In keeping with a current report on Greece’s startup ecosystem by administration consultants Discovered.ation, enterprise capital and enterprise debt have continued to develop within the nation, though its angel scene stays low-key.
Oddly sufficient, 2020 was a banner yr, with the sale of InstaShop to Supply Hero valuing the corporate at $360 million, making it the most important exit for a Greek-founded startup with operations in Greece.
The pandemic has meant Greek traders and startups understand that if they will work from wherever and rent from wherever, then Greece is just not such a foul place to be. And the Greek VC market advantages because the diaspora returns from the mega cities of the West. The nation’s startup ecosystem can also be attracting extra outdoors traders, who see low capital prices, an informed workforce and the transfer to distant working/hiring.
Bessemer Enterprise Companions, Perception Enterprise Companions and FJ labs are all backing Greek startups, and Microsoft accomplished its first acquisition within the nation.
Greek startups and traders are additionally extending collaboration with close to neighbors in Cyprus, Romania, Albania and Bulgaria.
Buyers in our survey mentioned they have been excited by sectors equivalent to infrastructure, agtech, cybersecurity, proptech, environment friendly software program, renewable tech and platforms aimed toward serving to the restoration of blue-collar jobs.
Had been they seeing inexperienced shoots after the worst of the pandemic? Sure, however nonetheless small.
Buyers are spreading their wings outdoors of Greece “as location turns into irrelevant and work-from-anywhere the brand new normal” though “the native ecosystem is at all times a precedence.”
Right here’s who we spoke with:
- Panos Papadopoulos, associate, Marathon Venture Capital
- Dimitris Kalavros-Gousiou, founding associate, Velocity Partners
- Aristos Doxiadis, associate, Big Pi Ventures
- Pavlos Pavlakis, principal, VentureFriends
- Yorgos Mousmoulas, associate, Metavallon
- Myrto Papathanou, founding associate, Metavallon
- George Dimopoulos, founding associate, VentureFriends
- George Karantonis, associate, Metavallon
- Katerina Pramatari, founding associate, Uni.Fund
- Apostolos Apostolakis, Associate, VentureFriends
Subscribe to Additional Crunch for entry to all of our investor surveys, firm profiles and different insider protection for startups in every single place. Save 25% off the cost of a one-year Extra Crunch membership by getting into low cost code GREEKSURVEY. Supply legitimate till March 31, 2021.
Panos Papadopoulos, associate, Marathon Enterprise Capital
What tendencies are you most enthusiastic about investing in, typically?
Infrastructure, agtech, cybersecurity, environment friendly software program.
What’s your newest, most fun funding?
Hack The Field (the most important cybersecurity playground on this planet).
Are there startups that you simply want you’ll see within the trade however don’t? What are some missed alternatives proper now?
Infrastructure software program is much from being optimized and leading to enormous payments. There’s a lot to be executed to leverage fashionable {hardware} structure to make issues cheaper and simpler to function.
What are you on the lookout for in your subsequent funding, normally?
Business individuals fixing their trade.
Which areas are both oversaturated or can be too laborious to compete in at this level for a brand new startup? What different kinds of merchandise/providers are you cautious or involved about?
Information administration/analytics is oversaturated.
How a lot are you centered on investing in your native ecosystem versus different startup hubs (or in every single place) normally? Greater than 50%? Much less?
Greater than 80%, we function in underserved market and luxuriate in preferential pricing.
Which industries in your metropolis and area appear well-positioned to thrive, or not, long run? What are firms you’re enthusiastic about (your portfolio or not), which founders?
Transport is an apparent one however we don’t assume enterprise returns will be achieved on this house.
Our portfolio firm Netdata is altering IT monitoring. Large OSS group and $30 million raised so removed from Marathon, Bain and Bessemer.
How ought to traders in different cities take into consideration the general funding local weather and alternatives in your metropolis?
Get to know the individuals first and the place they’re coming from (culturally).
Do you count on to see a surge in additional founders coming from geographies outdoors main cities within the years to return, with startup hubs shedding individuals as a result of pandemic and lingering considerations, plus the attraction of distant work?
Sure completely, massive costly cities will drain expertise to their peripheries (not going very far TBH).
Which trade segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise habits due to COVID-19? What are the alternatives startups might be able to faucet into throughout these unprecedented occasions?
Journey is the apparent reply.
We see a variety of alternative in software program rebuilding, consolidation. There may be really an excessive amount of software program duct taped collectively. It’s costly, troublesome to run and creates silos.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
It hasn’t modified something actually, we simply need founders to have the ability to use solely on-line channels. Firms with a {hardware} element are extra challenged however even they must innovate on help, which turns into a internet constructive if/when achieved.
Advise to startups: If you’ll find cash sweep it.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
Distant work may grow to be an awesome equalizer or not less than give extra alternatives to individuals dwelling removed from the massive hubs.
Some other ideas you wish to share with TechCrunch readers?
I believe investing in native/geographical ecosystems is just not a lot concerning the regulation/economies of the ecosystem however quite the tradition. Really I used to be engaged on an article about that I needed to share with TC 🙂
Dimitris Kalavros-Gousiou, founding associate, Velocity Companions
What tendencies are you most enthusiastic about investing in, typically?
Future of labor, enterprise software program, edtech, AI.
What’s your newest, most fun funding?
Intelligencia.ai — supporting drug discovery with ML and Large Information.
Are there startups that you simply want you’ll see within the trade however don’t? What are some missed alternatives proper now?
Edtech is a massively untapped market, particularly in vertical schooling and non-English-speaking content material.
What are you on the lookout for in your subsequent funding, normally?
Given the stage we spend money on (pre-seed and seed), we’re at all times trying to discover founders with a novel perspective, market insights and understanding.
How a lot are you centered on investing in your native ecosystem versus different startup hubs (or in every single place) normally? Greater than 50%? Much less?
Though we’re an Athens-based fund, we’re location-agnostic. Half of our portfolio firms are primarily based abroad, with the bulk being within the U.Okay., the place there’s a sturdy group of Greek expats and diaspora.
Which industries in your metropolis and area appear well-positioned to thrive, or not, long run?
Given the scale of the native market, which is comparatively small, I consider by actuality our nation is best positioned for B2B and enterprise software program ventures. The latest exit of RPA startup Softomotive to Microsoft (Could 2020) validates simply that. Two firms I’m enthusiastic about are Intelligencia.ai, which helps massive pharma firms predict and speed up medical growth of recent medication, and Netdata. Netdata is an open-source system for monitoring functions, servers, containers and gadgets in real-time.
How ought to traders in different cities take into consideration the general funding local weather and alternatives in your metropolis?
Greece has not too long ago began to get extra traction and headlines in worldwide publications, Softomotive’s exit as talked about have been excellent news for the native ecosystem, along with a couple of up rounds for Athens-based startups equivalent to TileDB, Plum and others.
Do you count on to see a surge in additional founders coming from geographies outdoors main cities within the years to return, with startup hubs shedding individuals as a result of pandemic and lingering considerations, plus the attraction of distant work?
Completely, as location turns into irrelevant and work-from-anywhere the brand new normal we count on extra founders to emerge from much less profound locations. Mind-regain may also be a big driver, as an increasing number of individuals will return to their dwelling international locations.
Which trade segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise habits due to COVID-19? What are the alternatives startups might be able to faucet into throughout these unprecedented occasions?
Journey tech is profoundly negatively affected by the pandemic and whereas it’s actually early to inform when and the way journey will reemerge, I see little alternatives there for the subsequent 12 to 18 months.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
For our post-revenue investments, money movement and its affect on runaway is the most important problem. Our pre-market, pre-revenue startups are much less affected. Fundraising for the subsequent spherical is a serious concern and problem for all. We strongly advocate continued monitoring and cost-cutting the place and if wanted. For his or her fundraising methods, we advocate elevating more cash, successfully extending their runway to 18-24 months. In instances the place their supreme fundraising state of affairs is not a viable possibility, we advise smaller rounds — emergency financing driver primarily by current traders — that may help the businesses till the market is much less risky.
Are you seeing “inexperienced shoots” relating to income development, retention or different momentum in your portfolio as they adapt to the pandemic?
We’re seeing fascinating areas for development as a few of our firms determined to partially pivot their core product providing or market phase focus. An important instance is MyJobNow an area blue-collar market startup. Their preliminary product was concentrating on blue-collar employees utilizing classifieds. Simply earlier than the COVID pandemic, the corporate launched a second product, staffing on-demand service for supply and last-mile transportation. The product confronted important and accelerated adoption by retail shoppers and e-commerce ventures as the necessity for last-mile supply was considerably and positively affected by the lockdown.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
Most founders confirmed a mixture of good reflexes, empathy and enterprise readability through the first months of the pandemic.
Some other ideas you wish to share with TechCrunch readers?
A key parameter that may vastly have an effect on the subsequent part of the native scene is for brand new first-time founders to have the ability to entice preliminary angel and pre-seed funding, as entry to €50,000-200,000 tickets continues to be problematic and restricted. We have to improve the funding numbers on this stage as a way to enlarge the footprint of the ecosystem and create a robust bottom-up startup funnel.
Aristos Doxiadis, associate, Large Pi Ventures
What tendencies are you most enthusiastic about investing in, typically?
I most prefer to spend money on radically higher options to very fundamental issues, equivalent to stopping illness, or meals provision, or rising productiveness in small companies. That is the social context of the fourth industrial revolution, and the place a number of the nice success tales of the subsequent 10 years might be.
What’s your newest, most fun funding?
It’s a troublesome alternative, however I choose 2bull MeDiTherapy. They’ve developed a novel blood take a look at for prognosis and analysis of aortic aneurysm. These is a quite common “silent killer,” that would solely be identified thus far by cumbersome and costly imaging strategies. As soon as the take a look at will get the required CE mark, we hope it is going to be extensively adopted as a screening technique throughout Europe and the U.S.
Are there startups that you simply want you’ll see within the trade however don’t? What are some missed alternatives proper now?
In agritech, I haven’t seen a lot that might assist small farms in tough terrain to extend productiveness, safe high quality or exploit distinctive area of interest varieties. That is doubtlessly a giant alternative in lots of rising economies in addition to within the Mediterranean.
What are you on the lookout for in your subsequent funding, normally?
Ideally, a instrument that may remedy a elementary manufacturing bottleneck throughout a number of industries, and that’s primarily based on years of analysis and has sturdy IP. An instance from our portfolio is Navenio, which has location answer for individuals and tools in massive indoor areas, that’s infrastructure-free and requires no bodily mapping. This has functions in hospitals, procuring malls, logistics facilities, railroad stations, and many others.
Which areas are both oversaturated or can be too laborious to compete in at this level for a brand new startup? What different kinds of merchandise/providers are you cautious or involved about?
We see too many functions for e-commerce and repair marketplaces. Most are copycats, however even when there’s a new idea someplace, community results and economies of scale are prohibitive for nearly all new groups.
How a lot are you centered on investing in your native ecosystem versus different startup hubs (or in every single place) normally? Greater than 50%? Much less?
By our mandate, we make investments solely in firms which have a considerable presence in Greece. This normally means an R&D middle and/or product growth workforce. Inside Greece we now have no particular choice for Athens, our dwelling base, however a lot of the good offers we see are there.
