Once, U.S. venture capitalists insisted that international startups relocate to the U.S. before investing. However, the founders of Furo, three 28-year-olds, believe their choice to return to Germany has resulted in both financial backing and business success.
Furo, a company specializing in software for industrial battery storage systems, has successfully raised $4 million in funding, primarily from U.S. investors. Just a year after its inception, the startup has secured major clients, including the German rail service, Deutsche Bahn.
“We’re making faster progress in Europe than we would have in the U.S.,” states Furo co-founder Lena Sophia Voß.
Furo operates as a Delaware C Corp and recently completed a funding round led by U.S.-based TQ Ventures, with additional input from Neo and Sheryl Sandberg’s investment firm, Sandberg Bernthal Venture Partners. This experience aligns with insights from VC firm a16z, highlighting the benefits of maintaining connections in both one’s home country and Silicon Valley.
The startup’s link to Silicon Valley comes through the Center for Digital Technology and Management in Munich, which also participated in its funding round. This program, associated with their alma mater, TU Munich, helped Voß and her co-founders, Leonie Wagner and Simon Wittner, gain access to educational opportunities at institutions like Stanford and UC Berkeley.
Upon establishing Furo to assist industrial firms in lowering energy costs, they realized the urgency of the issue was more pronounced in Europe. Voß noted that the energy crises in Germany over recent years made this need particularly critical.
Initially, Furo considered tackling this issue from the U.S. and briefly operated under the name Lumera Energy while participating in Neo’s accelerator. However, Voß mentioned that the physical distance from Germany complicated their efforts.
“For an early-stage company, your network and proximity to clients are essential,” Voß remarked.
Faced with immigration challenges impacting tech workers, Voß emphasized that the trio’s decision to return home was intentional. Each co-founder had secure job offers from their previous employers, but they believed that Europe was a more advantageous environment for launching their energy startup.
“We chose to return to Europe not out of necessity, but because it’s a better time to establish an energy firm here,” added Voß.
Starting Furo in Munich proved to be “highly beneficial” for its growth, as their established network facilitated connections to their initial customers, along with valuable mentorship. “We have a clear idea of whom to contact when challenges arise,” she mentioned, emphasizing the advantage of proximity to technical universities for talent acquisition.
The cost of hiring engineers is also favorable, with Voß pointing out that salaries in Germany are substantially lower than in the U.S. She recounted how their U.S. investors initially questioned their ability to recruit talent at their budgeted salaries, which were indeed at the higher end for Germany. “Having a better budget goes a long way,” she stated.
Beyond salary, Voß noted that the quality of talent is comparable and there’s reduced competition with large tech firms, partly due to Furo’s connections through CDTM. “There’s a strong network in Germany and Europe that helps people recognize you,” she said.
While Furo is firmly rooted in Germany, the startup still nurtures its U.S. connections.
“We return to the U.S. three or four times a year for administrative tasks and to reconnect with our investors, as well as to meet potential new investors,” Voß explained.
This approach highlights that for startups settled in their home country, securing investments from the U.S. still holds significant value.
Pictured from left to right: Furo co-founders Lena Sophia Voß, Simon Wittner, and Leonie Wagner.
