Venture Capital Partner of Project A discloses their investment selection strategies
Project A, one of the largest early-stage venture capital firms in Germany, was established in 2012 and has recently launched its fifth fund, increasing its total assets under management to 1.2 billion euros. The firm, known for its active involvement in helping startups grow, has a diverse portfolio that includes renowned unicorns such as Quantum Systems, Trade Republic, Sennder, Arx Robotics, Knwounity, and Re:cap.
Investment Focus and Criteria
Project A primarily invests in early-stage startups across various industries, with a particular focus on sectors where scalable digital business models are prominent. While specific industry verticals are not explicitly listed, typical Project A investments cover tech-driven startups including digital marketplaces, SaaS, consumer internet, and possibly areas like healthtech, fintech, and other high-growth tech sectors.
When founders apply for investment, crucial factors that Project A considers include a strong founding team with experience, commitment, and the ability to execute; demonstrated traction, such as evidence of product-market fit, customer growth, or revenue; a scalable business model with potential for rapid growth and market expansion; a clear market opportunity with large or growing markets and competitive advantages; and an innovative product or technology that sets the startup apart.
The Investment Process
The investment process for venture capital firms like Project A typically consists of six stages:
- Deal Sourcing: Actively finding startups through networking, industry events, accelerators, referrals, or inbound proposals.
- Initial Screening: Assessing whether the startup fits the fund’s industry focus, stage, and investment thesis.
- Due Diligence: Reviewing business plans, financials, market potential, competitive landscape, and the founding team’s background. Deeper analysis of customer traction, intellectual property, technology, and risks follows.
- Term Sheet & Negotiation: If due diligence is satisfactory, the firm offers a term sheet outlining investment terms.
- Closing: Legal documentation and transfer of funds.
- Post-Investment Support: Active involvement to help scale the company.
Additional Offerings
In addition to its venture capital activities, Project A has two other platforms for founders: the Project A Studio and the digital consulting agency A11. The Project A Studio supports founders in their idea generation phase, while A11, a digital consulting agency, helps startups grow.
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An interview with Anton Waitz, a General Partner at Project A for nearly a decade, revealed details about the investment criteria, industries invested in, and the investment process at Project A.
This overview synthesizes typical venture capital approaches together with known Project A investment activity patterns from recent funding rounds.
What industries could Project A potentially invest in, given its focus on scalable digital business models? Finland, healthtech, and fintech are some possibilities.
What additional services does Project A offer beyond venture capital investments? Project A offers the Project A Studio and the digital consulting agency A11, both aimed at supporting founders in their idea generation phase or helping startups grow.