Which industries in your metropolis and area appear well-positioned to thrive, or not, long run?
Greece has sturdy analysis groups in biomedical science, and a lot of medical doctors with worldwide expertise and networks. I count on that well being tech and medtech might be a giant development sector. One other space is HR tech: Workable (a number one applicant monitoring system), Epignosis (studying expertise for company customers) and Bryq (a brand new bias-free candidate evaluation platform) have all began in Athens. The primary two have already got nine-digit valuations, whereas Bryq is simply taking off.
How ought to traders in different cities take into consideration the general funding local weather and alternatives in your metropolis?
The best benefit of Athens and another Greek cities is the variety of extremely expert Greeks of their thirties, who’re working in expertise or analysis in the remainder of Europe and want to return dwelling. Tech employers can simply entice such expertise if they provide an thrilling and/or well-paid job. These skilled individuals can prepare lots of the glorious engineering and science grads that come out of native universities. Nearly each firm in our portfolio has executed this. Funding local weather can also be quickly bettering beneath the present authorities, particularly for data industries, through numerous tax incentives, but in addition by encouraging the analysis group to speak in confidence to enterprise.
Do you count on to see a surge in additional founders coming from geographies outdoors main cities within the years to return, with startup hubs shedding individuals as a result of pandemic and lingering considerations, plus the attraction of distant work?
Sure, I count on that, and we’re already seeing this in Greece, as one of many locations of origin of such founders, but in addition as a vacation spot for expertise that’s leaving costly and crowded cities.
Which trade segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise habits due to COVID-19? What are the alternatives startups might be able to faucet into throughout these unprecedented occasions?
Journey and hospitality might be damage. Large Pi has not invested within the sector (by probability, not by design) however some excellent Greek groups have been in there, and inevitably some must transfer to different issues. Nice alternatives come up in distant provision of subtle providers (well being, leisure, schooling and in addition tools upkeep and restore).
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
There have been delays in enterprise gross sales, and within the provide chain for {hardware} merchandise. We’ve put aside capital to help longer runways, however past that we don’t anticipate a lot injury. Our recommendation to founders is to focus all assets on attaining targets that may allow them to lift the subsequent fairness spherical.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
The Greek authorities designed and applied in report time a logistics system for COVID vaccines, and, most impressively, a really user-friendly appointment platform for the vaccinations that’s working seamlessly. For a state that till not too long ago was very gradual and inefficient, this was an awesome leap forward and bodes nicely for future digital public providers.
Who’re key startup individuals you see creating success regionally?
All six VC groups that have been funded by Equifund in 2018 have executed an excellent job (Marathon, Enterprise Mates, Uni.Fund, Metavallon, Velocity and Large Pi) and have given a giant enhance to the ecosystem. Founders from Greek diaspora have been instrumental (e.g., Stavros Papadopoulos of TileDB, Vergetis and Skaltsas of Intelligencia, Masouras of Saphetor).
Pavlos Pavlakis, principal, VentureFriends
What tendencies are you most enthusiastic about investing in, typically?
Proptech, fintech and market fashions, inquisitive about each B2C and B2B startups.
What’s your newest, most fun funding?
Influ2 (Individual Based mostly Advertising startup — B2B SaaS).
Are there startups that you simply want you’ll see within the trade however don’t? What are some missed alternatives proper now?
Some traders draw back from capital intensive fashions e.g., that want a variety of debt fundraising and lots of want B2B SaaS startups. We like B2C so much, we like operational performs i.e., not pure tech essentially, plus we’re snug with fashions that require a variety of debt elevating in parallel to fairness.
What are you on the lookout for in your subsequent funding, normally?
Founders with international aspirations that execute nicely a scalable mannequin. The workforce and the market measurement are the 2 most necessary elements, after which quite a few different elements: competitors, timing/market development, short- and long-term defensibility/USP, and many others.
Which areas are both oversaturated or can be too laborious to compete in at this level for a brand new startup? What different kinds of merchandise/providers are you cautious or involved about?
Many markets/areas are oversaturated or can be too laborious to compete — this nonetheless can range on geography as nicely e.g., we now have seen some nice alternatives in LatAm for instance which can be “copy cats” of different fashions.
How a lot are you centered on investing in your native ecosystem versus different startup hubs (or in every single place) normally? Greater than 50%? Much less?
The native ecosystem is at all times a precedence. Additionally aside from native startups we’re on the lookout for Greek founders throughout the globe e.g., not too long ago invested in a U.S.-based Greek founder. Nonetheless given the scale of our fund and alternatives on the market we don’t prohibit our investments solely within the native ecosystem. So way over 50% has been within the native ecosystem (firm or founder) nonetheless as a result of we’re a world (European principally) VC an increasing number of of our investments are from outdoors of the native ecosystem.
Which industries in your metropolis and area appear well-positioned to thrive, or not, long run?
Blueground is a superb instance that we’re enthusiastic about. It’s a proptech portfolio firm of VentureFriends. It’s a Greek firm that we have been first institutional traders in. Blueground has expanded globally (13 cities in U.S., Europe and Center East) and raised greater than $100 million up to now.
How ought to traders in different cities take into consideration the general funding local weather and alternatives in your metropolis?
Athens and Greece normally is unquestionably an up-and-coming market. Every year there are extra and enormous success tales that encourage the subsequent era of entrepreneurs. Capital availability is not a big difficulty (given the presence of a number of funds) and Greek has nice and comparatively low-cost human capital — and nice climate 🙂
Do you count on to see a surge in additional founders coming from geographies outdoors main cities within the years to return, with startup hubs shedding individuals as a result of pandemic and lingering considerations, plus the attraction of distant work?
