Fundraising in the Current Market Environment – Jan Karnath, Timeless Investments

About this episode

The current market environment presents founders with new challenges when fundraising. Jan Karnath, Co-Founder of Timeless Investments, shares his experiences and provides practical tips for fundraising during the crisis.

Alternative Assets as an Opportunity in the Crisis

Timeless Investments enables investors to buy shares in unique and limited assets such as rare sneakers, watches, or luxury cars starting from an investment of 50 euros. Particularly in uncertain times, alternative asset classes are gaining importance as traditional markets become more volatile.

The platform relies on "Digital Twins" – digital representations of physical assets. This technology solves several problems simultaneously: it significantly lowers entry barriers for investors and makes trading in luxury goods much more accessible.

Fundraising: Then vs. Now

The differences between the first fundraising round and the current situation are dramatic. Jan Karnath observes a significant shift in the VC landscape. While investments were made more loosely two years ago, investors have become significantly more selective and risk-averse today.

Different funding stages are affected to varying degrees:

• –Pre-Seed and Seed: The situation is particularly challenging here, as investors apply higher standards
• –Later Stages: Established companies with proven business models have an easier time

Practical Tips for Current Fundraising

Preparation is Everything

Founders must prepare for longer fundraising processes. What used to be completed in a few weeks can now take months. Careful preparation therefore becomes even more important:

• –Secure runway: Plan at least 12-18 months ahead
• –Sharpen your story: Your value proposition must be crystal clear
• –Optimize metrics: Investors look more closely at the numbers

The Relationship with VCs Has Changed

VCs are more critical today, but also more supportive. They want to see that founders can achieve more with less money. At the same time, they're willing to support existing portfolio companies more intensively.

Perseverance as Key to Success

In the current situation, mental strength is crucial. Jan Karnath emphasizes the importance of perseverance as a founder. The question isn't whether challenges will come, but how you deal with them.

Where Can You Find Support?

• –Peer networks: Exchanging experiences with other founders in similar situations
• –Mentors: Experienced entrepreneurs who have already weathered crises
• –Professional advice: Startup advisors can provide valuable perspectives

Viewing the Crisis as an Opportunity

Paradoxically, difficult times can also offer opportunities. Companies that can fundraise now often face less competition. Moreover, scarce resources force greater efficiency and sharpen focus on what's essential.

Success Factors for Successful Fundraising

1. –Timing: Start early enough – the process takes longer than expected
2. –Flexibility: Be ready to adapt your strategy
3. –Transparency: Honesty about challenges builds trust
4. –Focus: Concentrate on the right investors for your stage

Conclusion

The current market environment is challenging, but not hopeless. Founders who do their homework, remain flexible, and show perseverance can successfully fundraise even in difficult times. The key lies in viewing the crisis not as an obstacle, but as an opportunity to build a more resilient and efficient company.

Most importantly: prepare thoroughly, plan with longer timelines, and use the time to strengthen your business model. Companies that lay the right foundations now will emerge stronger from the crisis.