hub:raum – How a Multi National invests and adds value to a Startup
Stephanie Cherrin is an Investment Manager at hub:raum, an early stage incubator and an investment vehicle of Deutsche Telekom. She has been working in investments for the past 3 years and I had the chance to discuss investment opportunities, Israeli environment and the startup market with her.
Added value is the greatest value
In general, it is getting more difficult for the startups to get an investment, but Stephanie notices that at the same time, corporate investments are actually on the rise! According to her, hub:raum is super unique because the main motive for their funding is to add value to the consumers of this global telecom provider. Simply put, when a corporation invests in a startup, the startup creates added value for the corporate and, as Stephanie says, that is the most useful part about investing. Instead of just integrating the startup into their system, the large company makes an effort to engage their consumers through innovation and to make the relationship even stronger.
Why is Israel the place to be?
Knowing that the number of startups is growing each day, hub:raum funding program covers three main startup areas:
- Germany and Western Europe with an office in Berlin,
- Krakow based CEE region, and
- Israel with the office in Tel Aviv.
Stephanie says that there is no doubt that Israel is the place to be, especially because Deutsche Telekom and other big companies find this market highly accessible, cost efficient and big enough. In order to describe the expanding Israeli startup community, she compares it with a bubble gum: The bubble will grow as much as the European and USA market is growing!
Let’s connect the world, they say
Since the service of Deutsche Telekom allows people to stay connected in more than 50 countries, they are interested in investing in technology, which will enable them to “connect everything”! With various sectors within their corporation, the advantage is given to the field of IoT innovations (connective cars, homes, cities), cyber security improvement, and customer engagement platforms. Due to fact that people tend to dislike their telephone provider worldwide, improving the customer service is something they are very dedicated to.
Don’t be discouraged that raising an investment is getting harder. From the investor’s point of view, it’s harder only because the market is saturated and more people are competing for funding. The good news is that great ideas are still very welcomed and highly valued!