I don’t essentially count on this type of change i.e., extra founders coming from geographies outdoors main cities. Nonetheless Greek expertise — as talked about, comparatively low-cost whereas of top quality plus the surge of distant work — certainly has created extra demand and a rise in sure wages (e.g., builders).
Which trade segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise habits due to COVID-19? What are the alternatives startups might be able to faucet into throughout these unprecedented occasions?
Journey tech is by far essentially the most uncovered vertical. When it comes to alternatives on condition that startups are incumbents and digital options sometimes most verticals can current alternatives. Some apparent ones are edtech, supply/logistic options, e-commerce, and many others.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
No main change in our funding technique in anyway. Solely slight change can be to not pursue journey tech alternatives (although it depends upon a case by case foundation — we have been very shut in investing in a brand new startup on this sector amid the pandemic — they have been doing amazingly nicely 🙂 The recommendation to startups which can be impacted is to climate the storm by making an attempt to be cautious on burn on the one hand, however protect as a lot as potential and construct/work on issues they’ve now extra time to take action (housekeeping, product, and many others.)
Are you seeing “inexperienced shoots” relating to income development, retention or different momentum in your portfolio as they adapt to the pandemic?
In fact, many if not most of them! Aside from our journey tech startups all others have grown in 2020 and recovered from the primary main wave of the pandemic. Some particular ones from our portfolio even tippled in measurement (benefited from the pandemic) — that is the instance of InstaShop that was offered to Supply Hero for $360 million in 2020.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
Though 2020 was an especially unhealthy yr on a well being and financial foundation, life goes on and lots of family and friends are getting married, having infants. I grew to become an uncle for the third time, so there are some very completely satisfied and hopeful elements of life at all times.
Who’re key startup individuals you see creating success regionally?
Founders are by far an important ones, after which traders are necessary to help and finance them. However with out founders there may be nothing 🙂 Blueground, Beat, eFood, Workable, Softomotive, Skroutz, Epignosis and naturally InstaShop are some nice examples with profitable founders who’ve performed an necessary function in inspiring the ecosystem.
Some other ideas you wish to share with TechCrunch readers?
There appears to be a normal transfer from U.S. to Europe and from Europe to Japanese Europe, and from there to rising markets e.g., LatAm and Asia. Undiscovered and fewer aggressive ecosystems which can be on the rise, like Greece, are anticipated to play a extra important function within the years to return 🙂 We’re enthusiastic about this.
Yorgos Mousmoulas, associate, Metavallon
What tendencies are you most enthusiastic about investing in, typically?
Information/AI/analytics; renewable tech; principally B2B.
What’s your newest, most fun funding?
Valk, a safe platform for buying and selling unlisted property on the Corda blockchain.
What are you on the lookout for in your subsequent funding, normally?
Nice workforce; proprietary, defensible expertise; first indicators of traction.
Which areas are both oversaturated or can be too laborious to compete in at this level for a brand new startup? What different kinds of merchandise/providers are you cautious or involved about?
Marketplaces, B2C, meals supply, and many others.
How a lot are you centered on investing in your native ecosystem versus different startup hubs (or in every single place) normally? Greater than 50%? Much less?
About 50%. We additionally make investments closely in startups elsewhere in Europe (and past) having some connection to Greece, e.g., founders/traders/advisors, or having it amongst its goal markets.
Which industries in your metropolis and area appear well-positioned to thrive, or not, long run?
Maritime; something associated to knowledge and analytics.
Perceptual Robotoics (Kostas Karachalios)
Ferry Hopper (Christos Spatharakis)
Valk (Antoine Loth)
How ought to traders in different cities take into consideration the general funding local weather and alternatives in your metropolis?
It is a quickly rising ecosystem with fairly a couple of exits prior to now yr (together with our portfolio firm Assume Silicon, acquired by Applied Materials. We’re beginning to see the acquainted sample of second-generation founders from the first-generation success tales. Connections to a worldwide diaspora are a robust plus. Working/personnel prices are low for similar high quality.
Do you count on to see a surge in additional founders coming from geographies outdoors main cities within the years to return, with startup hubs shedding individuals as a result of pandemic and lingering considerations, plus the attraction of distant work?
Lots of people from the Greek diaspora are basing themselves in Greece once more, as they understand they will work from wherever; additionally beginning to entice worldwide tech employees as a consequence of favorable local weather, low prices, and many others.
Which trade segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise habits due to COVID-19? What are the alternatives startups might be able to faucet into throughout these unprecedented occasions?
Tourism; something requiring on-premises presence.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
We’ve continued to take a position on the similar tempo, are simply extra cautious/selective vis-a-vis impacted sectors e.g., tourism, transportation. We’ve supported portfolio firms as wanted with bridge rounds, and many others.
Are you seeing “inexperienced shoots” relating to income development, retention or different momentum in your portfolio as they adapt to the pandemic?
Sure. CreatorUp is doing tech-enabled distant video coaching and are seeing large income development beneath the circumstances.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
A few of our firms persevering with to shut follow-on rounds, regardless of the COVID local weather. Even in adversely affected sectors like tourism — that’s validation of the basic soundness of their enterprise mannequin.
Who’re key startup individuals you see creating success regionally?
The NBG Seeds initiative by Nationwide Financial institution of Greece is a serious organizer of occasions, get-togethers, and many others. serving to startups within the very early phases obtain some visibility — and never simply within the main couple of cities.
Myrto Papathanou, founding associate, Metavallon
What tendencies are you most enthusiastic about investing in, typically?
