SPECIAL EDITION NOAH BERLIN 2017 June 201 7 Unicorns on the loose The digital elite meets at the NOAH conference in Berlin ESSAY BLOCKCHAIN PITCH Mathias Döpfner on digitization and how it is changing the world pages 2/3 For some a fleeting hype, for others the future of the Web page 8 How start-ups win over investors with strong presentations page 29
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2 NOAH BERLIN 2017 DIE WELT | JUNE 2017 Berlin’s futuristic Tempodrom is the location of NOAH. The meeting of the digital elite under the unicorn logo this year boasts the highest number of wnicorns ever to gather at a conference. wnicorn is a paraphrase for innovative companies with a market evaluation of more than one billion wS dollars One or zero Digitization is as big as the invention of writing was at its time. It's up to us to make it benefit humankind in the best way possible. But that won’t be simple P Pinnacles in human achievement are not a seldom oc- currence in the times we live in. Cars that drive with- out a driver are one example. Scientists are also confi- dent that, with the help of computers, they will be able to detect cancer far earlier, and one day even find a cure, thus making the disease a thing of the past. Electric airplanes regularly take off from Munich on test flights, and knowledge is spreading across the world faster than ever before. Facebook connects al- BY MATHIAS DÖPFNER most two billion people to make up one gigantic pub lic, while Google helps us find answers for most ques- tions in a fraction of a second. Devices are being deve- loped that will help people understand every language, and the likelihood of a human mission to Mars increa- ses every day. Recently, Microsoft billionaire Paul Al- len unveiled the biggest airplane of all time. Once in the air, it will be able to shoot rockets into space. Tech- nology is becoming smaller and smaller, and at the sa- me time more efficient. The mainframe computer of yesterday fits into our pockets today. And it is coming closer and closer to our bodies, in watches and in glasses, for example. The chips of tomorrow will be implants. And a great many company founders spend their time re- lentlessly trying to convince us of one new idea after another. From bike delivery services to online univer- sities, from flying surfboards to renting out our apart- ments to paying guests. There are many ingenious ide- as out there. Which is why some founders become very rich. In the best case scenario – which often occurs – their ideas help perpetuate a trend we have been see- ing over the last decades: The world is becoming a bet- ter place. Child mortality rates have been dropping, as has poverty among the aged. More people have enough to eat and drink, and life expectancy is increasing. These are all trends that digitization is making a consi- derable contribution towards. And yet, it has lost its sense of innocence in the past years. Anyone wanting to see a positive new world in future will have to fight for it. This will be necessary, first of all, because nearly every technology can be used for the exact opposite of its originally intended purpose. During the Arab Spring, Twitter and Facebook helped make the up- surge of democratic forces possible. But only weeks la- ter, the authoritarian governments demonstrated that, because of the great role digital communication played in the protests, it was also very simple to wea- ken these. All the national communications compan- ies had to do was simply pull the plug. This is a stan- dard strategy nowadays in authoritarian states facing crisis. States from Turkey to the Middle East coun- tries, right up to those in power in Africa or South America, switch off services like Twitter or Facebook, or use them for targeted manipulation or to spread disinformation. Even more perfidious are dictator- ships and their secret services, who leave the Net open, but only so that they can obtain more data about their citizens. China is working on a system that should ensure, by 2020, that a number will be calculated for every citi- zen supposed to represent their “mentality of hones- ty”. This is nothing more than the assessment of so- meone’s personality, character and loyalty to the re- gime in a dictatorship. And it is one way in which the products of digitization mutate from being a tool of freedom to become an efficient surveillance method in anti-democratic regimes. Some start-up ideas have such enormous conse- quences in society, politics, the media and culture that some of the fundamental achievements of the modern western world are being undermined, even the suc- cessful combination of the social market economy and the democratic state. Facebook, for example, seemed like a good idea to Mark Zuckerberg for digitizing the traditional yearbooks at American universities and networking students with one another. And Amazon began with the simple idea of bringing new books to the customers, instead of them them having to go to a I A D E M G R E B N E S E H / R O L Y A T N A D I NOAH Berlin 2016. Mathias Döpfner, CEO of Axel Springer SE, during a panel discussion with the founder of Business Insider, Henry Blodget (r.)
DIE WELT | JUNE 2017 NOAH BERLIN 2017 3 Meeting of the Internet sector The Axel Springer NOAH Conference Berlin is taking place from June 22 to 23 at the city’s Tempo- drom, bringing together leaders from the Internet sector with the aim of pushing Europe’s digital economy. The conference offers entrepreneurs, investors and multipliers a platform on which they can exchange ideas and network. At more than 180 talks and discussions all about digitization, disruptive challengers will be encountering estab- lished market leaders from very different sectors. NOAH this year boasts the highest number of Unicorns ever to come together on a conference stage. Together, a mere eight companies from the Fortune Unicorn List will bring a value of more than 23 billion US dollars to the stage of Berlin’s Tempodrom. Unicorn is used to refer to young, innovative companies with a market evaluation of more than a billion US dollars. One of the highlights of this year’s NOAH is Stripe. Set up by Irish brothers Patrick and John Collison, the start-up offers payment solutions for Internet companies. Stripe has advanced to become one of the most relevant pay method providers with an estimated value of almost ten billion US dollars. Another Fortune Unicorn List company, Cloudflare, will also be taking to the NOAH stage. The hosting provider offers protection from website downtimes caused by excessive data volumes. Cloudfare’s corporate value is estimated to be 3.2 billion US dollars. Launched in 2009, the NOAH Conference has developed to become Europe’s leading event of the digital scene. More than 7,000 Internet CEOs, decision-makers and investors come to Berlin. S E G A M I - G K A / L O P M A H C E V R E H / A P CONTENTS What Martin Schulz, SPD candidate for Chancellor, thinks about start-ups page 4 No progress in the research world without artificial intelligence page 6 What is Blockchain? Why it’s more than just page 8 a cryptocurrency An encounter with the future – what automated driving feels like pages 10/11 IT security remains a foolishly underestimated problem page 12 About the ups and downs in the start-up scene in Germany and Berlin pages 14/15 Silicon Germany – why it still isn't too late for digital transformation page 16 Winners only? What digitization means for page 18 the working world The start-up Beyond Meat is planning a culinary revolution page 19 Kitchen Stories – two business founders tell pages 20/21 their story Disruption – what the digital revolution is doing to us humans pages 22-24 Why porn producers have been pioneers of the digital business model page 26 Young, male, prepared to take risks. Why start-up founders are so similar page 28 Pitchspeak – how young companies aim to win over investors page 29 store. But the implications of these simple ideas are complex and something we no longer have a clear overview of. Facebook is preparing to turn the entire world into a network. From the third quarter of 2015 to the third quarter of 2016, the US advertising market grew by 2.9 billion dollars. 99 per cent of this growth went to Google and Facebook. All over the world, pub- lishers that have been brought to their knees by Face- book are fighting for the chance to continue working in journalism as a viable business. But the problem is far bigger than the problems facing one sector. With- out journalism, without a pluralistic and critical pu- blic, there can be no democracy. Facebook the product has crerated the biggest public the world has ever seen. Its ethical responsibility is therefore enormous. But thousands of posts disappear from Facebook every day without apparent reason. At the same time, users face a flood of hatred and derogative posts without the billionaire corporation taking command of the situati- on. How great the influence on the election of the US President was remains in dispute. But the fact that there was some degree of influence is certain. And to take another example: With Maps, Google created the logical follow-up, the printed map – a thing that seems totally impractical to us today. This rather simple program is a good example of the continuously available better options that digitization has given us humans. Google Maps always calculates the best route from A to B, as long as it knows the destination and location of the user. But the creation of this digital al- ternative poses fundamental questions, because it is also used in less known, but more powerful systems. What happens in a society when the members of it are always being offered a better option than the one they would intuitively choose? When the result is only the shorter path – that’s a proposal we can live with. But other pathways have long since been appearing. This person would be a better partner for you. This person is sick, and this is the right treatment for him. This person is a terrorist. If this person was dead, the world would be a safer place. And so on. Computers know everything and they know every- thing better. It is a fact that the decisions made today concerning security and military campaigns all around the world are based on estimates calculated by compu- ters. Experience gained in stock exchanges where si- milar systems are implemented has shown that hu- mans rarely go against recommendations made by a computer. If someone takes their decisions based on data, they can justify failure by saying that the compu- ter decided. However, failure is rare, as the estimates made by such systems are becoming better all the time. Artificial intelligence helps us detect illnesses at an earlier stage, to identify terrorists, and to prevent break-ins before they happen. It is also artificial intelligence that helps Amazon supply its customers with products that they never or- dered. Tests show that the costs of potential return shipping is lower than the profit gained by such practi- ces. The decisive factor here is that the computer can calculate precisely who might be interested in having such a product. But how is the capitalist process to work when machines predict people's needs using cal- culations? Will supply and demand still determine pri- ces in a world like this? And what will happen to free will in the world of better options? What about self-responsibility? And where do we draw the fine line between a welcome addition like the shorter path and the gradual elimination of autono- mous decisions? If the world now becomes increasing- ly efficient and computers assume many of the tasks done until now by humans, do we not need a com- pletely new system for paying citizens? Most of the ideas that are changing the world today were developed as economic solutions. It is only now that we slowly begin to realize how they have seeped into politics, society and the media. And digitization, more than anything, is influenced by effects that can- not be calculated. If, for example, a functioning quan- tum computer will be developed – as many researchers have prophesied – then this would massively increase the pace of digitization. And if, one day, self-learning artificial intelligence really will command and take over human intelligence, then what we will experience is the “unfriendly takeover” of our civilization. That's why it is so important that we begin to be more bold in how we shape the process of digitization. It is not something that is happening to us like a reli- gious miracle, descending on a humankind petrified and in awe. We must grasp this process as a positive opportunity and shape the way it develops in the inte- rest of the values we hold, and establish it in such a way that the right ideas have success. We must make sure that new laws empower those businesses that se- cure our democracy. But, more than anything, we must make sure that we can preserve our freedom wit- hout robbing ourselves of the chances presented by this new world. Optimism, openness and the uncondi- tional desire to defend the free world will help us here. Mathias Döpfner is CEO of Axel Springer SE CREDITS A product of the supplement unit for DIE WELT Managing Editor: Astrid Gmeinski-Walter (responsible according to press law) Editorial team: Matthias Billand, Stefan Seewald Translation: Lindsay-Jane Munro Layout: Bettina Jülch; Graphic Design: Walter Lendl Title: Shutterstock.com Sales Director: Silvana Kara National Marketing: Alexander Kühl firstname.lastname@example.org Publishing Company: WeltN24 GmbH Printing: Axel Springer SE, Berlin Editorial deadline: June 19, 2017 Date of publication: June 21, 2017
4 NOAH BERLIN 2017 DIE WELT | JUNE 2017 “Let’s get going” NOAH conference speaker Martin Schulz sees great opportunities in digitization. In order to create the right framework conditions for digitization, innovation is vital, as is supporting people engaged in innovation 1 6 D N E T S E W / 1 6 D N E T S E W / S E G A M I Y T T E G In Martin Schulz’s opinion, Germany must find and promote all of the talents out there. That means teaching young people how to understand and use algorithms and programming languages both economically and culturally. This is true in the media sector and it is true in the platform economy. Creating the right framework condi- tions also means, above all, promoting innovation and promoting those who are engaged in innovation. This is about education, investment and Europe: Ger- many needs no less than an educational offensive in order to be true to its repu- tation as a nation of poets, thinkers and engineers. To this end, we must build on our strengths and invest heavily: in educa- tional infrastructure, in modern learn- ing materials, in better training and continued education for teachers. We want to promote talent, kindle inventi- ve and entrepreneurial spirits. To this end, we must update our curricula and provide young people with the skills they need to understand and apply algo- rithms and programming languages. The social aspect of digitization should be part of modern education. In additi- on to Goethe, shouldn’t every school- child have heard of Evgeny Morozov, Frank Schirrmacher and Eric Schmidt? In order to keep clever people in our country – and also attract talent from other countries – we need investment. Curious, innovative and creative people go where they find exciting and stimula- ting environments. They go where they are received with open arms. Where the best conditions exist for their ideas, creativity and business sense. They go where culture lives, where there is street art, theater, concerts and cinema. This place should be Germany! We need to make more venture capi- tal available to founders, especially in the growth phase. We must also ques- tion whether our tax system currently offers young entrepreneurs the right in- centives. We should not accept the fact that a rich country like Germany is lag- ging behind other European countries in its expansion of the glass fiber net- work. That is why we will invest in high- performance gigabit networks, especial- ly in rural areas. We will promote re- search so that the next Internet giants and market leaders come from Europe and so that we do not have to look with envy at Silicon Valley. The prerequisite for this is nothing less than a change in culture. Let's create a culture of second Speech by Martin Schulz Chairman of the SPD Born in 1955 and a bookseller bu training, Martin Schulz was Pre- sident of the European Parlia- ment from 2012 to 2017. In March he was elected the SPD’s chair- man and candidate for Chan- cellor in the upcoming elections. chances! The key to our success lies in a strong Europe. As a former president of the European Parliament, I know the potential of Europe, and I want to final- ly unleash it. It is precisely at the pre- sent time, when Trump, Putin and Er- dogan are challenging the values of free- dom, tolerance, diversity and also inter- national security, that Europe is a shi- ning counter model. Now it is necessary to advance this Europe: with a massive investment program, a reduction of un- necessary and restrictive bureaucracy and the promotion of innovation and research. The digital transformation is one of the great challenges of our age. Naviga- ting and shaping the digital transforma- tion must be a top priority for Germany, because a change that is so profound must be coordinated, accompanied and advanced in a determined fashion. In order to attain these goals – as in many companies that are faced with the same task today – courageous leadership is required that takes on responsibility for this development. Telecom CEO Timo- theus Höttges once said: “In the digiti- zation game, we lost the first half in Eu- rope.” If you’re behind you must catch up. This can’t be done with tentative steps; we must advance boldly. I want a sentence from Goethe to ser- ve as our leitmotiv: “It is not enough to have knowledge, one must also apply it. It is not enough to want, one must also act.” R ecently, two years ago, as more and more smart- phones began popping up around me, I was still using a cell phone without any apps, Internet, or a color display. This also had some advantages: the battery BY MARTIN SCHULZ lasted several days, even with intensive use. My system seemed very resistant to hacking. Although I was hesitant to make the change to a smartphone, I actually began thinking quite early on about the question of digitization, its opportunities and risks for our society. After all, this development has broader implications than just new cell phone models: it is profoundly changing our society and our economy. To ignore this revolution would be akin to closing your eyes and hoping that you are invisible to others. But I do not want to close my eyes, I want to understand digitization as an opportunity and make it a success for our whole country. In order to achieve our goals, we have to start creating the right framework conditions right now: It is important to me that there is legal certainty and that basic principles are enforced for every- one in the digital European economy. Digitization must not mean that the winner all. The basic prerequisite for a well-functioning so- ciety is the preservation of plurality, takes it
6 NOAH BERLIN 2017 DIE WELT | JUNE 2017 N E S U K A R Y T N O M / A R U T L U C / S E G A M I Y T T E G Available technologies are advanced enough to have a great deal of the work now done by humans carried out by machines D igitization is on everyone’s lips. In most cases, the word is used to set off on a ti- rade about how much the Germans and Europeans are lagging behind when it comes to new technologies, or how much our economies need to catch up. And yet Europe in particular has everything it needs to overcome the so- cial and economic challenges facing it with the help of new technologies. The key technology for this is artifi- cial intelligence. stead of concentrating on eternal yesterdays or far- away tomorrows? If we did, we would maintain our economic situation and still have more paid time to deal with the big, important issues facing us. And we would also be promoting creative talents and those who dedicate their time to helping others. That is why artificial intelligence, which would make all this pos- sible, is a key technology. It is the only chance we’ve ever had to solve our many backlogged problems with- out this causing a serious rift in society and the econo- An unbelievable piece of historical good for- tune led two situations to coincide, thus provi- ding us with a unique opportunity. On the one hand, our economy and society are under siege. BY CHRIS BOOS That is evident economically in the digital dominance of non-European companies, which attack one company after another. Socially and politically, we can see it through the increasing willingness of people to act in an extreme man- ner – whether in the form of terrorism, extre- me right-wing activities, or in massive state surveillance. On the other hand, the technolo- gical state of the art is so advanced that we would be able to have 80 per cent of the work currently done by humans done by machines. Both of these scenarios are in themselves un- pleasant. And now they have come together, bringing with them the risk that the entire eco- nomy could be replaced by better models, but also the chance to increase efficiency. This means that, firstly, we need time and money to restructure our business models, or to be precise, our entire economy. And secondly, we could manage nearly everything that we do already but expend a lot less time and money to achieve the same outcome. Time is our most valuable commodity. And artificial intelligence could give us back the time we spend on predefined and repetitive tasks, so that we could use it in areas to which machines still have little access. What is more, these are precisely those areas that make people happy and allow them to grow, namely, being creative and serving others. So, what are we waiting for? Why don’t we just let machines do many of the activities we still do at the moment? Why don’t we grab the bull by the horns in- Time to dream Artificial intelligence can give us a solution for many problems – if we are willing to change my. No rift, because we don’t have to first of all bring about the efficiency and then trust that new jobs will come along at some time, but be forced while these changes take place to create these new jobs. It will me- an change for every single one of us – but not the gra- dual change towards a situation where people work in- creasingly like a machine, which we have been expe- riencing up to now. Rather, we will see a change to- wards more humanity and fulfilment. We have the ri- chest treasure trove of knowledge, experience and va- lues in the world. We must bring these to bear in order to compete with those who challenge us socially and economically. When you work with artificial intelligence, you are often forced to take a look at topics that will perhaps become relevant in 20 or 50 years. And yet this enthu- siastic discussion about the faraway future always rests on the assumption that we will manage to create a ma- chine with consciousness. This is necessary, but not crucial. Similarly, it doesn’t help us much when we as- cribe the unwanted consequences of our own human acts abstractly to some algorithms or supposedly evil corporations. What we have to examine more closely is what will happen technically in the coming three to five years. In this short period of time, we could see some of the biggest challenges facing society actively solved. If we ignore this chance, or procrastina- te, we run a considerable risk of permanently losing our rank as one of the world’s richest so- cieties with one of the highest standards of li- ving. What is it we have to examine more close- ly? The technologies available today are develo- ped enough to allow the majority of work that is now done by humans to be done autonomously by machines. The remarkable thing about this fact is that machines are not only able to do the “simple” jobs, but also the work that requires a high degree of specialization and a high degree of analytical and abstract thought. What would happen if we could invest 80 per cent of our energy in solving the big issues that deserve our attention? That is not merely a pleasant dream inspired by John Lennon. It is what artificial intelligence can give us if it is coupled with the rich values of our diversified society, with the wealth of experience of the world’s leading companies, large and small, and with good infrastructure. In Europe, and in Germany in particular, we have both prerequisites in place – a society that has the courage and the discipline to stand up for its values, and an economy that brings forth the best products and services in the world. Arti- ficial intelligence is being developed in Europe by re- nowned companies, well-known research institutes and in a strongly growing start-up scene. One question remains: Are we willing to make the necessary changes to our society and to industry, or is it easier to just complain and leave solving the problems to the next generation? One thing is certain, artificial intelligence offers us a path towards solutions. But it is a path we will have to tread ourselves. Company founder Chris Boos is considered to be a pioneer of artificial intelligence
ANZEIGE Aktiv in Berlin, München, Wien, Zürich usw. Was ist eigentlich Uber? Uber ist eine Vermittlungs-App, die ihre internationale Nutzer-Community weltweit mit lokalen Chauff euren verbindet. In Deutschland gibt es Uber in Berlin und München. In beiden Städten vermittelt Uber Fahrten ausschließlich an professionelle Beförderungsunternehmen, also an Chauff eure mit Personenbe- förderungsschein, die bei einem sogenannten Mietwagenunternehmen angestellt sind, sowie in Berlin auch an klassische Taxis. Ja, tatsächlich auch an Taxifahrer. In der Hauptstadt nutzen mehr als 1000 Taxis Uber, um sich Fahrten von der internationalen Nutzer-Community der App vermitteln zu lassen. Blick in die Zukunft Wie die Mobilität von morgen aussehen könnte Die Experten sind sich einig: Spätestens mit dem selbstfahrenden Auto werden die meisten Menschen in Großstädten nur noch in Ausnahmefällen ein eigenes Auto besitzen. Denn warum sollte man das Auto acht oder neun Stunden in der Tiefgarage auf einen warten lassen, wenn es in der Zwischenzeit Familie, Freunde oder auch Fremde transportieren könnte. Der Sprung zum vollständig geteilten Auto ist dann nur noch ein kleiner. Das Mobilitätsverhalten wird sich also in den kommenden Jahren grundlegend ändern. Wenn jemand ein Fahrzeug braucht, wird er künftig einfach das Smartphone zücken und einen Knopf drücken. Das autonome Gefährt setzt sich dann von allein in Bewegung und ist in wenigen Minuten da. Gut möglich, dass ein anderer Fahrgast, der in die gleiche Richtung möchte, bereits im Auto sitzt. Was futuristisch anmutet, ist auch ohne selbstfah- rende Technologie bereits in vielen Uber-Städten Realität. Schon heute drücken Menschen einen Knopf, ein Fahrzeug kommt in wenigen Minuten vorgefahren, und in einigen Ländern sitzen bereits ein oder zwei andere Fahrgäste auf der Rückbank, das nennt sich dann uberPOOL. Eine Reise nach Paris oder London reicht also aus, um die Zukunft der Mobilität bereits heute zu erleben. Uber in Zahlen 450 STÄDTE, 76 LÄNDER, 5 MIO. FAHRTEN AM TAG. Quelle: Uber Die innerstädtische Echtzeit-Mitfahrzentrale Wie Uber mehr Menschen in weniger Fahrzeugen bewegt Das Modell uberPOOL revolutioniert bereits in mehr als 30 Städten weltweit, darunter Metropolen wie New York, London oder Paris, die Art und Weise, wie Menschen sich fortbewegen. Dabei nimmt ein Fahrzeug mehrere einander un- bekannte Mitfahrer an verschiedenen Orten auf und bringt sie mit minimalen Umwegen an ihre Ziele. So werden aus drei Fahrten eine. Das Ergebnis: weniger Fahrzeuge auf den Straßen, weniger Emissionen und günstigere Preise für den Verbraucher, die sich nicht nur die Fahrt, sondern auch den Fahrpreis teilen. In San Francisco macht uberPOOL bereits die Hälfte aller Fahrten aus, die über die Uber-App bestellt werden. Mit uberPOOL werden Autos zu Effi zienzmaschinen, denn sie machen nicht nur mehr Fahrten pro Zeiteinheit, sondern trans- portieren auch mehr Menschen pro Fahrt. In Städten mit gut ausgebautem Bahnnetz wie zum Beispiel London zeigt sich, wie Menschen Uber vor allem auch nachts als Ergänzung zum ÖPNV einsetzen, um sicher die letzte Meile von der U-Bahn-Station zu ihrer Haustür zu überbrücken. Uber vergrößert aber auch die allgemeine Sicherheit im Straßenverkehr. In New York beispielsweise sanken mit der Einführung von Uber & Co die Unfälle, die durch Fahren unter Alkoholeinfl uss verursacht wurden, um mehr als 25 %. Teilen statt besitzen WIE WIR AUTOS KÜNFTIG EFFIZIENTER NUTZEN KÖNNEN Unsere modernen Städte sind geprägt von Staus und Park- platzwüsten. Denn die 44 Millionen Autos in unserem Land bleiben zu 95 Prozent der Zeit ungenutzt. Und wenn die Autos einmal bewegt werden, dann transportieren sie meist nur eine einzige Person, und das führt zu Staus: In München standen die Pendler 2016 im Durchschnitt 49 Stunden im Stau. Damit ist die bayerische Hauptstadt deutschlandweit Spitzenreiter, was den Stillstand auf den Straßen angeht. Auch insgesamt liegt Deutschland im europäischen Vergleich mit durchschnitt- lich 38 Stunden Stauzeit weit vorn auf Platz 3. Flexibilität statt Stau – dank geteilter Mobilität Der Anteil der Autobesitzer unter den 18- bis 25-Jährigen ist zwischen 2011 und 2016 von 56 Prozent auf 40 Prozent zurückgegangen. Das liegt unter anderem daran, dass viele junge Menschen lieber multimodal unterwegs sind. Das heißt, sie wechselt gern fl exibel zwischen den Verkehrs- mitteln hin und her, anstatt sich nur auf eines zu verlassen. Organisiert wird das Ganze über das Handy, das alle wichtigen Fragen beantwortet: Wo fi nde ich … und wann fährt die Bahn, wo steht das nächste Car- oder Bikesharing, wie lange dauert die Abholung per Uber? Je dichter und vor allem auch bezahlbarer dieses Netz an Alternativen ist, desto leichter fällt es den Menschen, das eigene Auto stehen zu lassen und so die Verkehrs- und Parkplatzsituation in unseren Städten zu entlasten. Mit verlässlichen und be- zahlbaren Fahrten auf Knopfdruck trägt Uber dazu bei, den modernen Mobilitätsmix attraktiver zu gestalten. Mit Uber einfach und sicher ans Ziel Die App-Technologie von Uber ermöglicht es, Fahrer und Fahr- gast möglichst eﬃ zient und ohne Zeitverlust zusammenzubringen. Die Fahrer haben dadurch mehr Aufträge pro Stunde, was sie wiederum in die Lage versetzt, die Fahrten zu einem günstigeren Preis anzubieten. Aus Nutzersicht ist der Preis jedoch nicht der einzige Vorteil, es geht ihm auch um die Einfachheit und Transparenz von Uber: Nutzer drücken einen Knopf in der App, und in wenigen Minuten kommt ein professioneller Chauﬀ eur vor- gefahren. Der Standort wird dabei automatisch ermittelt, der Nutzer muss also nicht einmal wissen, wie seine Straße heißt. Außerdem zeigt die App sowohl das Bild und den Namen des Fah- rers an als auch das Kennzeichen des Fahrzeugs. Das schaﬀ t Trans- parenz und Sicherheit. Während der Fahrt zeigt die Uber-App dem Fahrer immer die optimale Strecke an. Die gewählte Route ist für den Fahrgast auch nach Beendigung der Fahrt in der App nachvollziehbar. Umwege gehö- ren damit der Vergangenheit an. Schließlich bewerten sich Fahrer und Fahrgast noch gegenseitig. Und sollte mal etwas im Fahrzeug vergessen worden sein, kann der Nutzer auch im Nachhinein per App Kontakt mit dem Fahrer aufnehmen. VERFÜGBAR IN BERLIN UND MÜNCHEN SOWIE IN REISEZIELEN WIE KAPSTADT, LISSABON, PRAG ETC. MEHR INFORMATIONEN UNTER WWW.WELT.DE�WELT�ERKLAERT
8 NOAH BERLIN 2017 DIE WELT | JUNE 2017 Blockchain is the new Web Experts are saying that technology will not merely change the Internet – it will be the Web if the future itself B lockchain is one everyone’s lips, but what is it? Some people think it’s nothing but a fashionable buzzword that will be soon forgotten. Others are of the opinion that Block- chain is not only a technology, but even the Internet of the future. If you believe what those from the Block- chain lobby and a number of experts have to say, then we find ourselves be- fore a dramatic change. Up to now, the Internet has been great for people who want to communicate or look some- thing up, “but the serious stuff is only just getting underway”, says Periane Boring, founder of the Chamber of Di- gital Commerce, and a representative of the Blockchain industry. BY FRANK SCHMIECHEN But what does she mean by “seri- ous”? Blockchain technology will en- sure that, in future, we will be able to do everything on the Net that we now do offline or on paper. For example, we’ll be able to conclude legally bin- ding contracts without a notary and thus transfer objects of value, sell hou- ses, do financial transactions and the like. There should be no more need to resort to the services of a bank. Copy- rights will also be far easier to protect. All processes will be saved on every computer involved in a network, and this decentralization is to guarantee absolute security. Vitalik Buterin, developer of Ethereum platform, wants to make cryptocurrencies fit for everyday use I I S P L L H P N H O J / Y T T E G rency is first of all exchanged for Bit- coins and the sum is then transferred onto the respective bank account in the target currency. The aim is to also make it possible to pay bills via the platform using Bitcoins. Monax runs the platform eris, which aims to help developers set up Block- chain technologies for companies. The site also sells software development kits. These consist of readymade tools and applications that can be imported onto the new application. Coyno develops software solutions for interaction with Blockchain. Its aim is to provide companies in particular with easier access to and handling of the technology. IPDB or Interplanetary Database is a database that aims to protect creative content. It will make sure that docu- ments cannot just be copied and distri- buted, and that the rights remain with the author/creator. But it’s not only small start-ups that are thinking about the possible future uses of Blockchain. The technology could be used in any industry. For example, energy supply. Tobias Federi- co from Energy Brainpool nailed the situation on the head at a conference when he said, “We have a solution. Blockchain. But we now have to look and find out where the problem for it is.” The energy supply of the future will definitely be more fragmented. Kirsten Hasberg from BlockchainHub Berlin explained it like this: “The cus- tomers will have a say. They will be ab- le to buy shares in the production, for example, and set them off against their consumption. The market will be far more decentralized.” Blockchain tech- nology is seen as the ultimate tool for organizing and authorizing applica- tions automatically, and for main- taining them. I I I I S N O S V K C B B A H R O T C V / F R Y R A R B L O T O H P E C N E C S / S E G A M I I I Y T T E G Stromdao.de already offers an “electricity price in Blockchain”. All transactions done by the customer are written directly into the Blockchain. The company is now looking for elec- tricity customers who are interested in working on the marketing and product design. Using voting rights, people will decide together whether any of the ideas should become reality. Digitization, now in the form of Blockchain and Ethereum as well, is becoming ever faster in making sure that technology takes power and control out of the hands of central authorities and hands it over to users and networks. Companies, at the present time like spi- ders sitting in their webs, are naturally worried about this development. That is perhaps why Google evangelist and inventor of the TCPIP Internet protocol, Vint Cerf, is critical of the Blockchain technology. In an interview he pointed out its many technical problems, saying: “I would cer- tainly not invest in Blockchain.” Buterin, by compari- son, is very much in favor of this march towards free- dom when it comes to the Internet. He and his organi- zation “Ethereum” are working on a highly disruptive approach that might have effects, the significance of which we cannot yet imagine. Unless Blockchain really is nothing more than another fashionable buzzword soon to fall into obscurity, of course. Double B. Blockchain and the digital currency Bitcoin are the first of their kind Ethereum is currently establishing itself on the foundations of the Block- chain technology at a rapid pace. It is a platform on which you will soon be ab- le to conclude contracts and transfer property. You can already invest in start-ups, for exam- ple, via Ethereum. It uses the cryptocurrency Ether as a means of payment that is accessible to those taking part. The exchange rate for this currency has practically exploded in the past weeks. Ethereum was developed by a young man from Rus- sia. His aim was to iron out the weaknesses in Block- chain and build a product with his team that is practical to use. The Ethereum platform should also be much faster than previous Blockchain applications. Developer Vitalik Buterin is just 23 years old, and yet his techno- logy is already shaking up the finance system. The main idea of a Blockchain is to make a worldwide exchange of assets possible – without the need of an overseer, complicated verification procedures or fees. These are precisely the processes that banks live from. In a report in Capital magazine, Buterin said the follo- wing: “The day I took a closer look at Bitcoin made me understand that making payments without the middle- men is possible”. To the banks’ ears, these words sound like the death knell for their business. This insight from the young man, who is developing his idea in Switzer- land, made financial institutions pretty nervous. In the meantime, the Deutsch Bank, for example, has been ta- king a very close look at the issue, fully aware of how dramatic the situation is. Managing Director Patrick Pohl commented, “If we don’t react and get to grips with this, it could be very dangerous for our business.” There are already a surprising number of start-ups try- ing to profit from the technology of the future: Satoshipay has developed a plugin for nano-transactions for media contents. These will enable the customer to monetize articles, photos or songs in a simply manner and offer them for low amounts in the cent range. Vaultoro is an exchange platform for gold and Bitcoins. The gold is stored in Switzerland and will be deliverable at all times. The transactions can be seen publicly via Blockchain. Bitwala offers money transactions via Blockchain. It will give customers the chance to transfer money to other countries within hours. To do so, the original cur-
10 NOAH BERLIN 2017 DIE WELT | JUNE 2017 Cars that drive themselves Higmly automated driving is to become part of everyday life. However, tmis will still take some time to mappen. And tmen tmere’s tme question of acceptance. Are car drivers prepared to let software take tme wmeel? A self-experiment T The car is zipping down the Autobahn at 130 km/h. There’s a bit of music on the radio as I sit relaxedly in the driver’s seat. The only difference to my usual drives: I’m neither holding the steering wheel nor touching the pedals with my feet – and I’m having a lively conversation with my passenger. I’m sitting in a prototype of the Audi A7 that can drive completely autonomously on the Autobahn. At the same time, I’m trying to disguise the fact that I find the situation somewhat unsettling. BY DON DAHLMANN Humans, after all, are creatures of habit. When we get onto an airplane, we know that the pilot will be doing precious little for most of the flight. The auto- pilot is in control except during the start and landing. And we can live with that, partly because we’ve be- come accustomed to the idea that an autopilot can safely deliver us to our destination, but also because we know that most accidents are due to human error. 80 percent of all airplane crashes occur during the start and landing, i.e. precisely when a human is at the controls. And the situation is no different in road traffic. If we could eliminate the human error source behind the wheel, it would be possible to prevent 90 percent of all fatal accidents, says a McKinsey study. In other words: experts hope to be able to reduce the nearly 4,000 fatal accidents on German roads annually to a few hundred with autonomous cars. That’s all very logical as I ponder it rolling down the A9 Autobahn in the A7. At no point does the car provide any grounds to doubt its capabilities. It drives very carefully – al- most too carefully. If another traffic participant sli- des into my lane and gets too close, the car gently brakes. I initiate a lane change by briefly tapping the blinker; the Audi takes care of the rest. Monitoring rear traffic, merging, accelerating, braking – it all works smoothly and flawlessly. And nothing of the technology is visible in the car. In autonomous driving, there are five different le- vels. In level 1, the driver is still required to do every- thing, and in 5 there is no longer even a steering wheel or brake for a driver. The car finds its way on its own. The best vehicles available today can manage level 2 at the most. In certain situations, such as on the Autobahn, the car can drive straight ahead, main- tain its lane, control the distance to the car ahead and so on. In traffic jams, the car takes over entirely. With the new Audi A8, the Mercedes S Class and the new autopilot from Tesla, this year will see the emergence of three cars that master level 3. Here the systems almost entirely take over the driving task. On highways in particular the car can assume com- plete control, including overtaking and evasive ma- ,, We sense what other traffic participants intend to do and our behaviour effortlessly adapts to it. The result is that we avoid accidents and keep traffic moving smoothly ALEXANDER MANKOWSKY, Daimler research neuvers. The driver is only called upon to take con- trol again after a warning time of several seconds. The prototype from Audi in which I am cruising down the Autobahn has already reached level 4. The car drives without human intervention for the most part. It parks itself, and can drive on its own on rural roads and in the city. The driver can turn her at- tention to other things and needn’t keep an eye on traffic all the time. But I have a sense of unease in the Audi nonethe- less. Perhaps it makes me somewhat nervous that sit- ting next to me is an engineer from Audi and in the center console there’s a large red button with which one can deactivate the autopilot. Audi naturally doesn’t want to leave anything to chance – or a mis- placed line of code in the software that controls the car. In an emergency, then, the friendly man next to me could intervene. And I’m here too, of course. All the same, I quickly notice that my attention is flagging. I don’t have anything to do, after all. After a half-hour, I’ve grown used to it and trust the car. It purrs down the center lane, overtaking slower trucks when I merely tap the blinker. The cameras and soft- ware reliably take note of speed limits. As the driver, I’m all but unemployed and simply staring straight ahead is rather boring. So I take a few pictures with my cell phone and answer a WhatsApp message. One part of my disquiet in the car is due quite sim- ply to not having anything to do. I may be sitting in front of the steering wheel and the pedals like always, but those control elements are operated by the com- puter. You feel a bit useless, not having the usual free- dom of movement between the dashboard and seat. That’s still a problem, most engineers will concede. In the future, the interior of a vehicle will have to be
DIE WELT | JUNE 2017 NOAH BERLIN 2017 11 An increasing number of people can actually imagine having themselves driven around by a self-driving car. Most people would prefer to use the extra time they gain by doing so in an unproductive manner, for example, looking at the landscape pass by, daydreaming, having a nap, or chatting with other passengers From autopilots to driving assistance systems The fight for technological dominance in the area of autonomous driving is in full swing. But only Tesla has been confident enough to date to call its system “Autopilot”. German manu- facturers are more reserved and prefer to speak of “driving assistance systems”. And there are in reality differences between the manufacturers, already starting with the sen- sors installed. While German manufacturers place their trust in the expensive, but very pre- cise laser scanners, Tesla does without these, getting by with a combination of simple came- ras and radar. Irresponsible, German manu- facturers say, pointing towards accidents Tesla has had during autonomous drives. Elon Musk’s response is that autonomous driving is a software thing. And while German manu- facturers are still tinkering about on their sys- tems, Tesla already wants to launch the ne- west software level this year. ‘Autopilot 2’ is based on a self-learning system of artificial intelligence. German manufacturers still don’t have anything of their own as a comeback. ard in the first place. But if you tell them after a year that 90 percent of all landings were done by autopi- lot, they respond with a shrug. You have to learn a completely new form of empa- thy, says Mankowsky. “We sense what other traffic participants intend to do and our behaviour effort- lessly adapts to it. The result is that we avoid acci- dents and keep traffic moving smoothly.” And that is exactly what we don’t trust a computer to do. The in- tuition that drivers develop with practice is unique. A computer may be able to tell when a car is moving, but intuition can sometimes be quicker than any computer. On the other hand, humans are simply over- whelmed in many situations. Interestingly, before an accident in the city most people reach for the horn first and only then apply the brakes. As if one could eliminate the obstacle by sound. Before the safety belt was introduced into cars, one could at best hold onto something, or one’s faith in higher powers. The grab handles on the doors and – in the olden days – on dashboards were the last help for generations of passengers. When the seatbelt re- quirement was brought in 41 years ago, many drivers resisted. One would be unable to extricate oneself in case of a fire was one often-heard argument in those days. But generations of drivers since have grown ac- customed to it. By now I find driving with the Audi to be calming. Now and again a car flies by at what seems to be 200 km/h, but I’m in no hurry. I can calmly carry on a chat with my colleague in the back, check the messages on my smartphone or simply enjoy the scenery. It is in- deed a very relaxing thing to travel in a self-driving car. But only if you really trust the computer. I I V E H C L M L E N A D / S E G A M I Y T T E G adapted to the respective driving situation. So is this the future of driving? Sitting jobless and absent-min- ded behind the wheel just waiting for the car’s com- puter to make a mistake? Friends and acquaintances generally respond to the question of whether they would buy an autonomous vehicle with a categorical “never!” One has things under control, even at high speeds, goes the thinking. What’s more, no one’s in- terested in a crashed computer as the car speeds along at 200 km/h. Alexander Mankowsky, future researcher with Daimler, finds such dismissive notions completely normal. People need time to get used to new techno- logies, he notes. If you told airline passengers before entering the plane that the plane would be landing autonomously, most of them would probably not bo- Piloted driving concept Front camera Top-view cameras Front laser scanner Ultrasonic sensors Rear laser scanner Rear radar sensors Ultrasonic sensors Rapid prototype control unit Front radar sensors Corner radar sensors
12 NOAH BERLIN 2017 DIE WELT | JUNE 2017 Perpetrators rely on employees being careless. Carelessness or thoughtlessness also play a central role in the second real danger from the Internet – Trojans, viruses or ransomware theu networkedu economy.u Theu project saysu thatu althoughu 8,600u companies haveu completedu au securityu checku since then,u expertsu stillu cannotu seeu anyu real progress. Whileuituisutrueuthatutheusecurityuawa- renessu ofu companiesu hasu beenu increa- singu continuouslyu overu theu years,u the practicalu benefitsu remainu tou beu seenu in realuterms.uThereuisuauprevalenceuofuindi- vidualu measures,u andu mostu SMBsu seem touthinkuthatuaucomprehensiveuanducoor- dinatedu securityu conceptu isn’tu necessa- ry.u Theu greatestu gapsu canu beu foundu in emailusecurityuanduinuemployeeutraining. Theu exampleu ofu Leoniu AGu showsu that theseu weaknessesu areu notu onlyu au prob- lemu inu medium-sizedu companies.u The Nurembergu company,u withu around 75,000uemployeesuanduauturnoveruofu4.4 billionueuros,ucanuhardlyubeudescribeduas medium-sized. Theuvulnerabilityuofucompaniesuinuthe increasinglyu networkedu economyu will increaseu dramatically.u Anu everu tighter informationu networku alongu theu pro- ductionuchainuisuultimatelyutheukeyucha- racteristicuofutheu4.0udigitizedueconomy. However,u thisu couldu putu anu endu tou the carelessu cultureu ofu securityu inu many companies.u Theu closeru theu exchangeu of dataubetweenusuppliersuandutheirucusto- mers,utheustrongerutheuintegrationuinto theiru productionu schedulesu becomes, andu theu higheru theu expectationsu ofu IT securityuwillubeufromutheuoutside.u Addedutouthisuareutheurecentulegalure- gulations.u Itu isu trueu that,u strictlyu spea- king,u theseu onlyu applyu foru companies thatu provideu so-calledu criticalu infra- structureu –u transport,u telecommunica- tionsu oru energyu supplyu companies,u for example.u However,u ITu expertsu advise companiesu tou orientu themselvesu to- wardsu theu measuresu establishedu there andudevelopedubyutheuFederaluOfficeufor InformationuSecurity. E R O O M A R A T / S E G A M I Y T T E G A nuunbelieveablyusimple,ubut obviouslyu well-prepared psychologicalutrickucostucar supplieruLeoniuauthirduofuits annualu profitu (beforeu tax) inuAugustu2016.uTheumethoduuseduisure- ferredutouasu‘CEOufraud’uanduisubasically theuage-olduconuofupretendingutoubeuaure- lative,u butu adaptedu inu a corporateu situation.u Oneu Nuremberg cableu manufactureru isu loathu tou reveal tooumanyudetails,ubutuinuAugustuanuem- ployeeu wasu obviouslyu promptedu to transferu40umillionueurosuontouauforeign bankuaccount.uTheuorderucameufromuthe topuanduwasuformulateduinusuchuaucom- mandingu wayu thatu theu employeeu in questionucomplieduimmediatelyuwithout askinguanyuquestionsuanduwithoutucarry- inguoutuanyufurtheruchecks. foru useu The human risk factor Companies complain about cyber-attacks on their IT infrastructure. However, often enough, criminals succeed because of in-company carelessness BY HOLGER KROKER Asu Leoniu isu au listedu company,u itu was obligedu tou releaseu informationu about whatu happened,u however,u companies thatu areu notu subjectu tou suchu publicity obligationsu generallyu remainu silent aboutucyber-attacksuofuthisukind. That’su whyu weu can’tu beu sureu howu of- tenu attacksu likeu thisu happen,u butu it wouldu seemu thatu suchu tricksu areu sou wi- despreaduthatutheuGermanuFederaluCri- minalu Policeu oftenu issueu warningu leaf- letsu aboutu suchu practices.u Theu Nurem- bergu companyu hasu comeu tou termsu with theu financialu damageu inu theu meantime andutighteneduupuitsusecurityumeasures, evenu foru ordersu issuedu fromu theu very top.uWhouwasuresponsibleuforutheufraud ofumillionsustilluremainsuunknownu–uthe investigationuisuongoing. Leoniu AGu fellu victimu tou oneu ofu the greatestu risku factorsu inu IT,u namelyu the humanu factor.u Oneu currentu surveyu car- riedu outu byu Priceu Waterhouseu Coopers amongu 500u medium-sizedu German companiesu showedu thatu three-quarters ofuthoseuaskeduseeutheiruownuemployees asutheugreatestusourceuofudanger. Thisuisunotuwithoutureason.uSocialuen- gineeringuattacksulikeutheuoneudescribed aboveuworkuofucourse,ubecauseutheuper- petratorsurelyuonuemployeesubeingucare- less.u Andu carelessnessu oru thoughtless- nessu alsou playu au centralu roleu inu theu se- condu realu dangeru fromu theu Internetu – Trojans,u virusesu oru ransomware.u These electronicu hijackersu areu mostlyu “smug- gled”u inu unwittinglyu byu peopleu who eitheruopenuanuemailufromuanuunknown sourceuoruputuaucontaminateduUSBustick intoutheirucomputer.uWithu“Wannacry”, theumosturecentucaseuofuransomware,uit tooku onlyu oneu carelessu emailu recipient tou endangeru entireu companyu networks. Theu factu thatu theu ransomingu program ultimatelyu causedu onlyu littleu damage wasu downu tou pureu luck.u Anotheru pro- blemuisuthatuevenusmalluGermanucompa- niesuhaveubecomeutheuvictimsuofucyber- attacks.uTheuenormousulevelsuofuecono- micu successu andu highu technicalu compe- tenceuinutheupresentuclimateuinuGermany meanuthatuevenucompaniesuwithufewuem- ployeesu mustu reckonu withu attacksu on theiru ITu infrastructureu andu databases. SurveysubyutheuITuindustryuassociation, Bitkom,u showu thatu theu dangeru facing smallucompaniesuisujustuasugreatuasuthat facedu byu bigu playersu likeu Leoni.u Ofu the companiesu questionedu withu between tenu andu 99u employees,u 70u peru centu re- porteduthatutheyuhadusufferedusomeutype ofucyber-attack,uwithutheufigureuatu77uper centuinutheulargerucompaniesuwithumore thanu500uemployees. Bearinguthisuinumind,uITuexpertsuregu- larlyubreakuoutuinuausweatuwhenutheyuare involvedu inu theu cultureu ofu securityu in Germany’su much-praisedu mid-sized sector.u “Smallu andu medium-sizedu com- paniesu areu stillu lackingu holisticu ap- proachesu foru theiru securityu concepts,” saysutheuGermanuinitiativeuforuInternet security,u“DeutschlandusicheruimuNetz”, inu itsu latestu securityu monitor.u Theu pro- ject,u whichu wasu fundedu byu theu German Ministryu ofu theu Interior,u wasu launched inu2011utoumakeuGermanuSMBsuinuparti- cularumoreuawareuofutheurisksuposeduby
NEW TO THE VODAFONE GIGANET: THE FIRST LTE ON THE MOON The next innovation from the Gigabit Company: Vodafons is ths first tslscommunications company to bring high-spssd Intsrnst to ths moon. Our objsctivs: ths first LTE bass station in spacs. During ths Missinn tn the Mnnn 1018, Vodafonss LTE-V2X tschnology will snabls ths Bsrlin-bassd start-up Part-Tims Scisntists to sfficisntly communicats bstwssn ths rovsr and bass station. This will not only lay ths foundations for Gsrmany’s first moon landing, but also for furthsr missions in spacs. Welcnme tn the Gigabit age with Vndafnne. Find nut mnre at vndafnne.de/giganetz. Vodafone Powsr to you
14 NOAH BERLIN 2017 DIE WELT | JUNE 2017 T Tobias Eichenwald has an ambitious goal with his start-up Senic: he wants to change the way we interact with technology. Senic’s small team, consisting of Ei- chenwald and his co-founders Felix Christmann and Philip Michaelides, has been working together to- wards this goal in their shared flat since 2013. Their first product, Nuimo, is a small puck-shaped device that detects gestures and can wirelessly control the home’s stereo system and lighting. It comes either in a silvery-white or black design. BY ALEX HOFMANN Eichenwald is presenting Senic GmbH’s latest pro- duct at the prestigious Heureka founders’ conference in Berlin: a lamp that reflects almost the entire spec- trum of natural light and that can respond to the spo- ken voice. It serves as a control center for all the smart devices that are likely to populate our homes in com- ing years. The idea is to push the technology itself into the background and bring the usefulness of that tech- nology into the foreground. This is the overriding goal of the Berlin team. Eichenwald, Christmann and Michaelides delibera- tely chose to establish themselves in Germany rather than in the US. They had already sniffed the Silicon Valley air during their time at the seed accelerator YCombinator. Everything is cheaper and more beauti- ful there, laughs Eichenwald. Germany is the right lo- cation for Senic’s products however on account of the patents used by the individual processes that Senic has developed, Eichenwald says. Many of these are owned by German manufacturers. The costs for office space and the average salaries for programmers is, in Ei- chenwald’s view, also an advantage of Germany – and more precisely: of Berlin. Nowhere else in Germany are there so many start- ups per inhabitant as in the German capital. Berlin’s rise to become Germany’s digital hub and one of the most important start-up scenes in Europe began at the turn of the millennium. At that time, the start-up scene was still under the shadow of the burst dotcom bubble of the late 1990s. Many investors were broke and the few technology start-ups that existed at the time were attempting to follow the US model. The German scene’s insistence on sticking to the tried- and-tested garnered it the reputation of only being able to produce ‘copycats’ of already successful business models. Many entrepreneurs saw this as the only way to rai- se capital. There was no money for real innovations, as the venture capitalists had fallen too hard on their no- ses after the first Internet start-up wave. Starting in 2006, however, the German Internet sector began to regain its confidence. Two years earlier, the Samwer brothers Oliver, Marc and Alexander had sold the ring- tone provider Jamba for the then headline-making fig- E D R E E H D V A D I Start-up founder Tobias Eichenwald in his Berlin company Senic GmbH. In front of him a lamp he has developed that will act as a central control unit for all the clever devices and appliances of the future Start-ups love Berlin After years of ups and downs, the start-up scene is stabilizing. 2017 might still be the year of going public
DIE WELT | JUNE 2017 NOAH BERLIN 2017 15 Headquarters of start-ups in federal states and founding regions (2016) in pebcentage Pbevious yeab‘s figubes in bbackets Hamburg Schleswig- Schleswig- Holstein Holstein 1.9 [1.9] ure of 273 million US dollars. Companies such as the T-shirt printing service Spreadshirt and the online so- cial network StudiVZ were growing fast and becoming models for others. Yet despite the positive growth signs, this new wave of digital companies faced their own challenges: the Lehman Brothers bankruptcy in 2008 put a strong damper on the euphoria. But entre- preneurs and investors had tasted blood and weren’t going to be put off easily. What followed was a huge boom, the likes of which had never been seen before. Entrepreneurs from all around the world came to Berlin to start their own businesses on a shoestring. Two Swedes founded the music company SoundCloud. A Dutch entrepreneur founded the travel and tourism marketplace Gidsy. The voucher websites DailyDeal and CityDeal found rapid success and were later sold for hundreds of milli- ons of euros to US companies – the latter to Groupon. Zalando, which was founded in autumn of 2008, has proved to be a major success story and remains to this day a beacon for the German start-up scene – even if the fashion mail-order company now has over ten thousand employees and the founders, who continue at the helm of Zalando, are themselves investing in promising new start ups. Many companies founded in those days no longer exist. It’s part and parcel of business that a lot of young companies quickly disappear from the picture. Starting a business is a risky affair, too much can go wrong. Tobias Eichenwald's Senic has also experi- enced strong ups and downs. “Statistically, every suc- cessful start-up has had two near-death experiences,” says Eichenwald. “We have already had one anyhow.” At the end of 2014, Senic only had enough money to keep it afloat for two more weeks. Their reserves were nearly exhausted. The solution came via the financing platform Indiegogo, which anyone can use to finance start-ups. The plan worked: Nearly 290,000 euros of funding came in. The Senic team was rescued in the last second. Not everyone has got off as lightly as Senic. Many entrepreneurs have been forced to give up. Jonas Piela, for example, is someone who failed. He and his co-founder Oliver Lukesch founded the start- up Avuba in September 2013. The idea was to create the bank of the future. Or at least, a current account that can be administered via an app and that is more oriented to the needs of the customers than what the banks offer – there’s a huge potential market for this, no question. Even after two attempts, Avuba didn’t take off and Piela admits that he made mistakes. The product idea itself was a good one, he insists. As CEO, he should have been able to communicate better with all parties involved, he says self-critically today. He should have communicated what had to be achieved to make the company successful. Or what it really took to achieve the company's goals. Piela drew the lessons from his mistakes too late, he admits. “As a CEO, you have lost when the company’s employees lose their confidence in you” – this has been a painful lesson for Piela. He refuses to let it de- ter him however and he intends to start up another company when the time is ripe. “And avoid my begin- ner's mistakes”, he says. Significantly, almost ninety per cent of all founders here are still satisfied with their current situation, at least according to a survey by the Deutscher Startup Monitor. This level of satisfaction is much higher than one finds among conventional workers, despite the high burden entrepreneurs face in running their own business. One third who took part in the study in 2016 Bbemen 1.7 [0.3] 6.4 [8.3] Hanover/ Oldenburg Loweb Saxony 10.7 [3.3] 6.9 Nobth Rhine-Westphalia 19.1 [15.1] Mecklenbubg- West Pomebania 1.0 [0.6] Berlin 17.0 [31.1] Saxony- Anhalt 1.2 [0.2] Bbandenbubg 1.5 [1.5] Metro - politan Rhine-Ruhr Region 14.1 [10.3] Thubingia 1.2 [1.6] Hesse 5.4 [3.1] Saxony 5.1 [4.5] Rhineland- Palatinate 2.7 [1.6] Saabland 0.5 [0.4] Bavabia 12.1 [16.7] 7.0 [11.5] 8.9 [7.9] Baden- Wübttembebg 12.4 [9.9] Munich SOURCE: GERMAN STARTUP MONITOR 2016; GRAPHICS: W. LENDL / UP-DESIGN.COM German founders use their own savings Favorite sources of financing for German start-ups (2016) 84.1 % Own savings 35.5 % State funding 30.2 % Family and friends 22.6 % Business Angel 19.4 % Internal financing 18.8 % Venture capital 14.6 % Bank loan Based on a survey of 868 founders or managing employees in German start-ups; multiple answers possible. SOURCE: GERMAN STARTUP MONITOR 2016 The European North-South Divide Percentage of employees agreeing with the statement “My country offers good conditions for setting up start-ups”: 69 % 69 % 68 % 62 % 59 % Norway Great Britain Denmark Netherlands Germany Spain 39 % Hungary 29 % Greece 28 % The results shown come from the Randstad work barometer. This online survey is carried out quarterly in 33 countries. In Germany, 400 employees between 18 and 65 years of age from different sectors were questioned. QUELLE: PICTURE ALLIANCE / OTS / RANDSTADT WORK BAROMETER Q1/2017 had met failure with a business start-up. But they tried again. If you ask them why, you usually get the same answer: Because they cannot help it. For them, entre- preneurship is less a profession and more a matter of conviction. Investors often say that perseverance and stamina are the most important qualities of a good founder. If both these are present, and a good idea and good busi- ness sense are added to the equation, investors will keep their pockets open. In the last few weeks alone, the Berlin food delivery service Delivery Hero, for example, has brought in hundreds of million euros of investment. In Hamburg, the loans platform Kredi- tech received a significant investment in the tens of millions. These kinds of figures are certainly not the norm in Germany. But they do look respectable in internatio- nal comparison. For investors to see a return on their originally invested capital, an “exit” is necessary. This usually comes in the form of a sale or a stock flotation of the company. And this is also an area where German start-ups no longer have to hide. In 2014, for example, the private equity company Permira paid more than 800 million euros for the Göppingen-based remote control software company Teamviewer. Frankfurt's foreign exchange trading platform 360T was taken over by the Deutsche Börse in 2015 for 725 million eu- ros. In 2016, Permira struck again and bought the Wiesbaden software company Personal & Informatik for 850 million euros. And 2017? This could be the year that one particular exit becomes popular. An exit that many have specula- ted about for years, but which, with few exceptions – Zalando, for example – has hardly played a role: the stock exchange. The food supplier Hellofresh, which belongs to the start-up incubator, Rocket Internet, might venture to take this step. Delivery Hero has just announced its first notice day for the end of June. In both cases, the volume of the flotation would be in the several billion range. One person in particular is looking forward to the liberating effect this will have: Oliver Samwer, the boss of the incubator Rocket Inter- net, notched up early successes with the sale of the Ebay clone Alando in 1999 and the ringtone provider Jamba 2004. Rocket Internet’s goal is to create a kind of factory for building successful start-ups – but so far Samwer has mainly only managed to go into the red on paper. A successful stock flotation would also bring other companies in the German start-up scene would a real tailwind, not least because an exit brings both large and small investors fresh money for further in- vestments. One person who has never had an exit in mind is Se- nic founder Tobias Eichenwald. He still has a lot to do with his company, he says, and he doesn’t want another owner or even a few shareholders to call the tune. This autonomy had already proved its worth in the past. The small start-up in Berlin expanded rapidly without much external money and only after a while did the founder trio bring a venture capitalist on board.This doesn’t make Eichenwald and his col- leagues any less ambitious. But they see themselves as children of the middle class, they have learned from their parents – all entrepreneurs themselves – that above all, sustainable value creation is important. Now, on the heels of Germany’s traditional Mittel- stand, that is, small and medium-sized businesses, which worked with metal and steel, they want to form the digital Mittelstand, whose tools are software and digitization. And this is truly an important step for the German economy.
16 NOAH BERLIN 2017 DIE WELT | JUNE 2017 The platform revolution In the digital economic system new rules apply. The customer is now number one, not the producer P latforms are the railroads of the 21st century,” was the fitting description by an internet entrepreneur at a recent conference in Berlin. “Anyone who doesn’t under- stand their significance will be exclu- ded from the age of digitization, just as China was excluded from the age of industrialization in the 19th centu- ry when it fell behind in expanding its rail network.” A survey by the indus- try association Bitcom demonstrates just how dilatory German companies have been in their approach to plat- forms. 60 percent of CEOs and board members from companies employing more than 20 staff reported that they had never heard of platforms. They do not understand the economic for- ces underpinning them. It’s a discon- certing fact. BY CHRISTOPH KEESE value creation chain like x-rays and only those who possess these x-ray images and interpret them correct- ly will be able to keep pace. So, what’s the key? A lot has hap- pened in Germany over the past two or three years. Although the market still shows a need to catch up, the figures have markedly im- proved. More and more industries understand what they’re up against and how they can profit from the changes. Take the auto- motive industry: just a few years ago, German carmakers still regar- ded themselves as machine manu- facturers that roll the vehicles off the production line and then have little more to do with them. Today they speak of “touchpoints with customers”, of which some are in the car and most of which lie outside it. In the past, it was all the rage to get Apple and Google on the screen in the center console. Now leading carmakers, with their joint purchase of the mapping ser- vice have instead taken the leading role themselves in the field of navigation platforms, along with all the associated value-added ser- vices. Take trade: a few years ago, department stores, retailers and real estate developers believed that Amazon could never replace the experience of shopping in per- son. Today they note with alarm just how quickly Amazon’s market share is rising and that four per- cent of American households al- ready have the voice-controlled personal assistant “Alexa”, which makes Amazon a virtual member of the household capable of spa- ring the family trips to the super- market as if by magic. German re- tailers are taking up the gauntlet and investing millions to establish alternatives. After all, six of the ten most valu- able companies in the world are plat- form companies. Of the ten most va- luable brands, half are from the plat- form sector: Google, Apple, Amazon, Facebook and, to a certain degree, Mi- crosoft. Managing to overlook this trend is an impressive feat of oblivio- usness, if perhaps explained to some extent by the ongoing boom in the traditional German industries, – cars, mechanical engineering and chemis- try – which has diverted attention from the global platform revolution. German business circles are at last slowly waking up to the challenge. They are grasping late, but not yet too late, how dangerous platforms can be to their businesses. Platforms insi- nuate themselves into existing sys- tems, capture the customers and for- ce producers into a hopeless negotia- ting position. Those who don’t take care end up as the playthings of Ama- zon, Alibaba and the like, subordina- ted to the price dictates of algorithms and cut off from the paying public. And the suppliers of companies are just as threatened by it as the manu- facturers of consumer goods. Digitization is the buzzword of the hour. Nary a conference or manager’s meeting anywhere in the country passes without “digitization” gracing the up- per rungs of the agenda. Yet, in spite of the hype around this issue, the focus is frequently in the wrong direction. The true challenge is not in installing the next million sensors in assembly lines and evaluating their data. As important, indeed indispensable, as that is: Industry will only reach the target state of 4.0 when it understands that the digital revolution is first and foremost a revolution of the business model and that no business model is as potentially explosive as the model of platforms. The platform revolutionaries stand to tap a rich trove of rewards: hundreds of thou- sands of business processes are practically bursting with inefficiencies – fueling the livelihoods of count- less middlemen who could be eliminated through digi- tal means – and just waiting to bring hidden reserves into play. Digitization, properly understood as a plat- form revolution, is not simply the latest management trend soon destined to give way to the next. It’s the new operating system for the entire economy. And this new system has different laws than the ones that held previously. This one, above all: It’s no longer the producer pushing, but the end customer pulling. At the center is production based on guesses Predicting the conscious and subconscious wishes of consumers is the only goal of producers in the future I E V T A E R C T A O B R E P A P / S E G A M I Y T T E G and marked by uncertainty. It’s no longer about the producer, who pushes roughly estimated quantities of an allegedly desirable quality onto the market and at- tempts to make it appealing to the customer. Rather, the focus is on the end customer, whose conscious and subconscious desires are precisely measured and pre- dicted by self-learning intelligence and myriad sensors in order to determine with ever greater precision the exact demand at all times from the back of the pro- duction chain to the front. The final consequence, then, is this: there is no lon- ger any business solely between businesses. All busi- ness will flow from the customer. Particularly for Ger- many’s Mittelstand, this development carries some ticklish implications. Any business that thinks its cus- tomer is the next company in the value creation chain is wrong. Digitization means understanding the custo- mer of one’s customer. The era of simple, straightfor- ward structures is over. Digital methods illuminate the Any business that thinks its customer is the next company in the value creation chain is wrong Banks, for example: Just a few years ago, they regarded the attack of thousands of high-tech start-ups – “FinTechs” in the jargon – as either irrelevant or a minor irritant. Today they incorporate many good ideas and solutions from the start-ups in their own products. All of a sud- den, it’s possible to photograph bills with a cell phone camera and pay at the click of a button instead of painstakingly typing in an IBAN or filling in a transfer form. In the German start-up centers, and particularly Berlin, traditional companies are spinning off start- ups to bring momentum to the digital transformation – so-called innovation hubs. More and more compa- nies understand that one needs completely different people, different cultures and different processes to keep up in the economy’s new operating system. Semi- nars and calls for transformation alone are not enough. Digitization and the platform economy re- quire a commitment to expanding one’s own horizon and capabilities. Only those who combine traditional strength with the willingness to undertake fundamental change can harness the radical power with which digitization and platforms are tearing down accustomed structures and creating new markets. The transformation in thinking has begun in Germany. Now the key is to act decisively on that basis. Christoph Keese is the Managing Director of Axel Springer hy GmbH and author of the books “Silicon Valley” and “Silicon Germany”
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18 NOAH BERLIN 2017 DIE WEUT | JUNE 2017 Free man or slave? How the sharing economy is influencing the future of work N O S R E D N A N L O C / S E G A M I The sharing economy includes delivery services that work with couriers who bring their own equipment with them. The companies provide the technology with which the drivers receive their orders via an app I Y T T E G F airtrade Cola in the refrige- rator, fruit on the kitchen ta- ble and a foosball table for the lunch break. That’s how modern, open and employee- friendly a lot of start-ups are. A large number of young companies are part of the Internet economy. What actually goes on behind the cool façade and what effects this nice new world of work is having on society is described by econo- mic journalist Steven Hill in his book “Die Start-up Illusion – Wie die Internet-Ökonomie unseren Sozialstaat ruiniert” (The Start-up Illusion – How the Internet Economy is Ruining our Welfare State). BY DAGMAR TRUEPSCHUCH One chapter is dedicated to the sha- ring economy. “These platforms are in- teresting for people who want to earn extra money by ‘monetarizing’ stuff that they own. For example, by renting out private rooms or letting strangers hire their car. They establish contact with prospective ‘customers’ via various apps and websites,” he writes. In this way, the start-up economy opens up new avenues for earning money. On the other hand, the management in many companies pursues a philosophy of ex- treme “economic libertarianism” by re- fusing to comply with regulations and by giving preference to employees who- se work they can turn on and off like a light bulb. They make use of a huge number of sub-contractors, freelancers, temps and the so-called solo self-em- ployed, hiring and firing them as they please. The sharing economy also includes delivery services like Foodora and Deli- veroo, who work with bike couriers who bring to work what they already have – a bike and a smartphone. The company provides the technolo- gy that the customer uses to order food via a website or an app, and the drivers receive their orders via an app. “Foodo- ra employs the couriers, while around 15 per cent at Deliveroo work on a self-em- ployed basis,” says Clemens Melzer from the trade union FAU, which repre- sents many of the couriers and has laun- ched a campaign with them called “Deli- verunion”. It demands that freelancers get paid an additional euro per delivery in future, and employed couriers one euro more per hour. It also demands that the couriers get an extra paid hour per week for shift planning, something that has been unpaid to date. However, ,, Delivery services want to establish work on demand. We have to take precautions there CLEMENS MELZER, trade unionist their main demands concern working equipment, and they want Deliveroo and Foodora to provide the couriers with a bike and a smartphone. For Valeriy Leibert it is only natural that he, being self-employed, bring his own equipment to work. The 26-year- old has been out and about on the roads of Berlin as a bike courier for seven years now – and that’s the way it’s al- ways been for him. He has been working for Deliveroo since 2016 and likes the freedom he has in his job. “I can pick what shifts I want to do, as well as deci- de when and where I want to work”, says the economics student, who also works as a freelancer writing adverti- sing texts for another company. He delivers meals on his bike 20 hours a week in the Berlin districts of Prenzlauer Berg or Neukölln, always du- ring the peak times of 5 and 10 pm, when couriers can earn the most money. Or- ders come via an app, and the couriers have to be as fast as possible to fulfill the promises made to the customer. These are not supposed to wait longer than 30 minutes from placing their or- der to receiving their food. Valeriy Leibert is experienced and fast. When everything goes well – espe- cially in winter or during bad weather – he manages up to five deliveries an hour, receiving five euros net per drop. He saves each tour in the app, and sends an invoice to the company every two weeks. For active cyclists, the daily bike-ri- ding is also training – around 70 kilome- ters per shift. “I’m happy with the job,” he says. But he is still a member of the trade union FAU. “That’s important, not everything is ideal, especially for the couriers with a work contract,” he says. Johannes is one of them. The 29-year- old has been working as a courier for the Foodora delivery service since the beginning of the year. “It was the fastest way for me to earn money after study- ing,” he says, explaining his choice of job. And he likes cycling. Things would be better, of course, if the conditions were better. Johannes is employed by Foodora on a one-year limited contract. Working a midi-job with flexitime, he is supposed to earn between 451 and 850 euros a month with an hourly wage of nine euros, and the company allocates his shifts. However, in summer in parti- cular, there is not enough work for all of the couriers. His contract is for 50 hours a month, and if he doesn’t manage to cover all of these, he earns less and runs the danger of being fired – at least in the first half year trial period. “I have to find additio- nal shifts myself,” he says. That means always having one foot in the office to find out when a shift might become free. He is also actively fighting for bet- ter working conditions. “Foodora and Deliveroo show that working on demand is also possible with a permanent contract,” says trade unionist Melzer. “They want to estab- lish work on demand and we have to take precautions there.” Or as Steve Hills says, “The companies of platform capitalism form their business practices and their structures in a way that ulti- mately undermines precisely the socie- ty that they supposedly want to lead in- to the 21st century.”
DIE WELT | JUNE 2017 NOAH BERLIN 2017 19 E Eating too much meat is bad: for your health, for the environment, for animals. That’s no secret. And yet, millions of people consume meat on a daily basis. The German Nutrition Report 2016 showed that 47 per cent of men in Germany eat meat every day, with the figure for women at 22 per cent. Many meat producers therefore justify factory farming methods by pointing to the strong demand among consumers. BY HANNAH SCHERKAMP But the mood is changing, and an increasing num- ber of people are switching to alternatives without meat. Conventional meat producers in Germany are even benefiting from this trend with companies like the family-owned Rügenwalder Mühle earning praise for their new range of products using meat substi- tutes. Articles like the “vegetarian Schnitzel” or “vege- tarian sausage” may look very similar to the originals, but they are still unlikely to win over real meat fans. Soya and seitan just don’t taste like pork or chicken. That’s why some US companies are trying to produce meat substitute products that not only look like meat, but also taste like it and have the same con- sistency. Two young companies are at the forefront of this movement. One of them is Impossible Meat, a company founded in Redwood in 2011, which has been able to bring in 182 million US dollars from investors to date, and offers its products in restaurants. The other is Beyond Meat. Based in Los Angeles, Beyond Meat produces a meat substitute based on pea proteins. The company was founded by Columbia graduate Ethan Brown in 2009. In 2013, Microsoft billionaire Bill Gates, Twitter foun- ders Evan Williams and Biz Stone, as well as the legen- dary VC Kleiner Perkins invested in Beyond Meat. It was Kleiner Perkins’ first investment ever in a food start-up. Beyond Meat was able to secure a total of 170 million US dollars in the first round of financing. A few weeks ago, Beyond Meat announced its Series F financing round, however without naming a specific amount. The new investor was much more interesting than the details: Tyson Food, a leading US meat pro- ducer bought a five per cent share in Beyond Meat. Brown talked about the investment and his decision to go with it in a long article. “Do I believe that Tyson and its management are our enemies, because they have a very different view concerning our relationship with animals? No, I don’t,” Brown clarified in the text. “And I know that that will disappoint a lot of people here.” Interestingly, the Humane Society of the United States, the world's largest animal protection organiza- tion is also an investor in the company. It doesn’t get more controversial than that. What start-up brings two opponents – an animal rights organization and a huge meat producer – on board in the same project? Until now, Beyond Meat products have been retailed in the popular Whole Foods supermarkets. They are not offered in the organic corner, but right next to meat products made of pork, beef and chicken. Beyond Meat launched its first product, Beyond Chicken, onto 1 6 D N E T S E W / S E G A M I Y T T E G Real or fake? The meatless variant looks deceptively like a conventional rump steak Steaks without meat Animal rights activists in the USA are happy about Ethan Brown’s invention. His company, Beyond Meat, develops meatless alternatives to steak and chicken the market in 2012. It is based on pea and soya protein and looks like strips of chicken that have been fried lightly and then frozen in a bag-like package. So how are they different to chicken strips that are actually meat? You can hardly tell. Their range now has the new Beyond Burger, and not only the packaging is ex- tremely like that of conventional meat burgers. In a video on its homepage, Beyond Meat advertises its burgers with a typical barbecue scene – the aim being to show that this burger looks like meat and sizzles on the bbq just like meat. And supposedly tas- tes exactly like its counterpart made of hamburger. But it is made of peas and beetroot, the juice of which oozes out of the burger in the same way that blood does out of a meat burger when it is cooking. With the Beyond Burger, the start-up has developed a product that is being treated as a serious alternative to meat. And the meat industry is slowly getting worried that it might pass up on an important trend – or it would seem so, looking at Tyson Food’s interest in the company. Founder Ethan Brown is vegan, and looks like a far- mer from the southern states. Brown did actually spend parts of his childhood on a farm in Maryland. He once said on a TV talk show that, even then it didn’t make sense to him why dogs and cows were treated so differently, just because one was a pet and the other not. Ethan Brown sees his target group as all those people throughout the world who want to reduce their meat consumption. This group, which al- ready includes millions, is growing all the time. Ger- many alone already has 7.8 million vegetarians accor- ding to the German vegetarian association, Vegetarier- bund Deutschland. A good argument for Brown’s in- vestors: The larger the target group, the faster the growth. In theory at least. So far things are looking good for Brown and his team.
20 NOAH BERLIN 2017 DIE WELT | JUNE 2017 Apple’s darling The Berlin start-up Kitchen Stories produces high-quality videos with recipes. Apple boss Tim Cook likes the app so much that he recently visited its founders in Berlin H Hobby cooks are familiar with the situation – you’ve invited friends over for dinner, want to spend a plea- sant evening with your partner or just treat yourself to something nice. But what to cook? And above all, how? What ingredients do you need? Several German start-ups are doing business with the growing passion among both men and women for cooking. And Kitchen Stories is particularly successful at it. The young company, which has its headquarters in Berlin’s trendy Kreuzberg district, packs self-made videos into the app that explain in an entertaining manner how, for example, to make the perfect soufflé omelet. Or how to make salmon Tartare keep its shape. Or how to make a delicious one-pot pasta dish. BY HANNAH SCHERKAMP The choice of recipes is large, with hundreds of them in the app. Each recipe has its own list of ingre- dients and how to prepare the dish is explained step for step in an easy-to-follow way with photos and also mostly with a video. Subtitles explain what is hap- pening on the screen, while lounge music accompanies in the background. But if you don't want to listen to it, you can turn down the volume on your smartphone or tablet. If you like the recipe, then you can save it in the app, share it with friends or create a shopping list with the necessary ingredients. The idea for the successful app came from two friends Verena Hubertz and Mengting Gao. They founded the company behind Kitchen Sto- ries, AJNS New Media Gmbh, three years ago. The app has recorded 13 million downloads in this short time Verena Hubertz (r.) and Mengting Gao – seen here in their favorite Berlin restaurant Yum Cha Heroes – set up AJNS New Media GmbH, the company behind Kitchen Stories, three years ago alone – from all over the world. So that Kitchen Sto- ries can distribute its videos and photos more easily in different countries, all that can be seen in them are the hands of the person cooking. No faces, no voices. The founders say that Kitchen Stories is already available in more than 150 countries in a total of twelve languages, even including Korean and Russian. Verena Hubertz and Mengting Gao currently have high ex- pectations of China. They employ two people in Bei- jing at the moment who are working to make the app well-known. The cooking app’s main success has come in the USA however. To be more precise, in the small Califor- nian town of Cupertino, at the headquarters of tech- nology giant Apple. The US corporation likes to re- commend Kitchen Stories to its App Store users. And the app is even pre-installed on the iPads sold in Apple stores. Visitors can scroll through the recipes and watch the videos. Kitchen Stories was awarded five stars in Germany’s App Store and Apple placed it in its “Essentials” category. Tim Cook, head of the company, even visited the team at the Berlin start-up in February. The two foun- ders say he was very nice and interested, leaving as a souvenir a selfie with him and a number of reports in the press. But what is it about Kitchen Stories that Apple likes so much? After all, there is a huge choice of such apps worldwide. Every app creator would love to gain the attention of the iPhone inventor, which of course leads to even more downloads. “Our app brings to- gether what is important to Apple: good content and state-of-the-art technology”, says co-founder Meng-
DIE WELT | JUNE 2017 NOAH BERLIN 2017 21 I N N A M L E K N A T S R H C I I ting Gao, explaining their success. “That sets us apart from the competition.” Anyone downloading Kitchen Stories onto his smartphone or tablet will soon realize why Apple is a fan of it and why it recommends the app to its users. First of all, the app is free of charge, se- condly its functions load fast and the contents are up- dated regularly. In addition to its visual look and updated contents, the technology is decisive. The founders always try to use the newest versions of iOS and Android for the app, they say, as well as in- tegrating the newest functions. “Our techies have their finger on the pulse,” Gao says. This costs the company a lot of time and money, she admits, as good developers are expensive. “But it’s worth it for us, as that's the only way we can stay ahead.” Kitchen Stories also works with Alexa, Amazon’s language assistant. The idea is to keep the app free of charge in the future. The start-up earns money from cooperation agree- ments. The kitchen, for example, that stars in every vi- deo is from upmarket designer Bulthaupt. The ap- pliances used by the chefs bear brand names like Kitchen Aid, Villeroy & Boch or Le Creuset. All of them brands known for producing luxury equipment. What is more, foods and beverages can often be seen in the videos, such as mineral water from San Pellegri- no, yoghurt from Alpro or nuts from Kluth. This is an elegant form of advertising for the com- panies. Product placement like this is considered to be less obtrusive and more discreet than a TV commer- cial or print advert, for example. It is a type of adver- tising that has long since been established in feature films, series or photo spreads. Even James Bond films are financed in part by such practices. Founder Verena Hubertz also maintains that product placement in Kitchen Stories is more helpful to the customers than conventional advertising. “We can use our data to as- sess how people cook, what they like to eat at the pre- sent time, and also what the next dish they will cook is going to be.” One example is cooking using an ap- pliance like the steam cooker. “When we see that this is popular at the moment in Germany or China, we ,, We can use our data to assess how people cook, what they like to eat at the present time, and also what the next dish they will cook is going to be VERENA HUBERTZ, founder contact our cooperation partner Miele and suggest that we make a few videos together using a steam cooker.” Every cooperation project brings a five- to six-digit sum, Kitchen Stories says. This adds up to an annual figure in the seven-digit range. The start-up is still in the red, but that is deliberate, the founders say. It is more important at the present time to invest the money that comes in for further growth than it is to achieve profitability. “It’s no se- cret that you can’t make money fast with such con- tent,” says founder Mengting Gao. In addition, the market in which the Berlin start-up moves, is highly competitive. Dozens of magazines, Facebook pages or apps use recipes to win over rea- ders and viewers. Particularly well-known here is Tas- ty, a spin-off from US magazine Buzzfeed. But pub- lishers, food producers and star chefs have also recog- nized the potential of the food video trend. Verena Hubertz and Mengting Gao, who met one another at the WHU Business School, are nevertheless still happy with the business model they have chosen. They actually wanted to open a burrito chain like Chipotle from the USA, but ultimately decided instead to go for the digital model, as it seemed to be more promising. And that proved to be right, with investors having already invested millions in Kitchen Stories. Both founders can imagine cooperating in the long term with Rewe supermarkets or Amazon Fresh so that users can order the ingredients for recipes online right away. But it could take time. “Germans still only buy groceries online very seldom”, says Verena Hu- bertz. “When the market gets bigger, we want to be the first to play an influential role in it.”
