German angel investors and startups alike should have no fears finding their perfect match, as Leapfunder went live in Germany. The Amsterdam-based angel investor network has been paving the way for crowdfunding in the Netherlands for some time, and they are now determined to take on even bigger challenges.
Germany has a very mature venture investment ecosystem. And while this is true, a lot of it still is really ‘hand-made’, thus lacking transparency and standardization. Investors tend to have their own contracts and pooling structures. This is where Leapfunder comes in. By working with experienced German angel investors and lawyers, a consensus is being developed around pooling investors under German law. Leapfunder’s approach could make everything more predictable, thus creating a lot of value in the market.
Specialized and diverse cities
According to Leapfunder, there seems to be a little more cross-talk between the cities in Germany than in the Netherlands. They seem to need each other more, even though they are further apart geographically. This can be explained because of the very diverse and specialized natures of the cities. While one city could be very investor heavy, another one is very startup heavy. For example, Frankfurt is the financial center of Germany. Therefore you will naturally find more investors here.
Because of how common these specialized areas are in Germany, Leapfunder is hoping to reduce the perceived distances between cities, creating more synergy and overall more opportunities for the German ecosystem. By personally making contact with startups and angel investors, Leapfunder aims to be the enabler of deal scouting and transaction execution. German angel investors using Leapfunder can transact their deals within 3 minutes using convertible notes, a more convenient way of funding than equity funding. Angels can do this online, further reducing the perceived barriers between angel investors and startups in Germany.
Leapfunder is currently established in Berlin, as it probably is the biggest startup hub in Germany. While the city is an important engine of innovation, there are other, more local, factors in Germany. In an interview with Tienko Rasker, CEO and co-founder of Leapfunder, he said to us that it is their goal to also expand to the smaller ecosystems of Germany, too. In his opinion, these smaller ecosystems can’t be overlooked. This gets even more important when considering the highly specialized nature of German cities.
So what isn’t there to like? Leapfunder is an angel investor network that offers convenience and transparency. They enable deals from a distance to reduce perceived distances between the cities of Germany and meet personally with startups and angel investors. Finally, Leapfunder has a strong focus on local startup ecosystems. In my opinion, Leapfunder’s approach seems to be a promising standard for the matching of angel investors and startups.