We primarily spend money on early-stage B2B firms and are sector agnostic. Over 80% of our portfolio is from firms creating proprietary [technology] primarily utilizing ML, AI, cloud, SaaS and analytics. Thus far we now have invested in well being, power, safety, logistics, media and enterprise software program and instruments firms.
What’s your newest, most fun funding?
We simply closed a observe on spherical led by Berlin-based Fly Ventures for one in every of our portcos, Higher Origin. The bio startup is Cambridge- and Athens-based and creating the world’s first insect minifarm that converts native meals waste into high-quality animal feed within the type of insect larvae. It’s answer combines automation and AI to duplicate nature’s recycling system. Following spectacular shopper demand, the current funding will speed up its operations and deploy their scalable answer to tons of of farms throughout the U.Okay. and the world. We’re very enthusiastic about what the corporate is creating and how briskly they’re progressing.
Are there startups that you simply want you’ll see within the trade however don’t? What are some missed alternatives proper now?
Europe and Greece particularly are superb locations to develop deep firms. The extremely certified and constant workforce, worth for cash engineering, availability of nondilutive finance and newly launched product expertise, enterprise acumen and entrepreneurial ambition are making it an thrilling place for B2B startups. I want to see extra startups tackling power and sustainability issues by means of expertise, I believe there may be alternative and the fitting momentum.
What are you on the lookout for in your subsequent funding, normally?
We’re on the lookout for articulate, extremely certified engineers with a enterprise acumen that may execute. Founders which have deep experience in an trade and have recognized the damaged parts that their expertise can disrupt.
Which areas are both oversaturated or can be too laborious to compete in at this level for a brand new startup? What different kinds of merchandise/providers are you cautious or involved about?
On the B2C house, the place we aren’t lively, it appears that evidently there are various groups engaged on very slim, area of interest issues. Even when profitable, a variety of these in my humble opinion are very laborious to create important VC-type returns.
How a lot are you centered on investing in your native ecosystem versus different startup hubs (or in every single place) normally? Greater than 50%? Much less?
We’re very centered on Greece and in addition consider there may be an incredible alternative within the diaspora. Individuals who left the nation final decade, gained expertise and know-how from different markets and are actually seeing the chance to start out their expertise firms again dwelling.
Which industries in your metropolis and area appear well-positioned to thrive, or not, long run?
We’re enthusiastic about Athens-based Useberry, Prosperty and Loctio.
How ought to traders in different cities take into consideration the general funding local weather and alternatives in your metropolis?
The panorama for expertise startups and funding in Greece has utterly modified the final three years. The worth of exits and unrealized worth quadrupled in 2020 alone and there may be nice momentum in the mean time. The presence of early-stage VCs on the bottom additionally helps when it comes to entry to preliminary finance, validation of the enterprise mannequin and its scalability and a world outlook of the companies. At Metavallon we’re completely satisfied to have already co-invested with 20+ VCs, native, regional and worldwide and over 40 angels, normally with vertical experience and strategic curiosity in our portcos. There may be nonetheless a variety of house. Lastly some firms created final decade are scaling up and including to the virtuous cycle of introducing beforehand lacking expertise, like product and biz dev and gross sales ops, available in the market. Your complete southeast of Europe is an missed market, which worldwide traders are actually waking as much as.
Do you count on to see a surge in additional founders coming from geographies outdoors main cities within the years to return, with startup hubs shedding individuals as a result of pandemic and lingering considerations, plus the attraction of distant work?
Sure, for 2 causes. First, the world is now flatter and entry to capital and expertise is location unbiased, so long as the expertise constructed has international relevance. The pandemic has in reality created a mini-brain acquire in Greece, with expertise professionals coming again right here and getting concerned in startups as founders, executives and traders. Second, entry to international expertise and environment friendly distant work are making it laborious to justify the prices primarily in human capital, but in addition peripheral like skilled providers and even actual property, that the standard hubs demand. So I count on to see a surge in firms developing from beforehand regarded over areas.
Which trade segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise habits due to COVID-19? What are the alternatives startups might be able to faucet into throughout these unprecedented occasions?
Hospitality and journey are in for the lengthy recreation when it comes to weathering the results of the pandemic. These sectors will want affected person capital and a prolongment of their enterprise plans. We have been impressed to see one in every of our portcos, Ferry Hopper, that runs a ferry reserving engine change its operations in a single day through the pandemic to give attention to native prospects and commuters versus vacationers. These firms will want fast reflexes and flexibility.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
We’ve had little affect in our funding technique as we didn’t give attention to B2C. In a approach, funding in very early phases is affected the least as time to a big prolong is spent on product and attending to product-market match. Founders have been initially anxious about their runway and entry to capital, a concern that didn’t actually materialize. There is a chance on the enterprise growth aspect for B2B firms as shoppers have extra urgency to digitalize, innovate and enhance efficiencies. We’re asking our firms to remain centered, preserve an ear to the bottom and their prospects and be able to adapt.
Are you seeing “inexperienced shoots” relating to income development, retention or different momentum in your portfolio as they adapt to the pandemic?
Apart from the primary two months of the pandemic, retention and development haven’t appeared so problematic. What we’re seeing in instances are longer cycles in B2B gross sales, particularly when shoppers are bigger firms in trade, well being or the monetary sector.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
Faculties reopened in Athens.
George Dimopoulos, founding associate, VentureFriends
What tendencies are you most enthusiastic about investing in, typically?
Proptech, fintech, B2C and journey tech.
What’s your newest, most fun funding?
Spotawheel, a web based used automobile gross sales enterprise! First workforce of this class to have expanded efficiently to a second market (Greece and Poland).
Are there startups that you simply want you’ll see within the trade however don’t? What are some missed alternatives proper now?
