Blume: Yes, absolutely! It was the perfect opportunity to get to know the U.S. market in a compact way, to make first contacts, and to develop a strategy for a future market entry.

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

Claas Blume: Our biggest takeaway from the STEP USA program is the number of valuable contacts we gathered. We now know where to turn to if we want to found a U.S. subsidiary or if we have tax-related questions. We also met with investors, enjoyed U.S. pitch training, and learned a lot on how to shape our U.S. product-market fit.

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

Claas Blume: It depends on many factors, but in general I would say that the sheer size of the market and its competitiveness can be overwhelming in the beginning. It’s hard to get enough visibility if you only have a limited budget.

GACC NY: So, what are your next steps?

Claas Blume:  Our next big milestone is to expand business within Germany and get through the COVID crisis in good shape. We are also continuing to implement our market entry strategy. This means we are entering a specific market segment – the tool and die makers in Germany – providing them with great added value. If we have a certain relevance there and also get a 5/5-star rating, we will grow into broader markets. In addition, we are planning to get another business angel on board in March 2021 in order to leverage great financing from Landesbank Berlin (IBB).

GACC NY: Last question: On Nov. 7, 2020, Joe Biden won the election as the 46th U.S. President. Does that have any implications for your business?

Claas Blume: I hope that the election of Biden will improve the transatlantic relationship and above all that the U.S. as a deeply divided country will be able to overcome their current challenges. Stability, a reliable legal framework, and intact business relations are important factors for us once we are ready to take the step into the U.S. market.

GACC NY: Claas, and Thomas, thanks so much for taking the time for this interview and all the best for Clous!

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

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!

“Always get up one more time than you are being knocked down. It’s worth it!”

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 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”.

“Always get up one more time than you are being knocked down. It’s worth it!”

STEP USA Ambassador Daniel Tykesson is one of the founders of E-bility GmbH. Founded in 2010 in Remagen by the brothers Patrik, Daniel, and Philipp Tykesson, they have been passionately promoting e-mobility and started producing high-performance E-scooters at their home base. E-bility GmbH currently employs 75 people. In November 2019, Daniel and his brother Patrik joined us for our STEP USA program in New York. Today he talks with us about his U.S. market plans, his most valuable take-aways from the STEP USA program, and has a word of advice on how to deal with strong lobbies and opponents.

GACC NY: Daniel, lovely talking to you. How are things working out for E-bility in the current economic crisis?

Daniel Tykesson: Good to see you as well. We fondly remember the STEP USA program that we were able to join last fall. I wish that traveling would be as easy again as it was last year… The corona crisis had quite a grip on us, especially as it was this year’s plan to heavily expand into other European markets. On the other hand, we are delighted to see how strong the interest in individual mobility solutions currently is. In times when using public transportation doesn’t seem as secure as usual, there is an absolute increase in the need to get from A to B quickly, flexible, and “Corona-compliant”. Our E-scooters are highly sought after at the moment.

GACC NY: Daniel, what does E-bility exactly do?

Daniel Tykesson: In 2010, my brothers and I had a vision of creating a family business. It’s a company that we want to pass on to our children as well one day. Our dream has always been to shape urban mobility. So we started creating E-scooters that did not only have a cool retro design but would also relieve the pressure of traffic hotspots in big cities while using green energy. Up to this point, we have sold 10.000 units. Our goal however is to have more E-scooters driving on European roads than gasoline-powered ones by 2030. To achieve this, we are constantly developing our Kumpan designs and are researching new ideas and technologies for our customers’ needs. Our E-scooters are made with passion, sophistication, and excellent German engineering. We are truly proud of each and every one of them.

GACC NY: I can tell! It’s really impressive that you were able to acquire Scrooser GmbH a couple of months ago. Tell us how you managed to get this accomplished?

Daniel Tykesson: It started with a successful 2-digit million venture capital round that enabled us to acquire Scrooser. It’s also a young and dynamic mobility company but with a different focus: Scrooser is producing big-wheeled carving E-scooters that are very popular in the tourism sector and are a fun lifestyle vehicle, perfect for beach towns and for the last mile in urban areas. They’ve built a strong brand in the past years so we are very happy to be now joining paths and complement our assortment.

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

Daniel Tykesson: Yes, the deal was great for us. But for me personally, the biggest milestone we ever reached was on the day we went into serial production with our E-scooters. They are really top of their class and manufactured in Germany.

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

Daniel Tykesson: Oh yes! Every business is competitive and has supporters or opponents. Our products are emotional ones, the retro design of our E-scooters either appeals to people or not. We found ourselves in legal struggles with the goliaths of our industry and were strong enough to stand our ground. They were not able to sweep us off the market. It’s about perseverance. You always have to get up one more time than you are being knocked down. It’s very hard, but it’s worth it!

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

Daniel Tykesson: We are planning our next investment round and – needless to say – the U.S. is an excellent place for raising venture capital. Furthermore, we are constantly broadening our network and are on the lookout for new distribution partners. The U.S. is our best market with regards to retail, online sales, and shared economy strategies. In the meantime, we have founded our own U.S. subsidiary, which is truly exciting.

GACC NY: Is that why you joined our STEP USA program in November 2019? What were your most valuable take-aways from this 5-day boot camp in New York?

Daniel Tykesson: 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 Remagen, we were able to receive generous funding from the federal state of Rheinland-Pfalz. The Ministry of Economics in Mainz funded a group trip for start-ups from our federal state. We were a group of 11 companies and grew into a really tight team in New York. Up until now we are still in touch and help each other out. With the backup of the Ministry of Economics in Mainz, we are also able to tap into their networks more visibly and this is truly helpful. At this point, I want to say a big “thank you” to the great staff there! I hope that many more Rheinland-Pfalz-based companies will get the chance to participate in such a funded program. It’s a game-changer!

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

Daniel Tykesson: My biggest takeaway 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.?

Daniel Tykesson: Oh, there are many things. But I would say that in general the enormous size of the country as such is totally underestimated. You cannot conquer the market with one salesperson sitting in New York. My advice is to pick a certain target region and start from there. Get your product into the market. Build a network of dealerships and distribution partners there. Once you are successful in that one region, pick the next one and restart the process.

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

Daniel Tykesson: Absolutely! After having had a number of excellent meetings in New York, we were able to negotiate new importer sales contracts that resulted in us being able to kick off sales in the U.S., so thanks to you we really had a great jump-start!

We also got several introductions to potential venture capital investors that we are following up with currently. As we are looking into raising a new VC-round, the STEP USA program came for us at the exact right time.

GACC NY: We are happy to hear that – great! So, what are your next steps in the U.S.?

Daniel Tykesson: We are planning on being back in New York and the Valley as soon as the situation allows for it. Our focus is to expand our partner and investor network. We are definitively ready for the next step!

GACC NY: Daniel, thanks so much for taking the time for this interview and all the best for E-bility!

“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!