Our CEO and founder Eric Weber shares his latest analysis, giving you insights into what’s happening in the startup and venture capital world - globally, nationally, and at the regional level. This is the second part. Check out the first part here.

Eric Weber, CEO and founder of SpinLab – The HHL Accelerator, shares his analysis of the global venture capital landscape. Covering international, national, and regional developments, his insights reveal the shifting dynamics of startup financing in 2024 and what founders and investors need to pay attention to.

90% of startups fail overall. The fact that many startups fail due to disputes within the team, a lack of capital, technical problems or low customer demand seems logical and is well documented statistically. However, deeper down and not immediately visible, it is often problems in the shareholder list (capitalization table or cap table for short) that can lead to the end. By providing resources and expertise, SpinLab, a leading European accelerator, helps startups not only to raise capital, but also to understand and effectively manage their cap table. This approach ensures that startups are well prepared to attract investment and strategically plan their business structure.

Applying for grants has the potential to significantly impact startups by providing essential funds and resources for their growth. However, the application process is often intricate, demanding, and time-consuming, requiring startups to create compelling narratives, meet specific criteria, and present accurate financial projections.

As a founder, you face a lot of challenges - from product development to team management to customer support. In this dynamic startup world, AI tools have become an indispensable ally for overcoming these challenges and propelling success. In this article, we introduce you to top AI tools for your startup.

Crises have been weighing on the global economy for almost two years. The energy industry in particular has been hammered by the Ukraine invasion as oil and gas imports from Russian sources are now realized with big (ethical) question marks. Rising prices, supply bottlenecks and alarmingly empty storage facilities have been the result, not only in Germany. Already in September 2019 – long before the war - the German government declared an “emergency plan” with three levels and reached level 2 (alert level) end of June 2022. At level 2, the goal is to fill gas storages by reducing gas consumption, e.g. through reducing the electricity production with gas power plants. For these reasons, the discussion on nuclear power has gained new momentum. Even the German Minister of Finance Christian Lindner - contrary to his statement from the end of 2021 - wants to rekindle a debate on nuclear power. But what does the situation actually look like and how realistic is a return to nuclear power really?

You have come across our Accelerator program, but you are not quite sure if it is suitable for your startup? We often receive questions from established startups asking whether they still fit into the program and what added value the participation has. In this article, we will show you 10 strong arguments why established startups should definitely apply for our free program. Let's go!

A cap table- short name for “capitalization table”- is a spreadsheet with an overview of who owns a portion of equity of a company and how this equity is distributed among shareholders. When entrepreneurs are looking for financing rounds, the cap table is one of the main files that investors will check to assess whether the venture has a healthy distribution of equity or not. Generally, investors prefer cap tables where all or at least the vast majority of shareholders will contribute to value creation in the future. In some cases, entrepreneurs with appealing and promising business ideas miss funding opportunities due to the so-called broken cap tables. This refers to an inadequate distribution of equity among shareholders or inacceptable terms and conditions, which generates misalignment of interests or interferes with an efficient business management. As a result, the startup losses the ability to raise funds or requires going through a painful restructuring process.

When preparing financial rounds, investors usually ask for cap tables (short version for “capitalization table”). Basically, this is a list or spreadsheet with an overview of all shareholders who have a participation on your company. Sounds easy? But in fact it isn’t, especially in later financing rounds. Why? Well, in the easiest case is the simple share distribution to founders and investors round by round, but in practice the deal structures are more complex. Typically, due to special rights and agreements, the allocation of equity shares deviates from voting rights and from money proceeds distributed after a cash event like an exit (e.g. a trade sale or an IPO). Very often it is complex enough to hire (and pay) external consultants and lawyers to reproduce the contractually fixed distribution and it is a frequent discussion point in due diligence processes on that way. Thus, it is worth paying some attention right from the beginning.

Especially during the current pandemic it would be very hard to live without some of our favourite products/services, that mostly appeared since the beginning of the millenium: Facebook, Twitter, Amazon, Spotify, HelloFresh - just to name a few.

Although these and other favourite products of generations x, y & z are very different in nature, they often have 1 thing in common: venture capital. Some would even argue that without venture capital financing some of these products wouldn’t even exist today. Nevertheless it is almost guaranteed that those products would be different or their wider adoption level would be less without venture capital.

But what exactly is venture capital?

While Venture Capital (VC) is among the most preferred and frequently used financing options for startups, many founders are not very familiar with the definitions of various venture capital contractual terms – sometimes even after an investment has already taken place. For the sake of fairness, these contractual terms are quite complex and thus contracts are quite long.

Since VC contracts are private agreements, individual arrangements and wordings are up on negotiation. However, there is a basic set of frequently used mechanisms that can be considered somewhat “standard terms.” Still, in contracts – as well as in the dozens of books, presentations and many blogs and comments on those – the language used is formal and based on legal standards.

Therefore, they are close to what founders will officially sign, but are still difficult to understand for beginners.