I want I used to be in a position to see extra fintech and particularly insurtech startups coming from Greece. Insurance coverage is an area that’s lengthy overdue for disruption.
What are you on the lookout for in your subsequent funding, normally?
Wonderful workforce, enormous market and a product that solves an precise downside i.e., the corporate to have the ability to provide a “must-have” kind of options not “good to have.”
Which areas are both oversaturated or can be too laborious to compete in at this level for a brand new startup? What different kinds of merchandise/providers are you cautious or involved about?
It might be actually laborious to compete for a {hardware} startup since we don’t have the required background data/experience and our purpose is to not deliver simply our checkbook on the desk. We wish to make the most of our community, know-how and previous expertise for each funding we’re being concerned.
How a lot are you centered on investing in your native ecosystem versus different startup hubs (or in every single place) normally? Greater than 50%? Much less?
As VentureFriends we’re fairly an outward-looking workforce having workforce members in different ecosystems additionally (U.Okay. and Poland). We are going to proceed supporting Greek startups since we will’t afford to overlook out on an incredible firm from our personal yard however we might be investing actively throughout Europe and opportunistically even outdoors of Europe.
Which industries in your metropolis and area appear well-positioned to thrive, or not, long run?
We’re massive followers of B2C firms. Greek founders have demonstrated that they will use the Greek market as a sandbox after which develop internationally to larger markets. Blueground (Greece, Turkey, UAE, USA) and Spotawheel (Greece, Poland) are simply two current examples.
How ought to traders in different cities take into consideration the general funding local weather and alternatives in your metropolis?
I wrote the primary verify as an angel again in 2011 to a Greek startup. Again then a spherical of $200,000 or an exit at $10 million was a giant deal. In the present day these spherical sizes or exits beneath $50 million usually are not even elevating an eyebrow. The aspirations and the boldness of Greek founders have modified dramatically, fueled by massive rounds and fairly notable exits which have taken place over the past couple of years. We consider that we’re solely a few years away from the primary Greek unicorn!
Do you count on to see a surge in additional founders coming from geographies outdoors main cities within the years to return, with startup hubs shedding individuals as a result of pandemic and lingering considerations, plus the attraction of distant work?
Probably not. With regards to the Greek ecosystem I believe that the primary 2-3 hubs will proceed to churn out the vast majority of thrilling and fascinating Greek firms. The pandemic might be only a unhealthy reminiscence in 1-2 years from now. The necessity to encompass your self with different pushed and succesful individuals and the apparent advantages that include this, will just about pull founders and expertise on the cities the place already there’s a vibrant/lively startup group. Within the case of Greece these cities are Athens, Thessaloniki and Patra.
Which trade segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise habits due to COVID-19? What are the alternatives startups might be able to faucet into throughout these unprecedented occasions?
Journey tech has been and continues to be of curiosity to us. As you possibly can think about it has been hit very laborious over the past yr. We do consider although, that as quickly as a significant share of the inhabitants will get vaccinated and life returns again to regular, journey will resume. First for leisure and finally even for enterprise causes. The individuals who can have managed to climate these troublesome 2019-2020 years will profit so much!
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
COVID-19 hasn’t actually impacted our funding technique. Investing in startups at seed stage is a fairly long-term kind of funding and dedication. Even when an organization as we communicate is going through some difficulties, the way in which we method it as a way to consider it’s by how the corporate will carry out in a extra steady atmosphere and/or in a gentle state.
Are you seeing “inexperienced shoots” relating to income development, retention or different momentum in your portfolio as they adapt to the pandemic?
Someway our portfolio appeared to have achieved a pure hedge. Certainly we had some firms that confronted some troublesome occasions whereas we had some others that have been rising by excessive double-digit percentages month over month. The obvious instance was InstaShop (groceries on demand), our UAE funding into Greek founders the place we noticed the corporate triple in measurement in a matter of months and finally bringing ahead by 2-3 years our exit to Supply Hero for $360 million.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
The exit of InstaShop to Supply Hero for $360 million for positive has been the spotlight of this yr for us. It just about launched us to a different degree each as a fund and to an extent as a Greek ecosystem because it has set the precedent for present and future founders and has cemented the assumption {that a} Greek workforce can certainly register a giant worldwide success.
Who’re key startup individuals you see creating success regionally, whether or not traders, founders and even different kinds of startup ecosystems roles like attorneys, designers, development consultants, and many others. We’re making an attempt to focus on the movers and shakers who outsiders won’t know.
The native workplace of Endeavor is unquestionably a bunch of people that somebody have to be related to. They’re very well-connected throughout the ecosystem of startup and with gamers of the standard financial system. They will actually add worth to a younger firm that’s searching for methods to get in contact with extra conventional enterprise individuals.
Some other ideas you wish to share with TechCrunch readers?
If somebody had advised me in January 2019 that finish of 2019 and the entire 2020-2021 we’d be coping with a pandemic, I’d most likely have tried to discover a method to get entry to antidepressants. Nonetheless right here we’re immediately kind of getting a glimpse of the sunshine on the finish of the tunnel. On a world degree, I believe that total governments and central banks have managed the state of affairs higher than anticipated and given the state of affairs we’re doing OK. On a extra regional degree, Greece beat expectations when it comes to managing the pandemic whereas supporting the financial system. We’ve had a wonderful efficiency through the first wave and now through the second wave we’re among the many international locations with the decrease instances/inhabitants. The federal government has launched 4-5 rounds of supporting initiatives whereas additionally making Greece a pretty funding vacation spot for direct investments. All these are very promising of what to anticipate from this nation when issues one way or the other normalize.
George Karantonis, associate, Metavallon
What tendencies are you most enthusiastic about investing in, typically?
We’re a horizontal fund understanding higher the B2B biz mannequin and focus in groups with a relation to Greece.
What’s your newest, most fun funding?
Are there startups that you simply want you’ll see within the trade however don’t? What are some missed alternatives proper now?
We want to have invested in startups lively within the huge blue financial system sector.
What are you on the lookout for in your subsequent funding, normally?
We’re on the lookout for extra skilled groups with full plans for aggressive market growth.
Which areas are both oversaturated or can be too laborious to compete in at this level for a brand new startup? What different kinds of merchandise/providers are you cautious or involved about?
Tourism/hospitality has became a problematic sector as of late — additionally a lot of the market discover it troublesome to take care of buyer traction.
How a lot are you centered on investing in your native ecosystem versus different startup hubs (or in every single place) normally? Greater than 50%? Much less?
Nicely above 50% as a result of nature of the funds beneath administration (80% comes from GR structural funds and the EIF). Exception is firms based overseas from members of the Greek diaspora, or they’ve/wish to construct some form of exercise in Greece.
Which industries in your metropolis and area appear well-positioned to thrive, or not, long run? What are firms you’re enthusiastic about (your portfolio or not), which founders?
Every part that has to do with logistics, distant collaboration and coaching, well being tech, in addition to fintech.
How ought to traders in different cities take into consideration the general funding local weather and alternatives in your metropolis?
An ecosystem in an early accelerating development stage with good high quality of technical expertise.
Do you count on to see a surge in additional founders coming from geographies outdoors main cities within the years to return, with startup hubs shedding individuals as a result of pandemic and lingering considerations, plus the attraction of distant work?
This feels like an affordable state of affairs.
Which trade segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise habits due to COVID-19? What are the alternatives startups might be able to faucet into throughout these unprecedented occasions?
Tourism/hospitality, marketplaces. I consider founders ought to focus now greater than ever on actual/wants and issues.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
The priority is how troublesome it could be to shut rounds on this enterprise atmosphere. up to now, we now have made it, however because the disaster is extended it turns into extra of a problem. The recommendation is to start out fundraising as quickly as potential with greater than typical reserves/runway.
Are you seeing “inexperienced shoots” relating to income development, retention or different momentum in your portfolio as they adapt to the pandemic?
Sure — SaaS/cloud firms, well being tech and digital productions firms are doing nice.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
That we managed to have an exit and shut one seed and two Collection A rounds throughout the pandemic.
Who’re key startup individuals you see creating success regionally, whether or not traders, founders and even different kinds of startup ecosystems roles like attorneys, designers, development consultants, and many others. We’re making an attempt to focus on the movers and shakers who outsiders won’t know.
The distinction right here is that for the primary time we now have 4-6 funds focusing in early-stage tech startups.
Katerina Pramatari, founding associate, Uni.Fund
What tendencies are you most enthusiastic about investing in, typically?
Tech-transfer and broader tech house, retail tech, AI, analytics, IoT, SaaS.
What’s your newest, most fun funding?
Kinvent.
Are there startups that you simply want you’ll see within the trade however don’t? What are some missed alternatives proper now?
Local weather, environmental sustainability.
What are you on the lookout for in your subsequent funding, normally?
Passionate workforce with sturdy IP that has generated (restricted) revenues to check the market.
Which areas are both oversaturated or can be too laborious to compete in at this level for a brand new startup? What different kinds of merchandise/providers are you cautious or involved about?
B2C, particularly in journey, tourism, tradition.
How a lot are you centered on investing in your native ecosystem versus different startup hubs (or in every single place) normally? Greater than 50%? Much less?
Greater than 80%.
Which industries in your metropolis and area appear well-positioned to thrive, or not, long run?
Retail, tourism, transport trade, agrofood. Firms I’m enthusiastic about: Kinvent, BibeCoffee, Flexcar, ExitBee, Tekmon, BeSpot, Cyrus, Nanoplasmas.
How ought to traders in different cities take into consideration the general funding local weather and alternatives in your metropolis?
Nice momentum, ecosystem actually rising, a variety of untapped potential particularly across the universities and analysis house.
Do you count on to see a surge in additional founders coming from geographies outdoors main cities within the years to return, with startup hubs shedding individuals as a result of pandemic and lingering considerations, plus the attraction of distant work?
Sure, already occurring.
Which trade segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise habits due to COVID-19? What are the alternatives startups might be able to faucet into throughout these unprecedented occasions?
Journey and tourism for positive. E-commerce and new service fashions from the constructive course.
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
We have been following a “cash-flow constructive development” technique already earlier than COVID and COVID had little affect on our portfolio. Some firms have been severely affected however turned this into a possibility by unlocking new income streams. The general sentiment amongst all our founders has been constructive. Complete portfolio revenues have elevated by 4x because the begin and 2x throughout COVID.
Are you seeing “inexperienced shoots” relating to income development, retention or different momentum in your portfolio as they adapt to the pandemic?
We foresee a 5x income enhance within the whole portfolio in 2021, primarily pushed by six firms.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
Vital contracts (of above $1 million worth) signed by two firms, time period sheet of above $1 million rejected, buy-out provide rejected, partial exit to a multinational consulting firm of a small portion for excellent worth, important traction getting into the U.S. market.
Who’re key startup individuals you see creating success regionally, whether or not traders, founders and even different kinds of startup ecosystems roles like attorneys, designers, development consultants, and many others. We’re making an attempt to focus on the movers and shakers who outsiders won’t know.
Apostolos Apostolakis, Marco Veremis, Sotiris Papantonopoulos, Aristos Doxiadis, George Karantonis, myself for my function round universities and the analysis house, Angeliki Karagiannaki, Spyros Arsenis, Roula Bachtalia, George Nounesis, Dimitris Tsingos.
