In this discussion, Nico Schoenenberger, part of the Investment Team at 10x Founders—a Munich-based fund specializing in early-stage B2B SaaS and Fintech investments—offers valuable insights on community-driven funds. He explains the art of decision-making for entrepreneurs and the strategic use of follow-on reserves. Nico shares lessons from his journey, emphasizing the importance of relationships in venture capital and how a Pan-European approach can foster entrepreneurial growth. Discover how local scout networks enhance understanding across diverse markets.
10x Founders fosters a community-driven approach, connecting successful entrepreneurs to share insights and resources tailored for early-stage investments.
The fund emphasizes a balanced strategy of leading and following investment rounds, adapting their approach to capitalize on exceptional opportunities.
By strategically allocating funds for follow-on investments, 10x Founders supports portfolio companies while minimizing dilution and maintaining growth potential.
Deep dives
Building a Community of Entrepreneurs
10x Founders was established to foster a strong community of entrepreneurs, which is exemplified by the Bits and Pretzels conference. The fund aims to connect unicorn founders and create a supportive network, where experienced entrepreneurs share insights and resources. This unique community grants fund managers a broader access to knowledge, capital, and opportunities that traditional models may lack. The founders' diverse backgrounds and their prior successes in building businesses contribute significantly to the fund's distinctive approach.
Transition from Angels to Fund Managers
The transition from angel investing to managing a fund introduces new complexities and responsibilities for investors. At 10x Founders, they leveraged their angel investment experience to make early-stage, high-risk investments, while adapting to their increased capital availability. Their strategy involves a split approach of leading and following investment rounds, allowing the fund to engage with companies even if they cannot secure a lead position. This flexibility offers the fund a chance to invest in exceptional opportunities while contributing to entrepreneurs' journeys.
Maximizing Follow-On Investments
10x Founders has strategically set aside a significant portion of their funds for follow-on investments, believing it is crucial to capitalize on promising companies. By maintaining a healthy balance of initial investments and reserves, the fund can effectively support their portfolio companies through various stages of growth while minimizing dilution. The emphasis on maintaining optionality allows them to back companies with strong growth signals and potential to become industry leaders. This proactive approach has already resulted in successful follow-on rounds and strengthening relationships with founders.
The Importance of Decision-Making in VC
Effective decision-making in venture capital requires balancing diligence with the ability to act swiftly in high-pressure situations. 10x Founders emphasizes the importance of building relationships with founders and understanding their business vision rather than adhering to rigid investment criteria. This flexibility allows fund managers to make well-informed, timely investments, even under uncertainty, which is often prevalent at the early stages. By fostering a culture of trust and open communication, 10x Founders cultivates strong bonds with its portfolio companies.
Personal Philosophy and Professional Growth
Nico Schoenenberger reflects on his journey in venture capital, highlighting the significance of building strong relationships and surrounding oneself with inspiring individuals. His personal experiences have shaped his understanding of success as a long-term process filled with setbacks and challenges. In his view, the venture capital landscape thrives on collaboration and nurturing connections over time. By focusing on passion-driven work, Nico believes individuals can achieve their goals while contributing positively to the entrepreneurial ecosystem.
In today’s episode, Andreas talks with Nico Schoenenberger, part of the Investment Team at 10x Founders, a Munich-based fund with €160M AUM in Fund I. 10x Founders focuses on early-stage investments (Pre-Seed/Seed) across Europe and the US, with a portfolio spanning sectors like B2B SaaS and Fintech. Notable investments include Ixana, magic, Ivy, Fernride, and cylib.
Nico dives into the dynamics of entrepreneurial communities that form funds, sharing insights on decision-making for entrepreneurs, the strategic use of follow-on reserves, and the advantages of round pre-emption. Drawing from his experience, Nico provides actionable advice for founders navigating early-stage funding and growth.
Together, we explore:
The story behind 10x Founders and its entrepreneurial community-driven approach.
Entrepreneurial decision-making and what it takes to succeed at the early stage.
How to structure follow-on reserves and why round pre-emption matters.
Lessons from Nico’s journey and the success stories from 10x Founders’ portfolio.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode