How a Red Bull Basement winner went from startup to success
Investor terms in this story
- Angel investor: someone who invests personal money in a startup during its very early stages.
- VC (venture capitalist): typically a firm that invests other people’s money in companies identified as having high growth potential.
- Unicorn founder: a privately held startup that is valued at US$1 billion or more.
Can you take us through the stages you’ve been through between 2019 – when you were starting to pivot your business to focus on B2B – and now? Let’s start with the pilots.
OK, so we had two pilots with Fortune 500 companies, which were the first steps into starting to focus our business on B2B. Both pilots were running really successfully, and we took the momentum to raise our first angel investor round to grow our team and streamline our product. However, it was my first fundraising attempt since we were funded by our own money and grants up to that point.
How much of a challenge was it to find those first angel investors?
As a first-time founder, it’s really hard to get the first investor on board because you don’t have a track record yet. Everyone wants to wait until someone else makes that step. It’s like a chicken and egg situation.
So how did it come together?
It was a process of several months, during which I learned the hard way to successfully pitch to investors. Most of the time, you initially have 15 minutes or half an hour with an investor. I learned that I shouldn’t squeeze every single detail about my business into that first conversation but instead focus on a few key points that really matter, like why you’re doing this, how big it can get, your traction so far and whatever shows that you will be able to grow substantially.
For me, it was always very important to find the right investors because when you bring investors on board, it’s like you’re marrying someone. So you’d better do your due diligence. I’m so glad that we did, because we only had great investors, and I see so many other startups struggling with the choices they made.
How critical did it get?
The first angel investor we had was very knowledgeable, very cool. We were also talking to other angel investors, but they were waiting for someone to make the first move. So I was brutally frank with her, saying, “I’m just waiting for someone to make the first move, but it could still take a while. And to be honest, I don’t know yet how I’m going to pay salaries in two weeks, but I’ll find a solution for that.”
And she was like, “I don’t need to wait for anyone else. I’m saying yes now. When do you need the money and where can I sign?”
I burst into tears! We ended up bringing on three angel investors in that first round, and having someone who is giving you €150K because they believe so much in your idea and your ability was a big step.
Bolzer gives a presentation at Red Bull Basement Hamburg in 2022
© Nika Kramer/Red Bull Content Pool
How did you go from there to securing venture capital?
The two pilots we had started with the Fortune 500 companies were so successful that they decided to roll them out, and we also had some other customers in the pipeline, so that led to our next funding round. That’s where we managed to bring VCs on board.
How important is that?
It was another crucial step in our journey because VC capital is like the holy grail – most startups never get to the point where a VC believes that they’re going to become the next big thing. We raised a round of €2 million from venture capital investors by the end of 2021 and also from unicorn founders who joined the round as well, which was huge.
What did that big round enable you to do?
Within four months, we grew from four people to 25, which was insane. Then we managed to close deals with some major companies like Deutsche Bahn, Cisco and ADAC, to mention a few. Working closely with those big players allowed us to push our product further and establish ourselves in the industry.
More inspiration for entrepreneurs
And now you’ve got more big news, right?
Yes! We got acquired by Hype1000, which is the market leader for anything around corporate audio in Europe. They’ve acquired us and are adding our solutions to their product portfolio to become a one-stop shop for anything around podcasting for a company.
How do you feel?
Really excited. We also had other offers, but for me it was important to sell to someone who is continuing with what we started and what we believe in. I’m happy to be able to hand over the company to an incredible team that is taking good care of our customers and can grow what we built even more.
Three tips from Sophie Bolzer
- Pare down your pitch: “The goal of your first conversation with a new investor is to get to another meeting, not to receive a check yet. So don’t get lost in details, but focus on key highlights that make them want to hear more.”
- The team is more important than the idea: “Your idea just remains an idea if you can’t execute on it. So make sure you find the right people with the right mindset and skills who can help you bring it to life or pivot into something better."
- Do your due diligence on potential investors: “It’s not only that investors can choose what startups they invest in. YOU can – and should – choose who you want to bring on board.”
If you look back over this journey, what was the most important thing that you learned?
One of the biggest learnings is that your team matters most. It’s so crucial that you find the right people you want to work with, who have the skills you need (or can develop them), and who can highly identify with what you’re doing – with your product, with your services, with your values. Most importantly, who also bring the right energy to the table.
And it’s your job to make sure that you take good care of them. Not only because employee turnover is really expensive, but because if your team is happy, your company will be much more successful.
Any examples of that?
Take Nadine Szentivanyi, who co-presented the idea with me at Red Bull Basement. She was one of my first hires and became a founding member of Audvice. She has always been super passionate about our mission and ready to get her hands dirty. She started out running all our marketing efforts while handling key accounts, to ultimately grow into becoming our product lead. She did a really amazing job in managing our engineers and developing the product further. She is now starting a freelance career focusing on product and performance marketing, and I can’t wait to see what she does next!
Bolzer and Szentivanyi winning the Red Bull Basement final in 2019
© Ryan Bolton/Red Bull Content Pool
Speaking of what’s next, what’s ahead for you?
I’ll be staying with Hype1000 until the end of October and will then give myself a little break until Red Bull Basement, which I’m excited to join as a mentor at the 2024 World Final in Tokyo in December.
I honestly just started to think about what my next professional adventure could look like. What I do know is that I want to join a company where I’m passionate about the product they offer and where I can contribute and provide value with my diverse skillset. I wore many hats during my startup journey and did everything from product management to sales to fundraising and recruiting. It would be great to apply all of these insights in a strategic leadership role.
So that’s what I currently have my eyes on, but I’m open for other opportunities as well.
As you get ready to move on to your next challenge, a new crop of entrepreneurs are looking to develop their ideas at Red Bull Basement. What would you advise them?
Red Bull Basement was a game-changer. We got so much exposure, which opened doors and gave us much more credibility. Also, there were so many people at our Final in Toronto – high-level executives, investors, other entrepreneurs and professional athletes – which really set the foundation for building a global network far beyond Austria.
So given all that, and especially because the 2024 application process is based on AI and probably won’t cost you a lot of time, for anyone thinking of applying, I would say seize the opportunity!