Some other ideas you wish to share with TechCrunch readers?
Greece is now creating its startup ecosystem and there may be nice momentum within the nation. Aside from nice individuals with excessive expertise, massive smiles and resilience, the nation affords supreme situations for the brand new mannequin of working from dwelling (sea, solar, nice meals and, hopefully quickly after the pandemic, tradition).
Apostolos Apostolakis, Associate, VentureFriends
What tendencies are you most enthusiastic about investing in, typically?
Ardour financial system, higher UX and data-driven fintech merchandise, e-commerce enablement. Throughout all of the sectors we have a look at, I’m most inquisitive about fashions that take the friction out of on a regular basis life, whether or not that’s eradicating paper, automating or rising transparency.
What’s your newest, most fun funding?
Influ2 (a Ukrainian/US firm vastly bettering the enterprise b2b advertising and marketing course of), Byrd, Spotawheel.
Are there startups that you simply want you’ll see within the trade however don’t? What are some missed alternatives proper now?
A model of Kuaishou adjusted for Western markets could possibly be actually fascinating. Popshop is making an attempt within the US. Mortgages are nonetheless horrible, we haven’t seen a lot innovation other than higher brokers (like Habito). Ideally I need a service that is aware of my monetary well being, the property I’m shopping for and many others after which creates a product for me. No person has solved expertise sourcing and administration, the quantity of effort that goes into hiring, making use of for jobs and retention is insane.
What are you on the lookout for in your subsequent funding, normally?
Creation of a long run moat and scalability. The basic: sturdy founder-product-market match.
Usually we’re founder pushed: we search for founders who’ve wild ambition coupled with sturdy capacities and character.
How a lot are you centered on investing in your native ecosystem versus different startup hubs (or in every single place) normally? Greater than 50%? Much less?
We make investments round 50% in our native Greek ecosystem and the steadiness in remainder of Europe . One in all our workforce members is predicated in London and we glance to have workforce members in Poland and Spain/Portugal
Which industries in your metropolis and area appear well-positioned to thrive, or not long-term?
All of it depends upon the founders and their drive. Capital and expertise exist. I’m very enthusiastic about Blueground and Spotawheel as they’ve the potential to create sturdy European gamers.
What are firms you’re enthusiastic about (your portfolio or not), which founders?
Software program startups can begin wherever and when an area market is required Greece has a good measurement to function a take a look at marketplace for most use instances. Some startups I’m very enthusiastic about are Blueground (Alexandros Chatzieleftheriou), Plum (Victor Trokoudis), Spotawheel (Charis Arvanitis), Epignosis, (Thanos Papangelis) Skroutz (George Chatzigeorgiou).
How ought to traders in different cities take into consideration the general funding local weather and alternatives in your metropolis?
The native ecosystem is prospering. We at all times had well-educated and stressed individuals however now they’re additionally prepared to take the chance to startup. There have been some main successes these days: The sale of Instashop for 360mil$ (the most important greek startup exit thus far), was by far an important occasion that broke the glass ceiling and upped founder expectations. Moreover, the sale of Softomotive to Microsoft for round 150mil$, the CVC funding in Skroutz, and the sale of assume silicon to Utilized supplies have been additionally very constructive knowledge factors of a market that’s shortly rising.
Do you count on to see a surge in additional founders coming from geographies outdoors main cities within the years to return, with startup hubs shedding individuals as a result of pandemic and lingering considerations, plus the attraction of distant work?
I consider that sturdy startup hubs, normally, will retain their attract. Covid will go away finally and folks will nonetheless wish to stay and work close to different like-minded individuals. Nonetheless, there are two tendencies that additionally favor the emergence of recent startup hubs. Distant work, which is able to stay interesting for some individuals, is a development that helps the choice of individuals to maneuver to eg South Europe to work from there. On high of that, we now have the emergence of extra cities which have a vibrant native tech ecosystem. We already see that is cities like Barcelona, Madrid, Lisbon and these days in Athens the place there are actually many extra promising startups in a position to entice expertise. That enhance in native startup exercise creates alternatives for individuals to maneuver and mix the solar and tradition of say Athens with work at a promising startup and being round different like-minded individuals.
Which trade segments that you simply spend money on look weaker or extra uncovered to potential shifts in shopper and enterprise habits due to COVID-19? What are the alternatives startups might be able to faucet into throughout these unprecedented occasions?
Clearly, journey startups will damage. It is a chance for b2b startups to excel in content material creation and digital gross sales. Distant work means managing processes and tradition remotely. That creates a large spectrum of points to be tackled
How has COVID-19 impacted your funding technique? What are the most important worries of the founders in your portfolio? What’s your recommendation to startups in your portfolio proper now?
We by no means stopped being aggressive and make investments. There isn’t a unhealthy time for investing in nice founders fixing massive and clear issues. Equally, the recommendation to our startups is to think about what occurs after this brief time period disruption.
Are you seeing “inexperienced shoots” relating to income development, retention or one other momentum in your portfolio as they adapt to the pandemic?
We positively do. Aside from journey startups which can be nonetheless feeling the ache, most different firms have resumed their development trajectory.
What’s a second that has given you hope within the final month or so? This may be skilled, private or a mixture of the 2.
The principle humbling second for me was to see the grit individuals if affected startups confirmed through the darkish hours of this disaster throughout Spring 2020. As a second observe, the vaccine has given me hope of a return to normality.
Some other ideas you wish to share with TechCrunch readers?
We have been already dwelling in an period the place expertise was reworking, principally bettering, our lives. What we went by means of simply accelerated the tempo.