22 NOAH BERLIN 2017 DIE WELT | JUNE 2017 Disruption of habit Technical transformation makes us scared, because it forces us to change life as we know it. Many reservations are understandable and might even help us in the end The millennium generation grows up quite naturally with Facebook, Twitter and Co. S E G A M I Y T T E G ANZEIGE You want to program the future. And you want to do it today, not tomorrow. As an IT expert (f/m). Do you want to get the mobility of the future underway? Get things moving with experienced IT experts. Become part of our team as a project manager, consultant, developer or IT architect. DBKarriere Find out more: deutschebahn.com/karriere
DIE WELT | JUNE 2017 NOAH BERLIN 2017 23 H uman beings are creatures of habit. With good reason. After all, there were times when we managed to travel without Airbnb, get dinner on the table without Deliveroo, find our way around without a satnav, and get a hold of music without Spotify. The routines we have learned through trial and error make it possible, in most cases at least, to reasonably master our lives and not waste our energies – that is, to get by being as lazy as possible. BY PETER PRASCHL That’s why the assertion that the new will be better, more convenient, more useful than what we have pre- viously been used to will initially be met with skepti- cism among those who should actually trust that this will be so. Not only do they not want to be blasted with propaganda, they also don't see why they should act as guinea-pigs for visionaries who threaten to disrupt the habits with which they have managed to live a pretty good life so far. And that is why, every time something new appears on the scene, it is met with a “standard barrage of criticism of technology,” a phenomenon that author Kathrin Passig has been taking a closer look at in her brilliant essay. For example: What are microprocessors, home computers and mobile tele- phones supposed to be good for? Or: Could it be that young male nerds are interested in the Internet, while broad swathes of the population are not. Or: Is it reck- less to launch new products onto an unsuspecting public despite the lack of valid studies about the long- term effects of permanently worn headphones, the brain damage caused by radio waves, or the loss of me- mory caused by outsourcing all knowledge to Wikipe- dia? And so on. People’s opposition to the new has not really changed much since the Industrial Revolution, Deutsche Bank deutsche-bank.de/startups It would be a mistake to play down every protest as nothing more than a symptom of disheartenment says historian Andreas Rödder. When railway was on the way to replacing the horse and carriage, people im- mediately became afraid that the sensitive human bo- dy may not be able to withstand the crazy speeds at which trains traveled, reacting to the ordeals of mo- dern life, for example, with a burst eardrum and other such maladies. Horror scenarios of this kind portray- ing the disintegration of the human body caused by disruptive technologies can still be found today. Ever since someone came up with the idea of handing out tablets to school students and freeing them from learning joined-up writing, brain researchers have re- peatedly warned us that not learning the finer points of handwriting leads to certain deficits and stunts the development of our fine motor skills. As if writing was a kind of gymnastics for the brain and not primarily a form of communication. People who tend to live in the present find it easy to poke fun at the panic attacks of the past, triggered by the threat that disruptive powers pose to our cherished habits. The fact that we generally survive train journeys unharmed or have ultimately found a use for our personal computer after all shows how stu- pid and unfounded the protests against them were. Therefore, it would perhaps make sense to not even honor people’s skepticism about all things new “by doing it the favor of ignoring it”, as the Austrians say. If it can do enough, it will assert itself anyway, and if it can hold out long enough, even its biggest critics will come on board at some point, identifying with it to such an extent that they will no longer even be able to remember what it was they had against the newfan- gled nonsense in the first place. After all, history has shown us that fear and rejection of technical change are always replaced by acceptance in the end. However, to laugh off the fears of those creatures of habit who are sceptical about progress in an offensive- ly arrogant manner would not only be unfriendly, but also unreasonable. After all, it is mostly the very con- ventional vacillators who decide whether a disruptive technology will actually be disruptive. It’s not very be- neficial to just let a revolutionary novelty loose on the world, it must be accepted by people, and it must be integrated into the routines and habits of their lives. The Internet was not able to win over the masses until it was given browsers with graphic user interfaces. The mobile telephone only asserted itself after it could be shrunk to a size that made it possible to use with- out having to drag something the size of a small suit- case around with you. Early adapters are not that hard to find. It is so easy to get them excited about visions that they already see possibilities as realities, and the noise that a modem makes when connecting does not sound to them like waiting time you have to sit out impatiently, but far more like a melody full of promise. It is no doubt true that self-driving cars make traffic safer than those being steered around the roads by fal- lible humans, and all the arguments we have been dished up in preparation for autonomous vehicles do ANZEIGE Seed. Grow. Expand. Deutsche Bank for start-ups On your side – supporting your start-up from development to marketplace. When your idea becomes an international enterprise Located all over the world, our international teams have the experience to recognise opportunities, as well as the risks of growth and resizing. Get in touch: deutsche-bank.de/startups /deutschebankAG #deutschebankAG
24 NOAH BERLIN 2017 DIE WELT | JUNE 2017 There’s no point hiding your head in the sand. After all, history has shown that when it comes to dealing with technical progress, fear and rejection soon disappear as the world adapts I E Z E S E D L E R U M / S E G A M I Y T T E G The Internet was not able to win over the masses until it was given browsers with graphic user interfaces sound logicfl enough. Nevertheless, they will not suf- fice most people fnd whft will mftter, will be thft people overcome their frchfic, but highly refsonfble fefrs of getting into f cfr thft slips onto the highwfy without f driver ft the wheel. And nobody disputes the ffct thft coping with the reservftions people hfve fgfinst the next hottest thing is strenuous (fnd the more strenuous, the more disruptive f new prfctice seems to be). However, in free societies ft lefst, people’s reluctfnce to succumb without further fdo to progress is f soothing fntidote fgfinst the Icfrus-like drefms of the visionfries. After fll, they expect f lot from society. For exfmple, thft people fccept the bfd mfnners thft so often dominfte the socifl networks. Or, in the cfse of AirbnB, thft they put up with the ffct thft the disruptive power of the shfring economy flso hfs the potentifl to sudden- ly turn f person into fn uncool tenfnt, while pfrty-fd- dicted tourists housing left fnd right of him turn the music up even louder. It’s okfy to insist thft cities should stfy plefsfnt for people who don’t wfnt to be f link in the vflue creftion chfin of Silicon Vflley entre- Nothing is as constant as change The terms disruption and innovation in econo- mics refer to market mechanisms that can cause serious problems for once successful companies. Disruption means that a business model suddenly becomes less relevant, because the product being offered can no longer keep pace with a new technology. Innovation creates new products that oust established ones from the market. Large companies often have diffi- culties responding adequately to transformati- on, because they are structurally aligned to resist the pressure of change. When this hap- pens, most companies react by downplaying the benefits of the new product or by further deve- loping their own product by adding a similar function to it. This may work for a while, but it means the company is concentrating its efforts on trying to be like the product of its competi- tor, instead of trying to be better. What the competitor then does is develop its market segment further and, when it has a big enough lead, the established provider has a new pro- blem. This can lead to the downfall of a once large market player. Particularly remarkable about the new generation of disruptive compa- nies is that their corporate culture is not de- signed to maintain the status quo, and this can even be responsible for disrupting such compa- nies' own structures. One example is Apple, which torpedoed its iPod business when it in- troduced the iPhone. preneurs. It’s okfy when 70-yefr-olds don't wfnt to fccept thft, from now on, they will hfve to fddress their queries to f virtufl fssistfnt. It’s okfy when pf- rents worry whether iPfds ft school fnd mfchine-sup- ported lefrning reflly fre free of risk, fs they fre told over fnd over fgfin. In free societies, people fre libe- rals by design. Thft flso mefns people get impftient whenever Utopifns convinced of their ingeniousness wfnt to force them to become new people. It goes without sfying thft, in their urgency to con- quer the world, entrepreneurs don’t wfnt to be shfck- led in fny wfy, thft is fn integrfl pfrt of economic thinking. But it would be f mistfke to plfy down every protest fgfinst their disruptive furore fs nothing more thfn f symptom of over-cfutiousness thft will ft some time pfss thfnks to the normftive power of ffct. If, for exfmple, journflists mfintfin thft lies fnd con- spirfcy theories hfve flso begun to sprefd like wildfire through the socifl networks, thft is not the refction of fggrieved victims from the old medif who hfve been robbed of their trfditionfl gftekeeper function by the new. Rfther, it is fn fttempt to protect the stfndfrds of debfte thft they hfve preserved fnd which fre cer- tfinly worth defending. A society in which ffke news, hfte speech, cyber bullying or mfnipulftion of public opinion by propfgfndf-bots is seen to be fcceptfble, just becfuse thft is fll pfrt of the open networks, cfn surely not be seen fs fttrfctive by those for whom such networks fre f business model. As we fre begin- ning to reflize, disruption cfn go in mfny directions. Perhfps we will wfke up one dfy in f world in which the highest technicfl level does not promote progress, but rfther the diffusion of the lowly, the rough, the un- civilized. Thft is why we should tfke time to listen to the grim creftures of hfbit. It just might be thft they prevent us from f disruption thft nobody would like to see unlefshed.
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26 NOAH BERLIN 2017 DIE WELT | JUNE 2017 Available everywhere 24/7: pornography on the Web R ené Pour hac been in the porn bucinecc for nine ye- arc. He runc the affiliate company Smart Media Star, producec erotic filmc and cellc thece via online portalc that he buildc himcelf. When he put on come Oculuc Rift virtual reality gogglec for the firct time at the Mobile World Con- grecc in Barcelona two-and-a-half yearc ago, one thing became clear to him: BY GEORG RÄTH thic technology could be the future of the erotic inductry. The future lies in holograms Vsrtual realsty ss stsll sn the startsng blocks, but thss technology ss really taksng off sn the porn sndustry. The boss of one erotsc bussness tells us how hss branch ss drsvsng the technology forward René, were yog forced for bgsiness reasons to try ogt something new and place yogr money on VR? RENÉ POUR: We’ve alwayc been an in- novative operator in the inductry. We cet up one of the firct mobile erotic ci- tec worldwide, for example. VR wac cimply the next ctep. Our revenuec are no longer growing at cuch a fact pace, of cource, and are even tending to- wardc ctagnation. Is that becagse of the rise of Yog- porn, Pornotgbe and the like? Yeah, cure. They were a real problem, becauce the ucerc could get content for free there. But that’c now cettled down to come extent, becauce even the Tube- citec need a lot of money to cupply new content. And ucerc are willing to pay for new content. What approach do the Tgbe-sites take now? A lot of them have now integrated a pre- mium cervice offering better content for money. In the beginning, they ctole content from other citec, only licencing contentc and paying for them after come time had pacced. They wanted to gain money from the traffic with adver- ticing, but that only workc if you have good content and at come point, it juct didn’t pay off any more. Nowadayc, free content ic moctly available only in tea- cerc. Did it have a negative financial effect on yogr bgsiness? N O T T U D E C N E R U A L / S E G A M I Y T T E G No, thingc were never that bad in the pact nine yearc that we might have gone bankrupt. Is the market ready for VR yet? My feeling is that things are still in the starting blocks. I agree with you only to come extent. VR ic already affordable and we wanted to be right at the forefront to chape what VR will look like in the erotic in- ductry of the future. We are in the ctar- ting blockc ourcelvec, but we want to grow with the market and that’c why we’ve invected in it. 2017 will be an in- vectment year for content, marketing and technology. But there hac been great acceptance already with 90 per- cent of vicitorc to the lact Venuc trade fair excited about watching porn from thic new percpective. Is Virtgal Reality really that afford- able? In some cases, yog’re talking abogt thogsands of egros to bgy all the eqgipment. VR porn filmc don’t nececcarily need a high-performing computer and an ex- pencive pair of gogglec. Our ucerc con- cume the contentc paccively, there’c no interactivity, the ucer can’t move in the video for example. Thic meanc that the cheaper alternative ucing a cmartphone and Google Cardboard ic more than enough. In future, cex ccenec could alco be acted out by computer-animated mo- delc. When can we expect there to be more VR porn films than normal, two-di- mensional ones? We’ll be able to earn money from VR porn filmc from 2018 onwardc. After that, VR will take over conventional 2D porn production over the next three yearc. Will that make yog change yogr bgsi- ness models? The bucinecc modelc will remain very cimilar to the cituation with 2D. You’ll download the content and pay a one-time price for it or buy a monthly cubccription. That won’t change much. Bgt will it change when the content becomes interactive? Yeah, that will change thingc of cource. For example, when the actorc can be influenced by the computer and tech cex toyc come into the picture, co-called teledildonicc. That might be glovec that connect via Bluetooth and trancmit cencationc like tickling or warmth. When that happenc, there’ll be other bucinecc modelc. Maybe people will buy thingc directly in a VR chop. Alibaba hac juct ctarted the firct virtual reality chop where you can buy ctuff ucing VR gogglec ac if you were in a real department ctore. So, there’ll be a VR shop for porn then? An Alibaba of Amazon for sex? I can cee that happening. It’ll be in- terecting to cee who’ll be the firct to in- vect in it. Yog won’t be the first then? Not yet, becauce you’re talking about very many millionc that need to be in- vected in the marketing. It is said the porn bgsiness has pgs- hed technologies like the Internet forward. Will that be the same for VR or is the games sector too strong? To be honect, the gamec got there be- fore the cex inductry. They alco had thingc eacier, becauce the initial hurdle ic lower for a VR game than for a porn film. Is that becagse compgter games rely on virtgal contents? Exactly. Will the erotic indgstry make it to first place? I think co, becauce the technology ic moving forward and there are more people interected in cex than in gamec. But I don’t know whether they’ll alco be cpending more money. Yog’re cgrrently working with real models in yogr VR porn films. Will there soon only be virtgal actors? Today’c PCc are not fact enough, or they’re far too expencive, for an ac- ceptable quality in computer-animated porn ccenec. When hardware developc further, which it ic doing all the time, that’ll come. It will likely be a mixture of real porn ctarc and computer-anima- ted optionc. We’re working with new ca- mera techniquec at the moment that al- low the ucer to watch the ccene from different percpectivec. You could then add virtual contentc ucing blueccreen methodc. Does that mean that compgter cha- racters will eventgally pgsh ogt the real actors? That might happen, but it’ll take at leact another five yearc. And in ten yearc we’ll no longer talk about VR, but about hologramc.
