Andy Lurling
1. How do you stay attuned to emerging trends and opportunities in the startup ecosystem, and how does that inform your strategic decisions?
Investing in emerging and disruptive technologies means that ‘our world’ changes every quarter. Reading books and macro reports isn’t sufficient any longer as they are outdated before they are published. Therefore, we are very active in the ecosystem, going to events, reaching out and connecting with industry leaders, government bodies, leading knowledge institutes, colleague VCs, and many startups. We can foresee trends based on the approximately 1,200 decks we receive annually and the dialogues we have with the parties above.
We have a laser-sharp, impact-driven investment focus. We know what type of startups and scale-ups we are looking for; they need to use emerging and disruptive software technologies (AI, DATA, Blockchain, IoT, VR/AR, or Digital Security) to solve challenges within U.N. Sustainable Development Goals, Health and Well-being, Quality Education, Sustainable Cities & Communities, and/or Climate Action.
2. Can you share a memorable success story from your experience with a startup, highlighting key strategies that contributed to its growth?
I would say we have quite a few, so let me share two with you.
Our Climate Action strategy focuses on climate tech for urbanized environments as most of the problems arise from these environments. As UNICEF stated, half of the world’s population could be living in areas facing water scarcity by as early as 2025 if we do not act quickly. This is why we invested in HULO.ai. This startup uses AI technology to minimize the need for extensive physical water infrastructure checks, reduces water loss, and ultimately contributes to conserving one of our most precious natural resources. With LUMO, we have been active contributors to the ecosystem we invest in. This resulted in the early introduction of HULO.ai to an active consortium in Ethiopia to optimize the county’s water infrastructure. The company is now a supplier helping in the battle against water scarcity in the region.
Another example is our investment in Healthplus.ai. It is well-known that the healthcare system isn’t sustainable as it functions right now. For the Health and Wellbeing sector, our investments focus on prevention over curing. This is because the costs are getting way too high, and there is an increasing shortage of healthcare professionals.
"Have the courage to ask knowledgeable and experienced professionals questions and open up their network for you. You will be surprised how many people are willing to help you! "
Amsterdam-based Healthplus.ai uses artificial intelligence and existing electronic health record data to accurately predict each patient's infection risk. This is also possible for other post-surgical complications. Diagnosis and treatment started after a patient has developed symptoms; Healthplus.ai AI-driven risk assessment almost immediately after surgery enables more proactive decision-making, monitoring, and treatment. This is a major improvement to reduce the impact and cost of post-surgery complications. Infection is a serious postoperative risk for the 300 million patients globally who undergo surgical procedures each year. Data shows that as much as 25 percent, or 75 million people, are diagnosed with infections following surgery. For 25 million of them, these infections cause chronic issues.
We actively help Healthplus.ai and our other portfolio companies with our knowledge, experience, and introductions to our extensive network. In the case of Healtplus.ai, it saves an average hospital EUR 4 million in costs and less work for healthcare professionals, and patients recover better and faster.
3. What challenges do you commonly encounter in the early stages of a startup, and how do you navigate them to ensure sustainable growth?
The typical startup has a shortage of almost everything: professionals, 360-degree expertise, lack of contacts, lack of money, but they are full of energy, ambition, and willingness to succeed. With our LUMO coaching program, which is based on four pillars: Excellent leadership, Storytelling, Product Market Fit, and Follow-up investment, we actively support our portfolio companies. During the first 18 to 24 months of each quarter, together with the founder teams of each company, we select a few learning topics that we’ll focus on in the following quarter. We have an awesome pool of experienced and knowledgeable Venture Advisors, most with extensive entrepreneurial experience, who coach the founders.
This results in a steep learning curve for the founders, and we also notice potential problems and risks early on. We can act on identifying these problems and risks to the founders so that they can solve them and avoid making capital mistakes. As a result, all of our portfolio companies still exist and grow. Furthermore, we open up our networks and, therefore, the market for our portfolio companies, giving them a head start.
4. What qualities or characteristics are essential for individuals looking to venture into the startup ecosystem?
Startup founders need to possess several characteristics to be successful. Above all, they must be persistent and resilient because the development of their startup will never go as they anticipate. Making a startup successful is not a sprint but a triathlon with many obstacles. Furthermore, they must be coachable to incorporate good advice into their Strategy and execution. Lastly, it is important that they have good self-reflection and can prioritize the company above themselves. With each growth milestone achieved, they must ask themselves, am I the right person for this position? It's not a problem; it actually speaks to a good founder if he or she indicates at a certain point that another professional with specific knowledge and experience is better suited for a particular role.
5. What advice would you offer aspiring entrepreneurs considering launching their startups in today's business landscape?
I would say: just do it! But make sure that before you start, you prepare very well and answer a few questions: Am I solving a problem with my product and service? What is my unfair advantage as a company? Is the market large enough, and what is the competitive landscape like? What should the team look like, and whom do I want to start my company with as co-founders and first hires? Please know that Diverse teams, on average, perform better! What is my business model, who is my target group, and how do I reach them and convince them to become and stay a client? How do I finance the start of the venture? Always create a financial prognosis of 36 months. Lastly, have the courage to ask knowledgeable and experienced professionals questions and open up their network for you. You will be surprised how many people are willing to help you!