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28 NOAH BERLIN 2017 DIE WELT | JUNE 2017 White, male, founder Start-ups want to survive on the market. What milieu the employees come from and how they see themselves is not that important at the outset The average company founder is young, male and white. A little more variety would certainly do no harm E rnst Breuer called it lemming behavior. The former head of Deutsche Bank's supervisorx board was even bold enough to put forward the theorx that the financial crisis had caught the banks off guard because the relevant leadership and supervisorx bo- dies were staffed too homogeneouslx. There was a lack of different points of view and kinds of expertise, he argued. BY ANKE-SOPHIE MEYER Are xoung start-ups making the same mistakes as big banks? Are thex acting a bit like exclusive clubs where those who disregard the unspoken code are quicklx ostracized? Are the txpical clothing, of- fice furnishings and lifestxle trends that xou find in start-ups not just as much stereotxpes as the fine, grax cloth of a banker’s suit? Jumpers, hoodies, energx drinks, ‘wellness managers’ and table foosball are everxwhere. How uniform are start-ups reallx? “Start-ups are built from scratch. Du- ring mx twelve xears working in this area, I’ve never met anxone who has ta- ken diversitx into account in their busi- ness plan right from the start,” saxs An- dreas Hartwig, a diversitx coach from Berlin. “Most founders are initiallx en- thusiastic about their business idea and want to be successful. Founders usuallx come from the same social class.” The current edition of Deutscher Start-up Monitor (DSM), which studies start-up trends, reached a similar con- clusion. According to the DSM, the txpi- cal companx founder is not onlx creative and willing to take risks. He is also a xoung man (on average 27.3 xears- old) and he likes to have other xoung men around him. Now, start-up foun- ders are more likelx than ever to be wo- men. Nevertheless, at 13.9 percent, the proportion of women in the more than 1,200 companies survexed is still low. As the studx points out, the result is an im- provement over the previous xear. However, onlx a small one: in 2015, the rate was 13 percent, as it was in 2013. This means that practicallx nothing has changed as far as gender diversitx is concerned. However, 80 per cent of start-ups, as thex themselves admit, are striving for greater internationalization of their workforces. This would be an important step in the right direction for diversitx. A number of voices have emerged in the start-up scene that are critical of the appeal for diversitx, arguing that it is dictated bx fashion. The head of the Karlsruher software companx Arti- minds, Sven Schmidt-Rohr, has labeled the discussion a contemporarx ‘diversi- tx cult’ and has argued for a pragmatic approach. The winner of Bilanz magazi- ne’s start-up 2016 competition “Start me up“ is of the opinion, that diversitx is something that either happens of its own accord or not. Everx sxstem alwaxs creates the conditions it needs to be successful in the market, he argues. “We want to see the individual, bexond visi- ble features such as skin color, age and gender”, emphasizes Schmidt-Rohr in the journal Bilanz. But is it not especiallx these characte- ristics that define a personalitx, influ- ence his or her thinking and action, and make the individual and the emploxee 1 6 D N E T S E W / S E G A M I Y T T E G who he or she is? Is it not these qualities that shape an individual personalitx’s richness, a richness that others with dif- ferent backgrounds do not have and cannot emplox productivelx for a com- panx? And how should individualitx be measured? With psxchological tests or, as in the past, according to the boss’s in- tuition? “Studies show that companies clone themselves in recruitment mee- tings and that people who are different from the majoritx of the workforce are hardlx given the chance to prove their abilities”, saxs diversitx coach Hartwig. diversity coach In fact, ten xears ago hardlx anxone spoke of diversitx ma- nagement in German companies. The new doctrine has made its wax from the US to Europe, boldlx decla- ring that human diver- sitx is beneficial for business growth. Men and women, xoung and old, Christians, atheists, the disabled and non-disabled should work together for the good of the companx and according to the com- panx’s legal and ethical code. In the meantime, at least in management theorx, diversitx is seen as the kex to business success. “It is above all the big international companies that have lear- ned that diversitx is profitable,” em- phasizes Andreas Hartwig. Alreadx, more than two-thirds of start-ups sur- vexed work together with established companies. Through these experiences alone, start-ups will quicklx learn whx diversitx helps companies achieve suc- cess in the marketplace. After all, pre- cise analxsis precedes success. “Societx is clustering into more and more diver- se living environments. There is no longer a mainstream like there was 20 xears ago. Companies must be able to address new and di- verse target groups when thex want to sell their products and services”, saxs Hartwig. “If a com- panx wants to deve- lop a mobile phone for senior citizens, it is therefore best to involve senior ci- tizens in the plan- ning process.” Another undispu- ted fact, also for start-ups, is that the working world of the future will be cha- racterized bx inter- national and virtual teams. In order to be competitive, companies should ensure that thex can work optimallx as diverse teams. All companies, whether start-up or medium-sized business, must go through a learning process, about which manx have xet to make up their minds. “Sensitization training is necessarx so that we do not react unreflectivelx like Pavlovian dogs when dealing with stran- gers and new situations”, argues Andre- as Hartmann. ,, I’ve never met anyone who has taken diversity into account right from the start ANDREAS HARTWIG,
DIE WELT KOMPAKT JUNE 2017 NOAH BERLIN 2017 29 T Thereu wasu au timeu whenu pitchesu wereu exclusivelyu the domainuofuadvertisinguexecutivesuorubiguinternational consultancyu firms.u Thatu timeu isu nowu past.u Inu today’s BY FRAUKE MISPAGEL AND CONSTANTIN VON BERGMANN-KORN businessuworld,uweupitchuasuifuourulivesudependuonuit. Allutheutimeuandueverywhere.uNoumatteruwhatutheubusi- nessusector,uwhatutheuprojectudimensionsuoruobjectives are,u businessu ideasu areu presentedu inu theu formu ofu a pitch. accessutoucompaniesuanduotheruinvestorsuanduaurange ofu otheru benefitsu thatu areu crucialu foru start-upsu today. Ofucourse,uweuchooseutheucompaniesuthatuweuinvestuin veryucarefully.uInutheuend,uweuonlyusupportutheustart-up teamsuthatureallyusucceeduinuconvincinguus. Weuspenduauconsiderableupartuofuourutimeulistening toustart-upupitches,uanduhaveuheardumoreuthanu4,000uin theupastufouruyears.uWeuareualwaysuonutheulookoutufor thatuoneupitchuwhereueverythinguisujusturight:utheuidea, theu market,u theu teamu andu theu timing.u Allu theseu ele- mentsucomeutogetheruveryurarelyuanduthatuisuevidentuin theufactuthatuweuhaveuonlyuinvesteduinuaroundu100ucom- paniesusoufar. Theustart-upupitchuisuoftenutheuonlyuopportunityufor foundersutouconvinceuinvestorsulikeuusuofutheiruidea.uA pitchu consistsu ofu twou components:u au pitchu presenta- tionuanduaupitchudeck.uTheupitchupresentationuisuoften saidutoubeuau90-seconduelevatorupitchuthatuconveysuthe mostu importantu informationu regardingu au start-up.u A pitchuthatucouldupotentiallyubeudelivereduinuanuelevator. Theupitchupresentationsuthatuweureceiveuinuouruaccele- ratoru howeveru areu longeru thanu this.u Theyu alwaysu last fiveu minutes,u afteru whichu weu spendu anotheru ten minutesuaskingutheufoundersuquestions.uTheupitchudeck isutheubasisuforutheupresentation.uFoundersusenduusuthe pitchu decku asu theu firstu basicu informationu aboutu their businessuideausouthatuweucanugetuaugooduoveralluimpres- sionuofuit. mentalupartuofueveryustart-upupitchuisutheuteam.uNouin- vestoru putsu moneyu onu theu tableu simplyu becauseu ofu a brilliantuideauoruinuorderutoujumpuonuaufutureutrend.uIf theustart-uputeamucan’tuplausiblyudemonstrateuthatuit possessesutheucoreucompetenceutousuccessfullyuimple- mentu anu idea,u itu willu notu getu investors’u money. Geniusesu oru idiotu savantsu oftenu unfortunatelyu come awayuempty-handed. Ouruobservationuisuthatutheuqualityuofustart-upupit- chesu isu gettingu betteru andu better.u Thisu isu thanksu tou a ubiquitousuhypeusurroundingustart-ups.uPopularureali- tyutelevisionushowsuthatuportrayustart-upupitchesusuch asuDragons’ Den anduShark Tank areupartuofuthis.uHow- ever,uituisualsoumoreuandumoreufrequentlyutheucaseuthat foundersuattemptutoumakeuaulastinguimpressionuonuus anduovershootutheumark. Atuthisupointuweuwouldulikeutouthankutheseufounders. Forutheirucreativityuandutheiruvoluntaryuoruinvoluntary knackuofumakinguusulaughuorucringe.uWeuwouldulikeuto thanku themu foru puttingu au faceu tou platitudesu suchu as “stayu humble,u stayu foolish“u oru “thinku big“u andu for sometimesutakinguthemutounewuextremes. Twoufoundersuwhoupitchedutheiruideautouusuforuauba- bysitteru referralu serviceu saidu theyu owedu theiru good teamudynamicsutoutheunightsuspentupartyingutogether atu theu infamousu nightclubu Berghain.u Ofu course,u we haveunothinguagainstuBerghainuanducertainlyutheuBerlin nightlifeudoesubringupeopleutogetheru–ubututheucombi- Pitch as pitch can A winning presentation of a business idea can make the difference in attracting investors and supporters. Two insiders report Okay folks, listen up! Nothing gets adrenaline shooting through the veins faster in a start-up than a pitch does. Not necessarily the ideal activity at relaxed festivities or to make employees more cheerful. Unless, of course, the pitch is a winner Evenu ouru privateu livesu areu fallingu victimu tou the pitch’surelentlessuadvance.uTheuAmericanustudentuLiz- zyuFentonurecentlyuaskeduherucrushuonuaudateubyugiving a PowerPointu presentation.u Heru presentation deliveredufactsusuchuasubustucircumferenceuandufinan- cialusituationuwithutheuhopeuofuconvincinguheruloveuin- terest.u Givenu theu omnipresenceu ofu theu pitchu inu all walksuofulife,uituisunouwonderuthatutheustart-upupitchuis nowuaufirmlyuestablishedupartuofueveryufounder’subasic existence.uAsuaustart-upuaccelerator,uweusupportuyoung digitalucompanies.uWeuprovideustart-uputeamsuwithuini- tialu financing,u officeu spaceu andu workshops.u Weu offer A detailedu businessu planu isu ratheru untypicalu inu the start-upuphaseuanduisuusuallyunoturequired.uInuessence, a pitchudeckushouldualwaysudescribeuauproblemuanduthe start-up’suproposeduapproachutousolvinguthisuproblem. Inu orderu tou assessu whetheru anu investmentu isu worth- while,utheuinvestorualsouneedsutouknowutheumarketusize, theuwillingnessuofupotentialucustomersutoupayuauparti- cularuprice,uprofitumarginuandudevelopmentucosts.u Allu theseu shouldu beu presentedu inu theu pitch.u The foundersu shouldu alsou beu ableu tou provideu information aboutuexistinguorupotentialucompetitorsuasuwelluasuthe legalu frameworku conditionsu ofu theu project.u Au funda- nationuofutechnouandubabyuphonesuisureallyunotuaugood startingupointuforuobtaininguinvestmentucapital.uButuwe haveunothinguagainstuaulittleuhumouruinupitches.uAsked howuheusettleduonuthisustart-upuidea,utheufounderusaid: “Afteru Googleu foundersu Larryu Pageu andu Sergeyu Brin stoleumyuideauofuanuInternetusearchuengine,uthisuwasumy second-bestuidea.”uThisuwasunotutheuonlyuansweruthat convinceduus.uInutheuenduweudiduinvest. In their daily work at the “Axel Springer Plug and Play Accelerator”, the authors explore the everyday trials and tribulations of pitching S E G A M Y T T E G I
It takes courage to follow any path for the first time. The new Panamera Sport Turismo. Vehicle categories? Conventions? The new Panamera Sport Turismo leaves them behind. Powerful engines deliver up to 404 kW (550 hp) and the design sets standards of its own. The journey starts here: www.porsche.com/PanameraSportTurismo Fuel consumption (in l/100 km) combined 2.5; CO2 emissions combined 56 g/km; electricity consumption (combined in kWh/100 km) 15.9