We recently sat down with DealMatrix, with whom VC innovations has an exclusive UK partnership for all UK fintech events, to discuss the thinking behind their unique platform and their views on the Austrian fintech ecosystem.
1. Tell us a bit about DealMatrix and how it supports the fintech sector
DealMatrix is the global platform for start-up applications aimed at investors, corporates, events, accelerators, grant programs and many more. Our application process enables start-ups to create a profile with key company details that can be used to populate new and subsequent applications, saving start-ups a lot of time. As a founder it’s crucial to stay on top of available opportunities but also to know which ones are a good fit. Once your company profile has been created, DealMatrix can match you with our clients based on their own profile and interests. We will actively send you new opportunities when we identify a good fit. Most importantly, our services for startups are completely free.
2. What are the main challenges fintech’s face in the process of accessing capital? What advice would you give them?
Taking into consideration that every company is unique, they face similar challenges in managing their growth. There is, however, one big difference: regulation. There are few other industries with so many rules and restrictions. With this mind fintech’s must consider the longer implementation times and potentially get the requisite government approvals so as not to face serious consequences later on.
3. In terms of the Austrian tech sector, what do you see as some of the key challenges ahead and potential barriers to growth/success? What are the opportunities?
The Austrian market has caught up in the pre-seed and seed financing market, there are private investors and we also benefit from a lot of opportunities for government grants. But there is still a long way to go for follow-up rounds. Series A rounds or later are nearly impossible in Austria. The simple reason is that the funds are not there. So, we think cross border and take the opportunities there. Especially if start-ups are willing to relocate. For Austria itself this is bad but fully understandable from a founder’s position. On a positive note, a lot of the founders that chose this way are now angels and re-investing into the Austrian market and closing the cycle.
4. Do you feel that the government and industry are taking the right steps in ensuring a suitably skilled workforce? What do you hear from companies in the sector in terms of their challenges in accessing the right tech talent?
The Austrian government has become more active in the last 2 years. There are couple of reasons: 1) start-ups have become a hot topic, sexy and something to strive for, 2) therefore they are now on the radar of politicians and corporates and 3) of course the hope is that many new start-ups create more new job opportunities (than they potentially destroy).
Recent initiatives were started to educate science and IT skills much earlier in children’s education and programming skills should be treated comparable to a real language. Labour costs are relatively high in Austria and are also secured by a minimum income. Thus start-ups typically have a mix of inhouse people for key- and relevant positions and outsource other development activities to central and eastern Europe where the hourly rate is still much cheaper. Still to find people for reasonable money is difficult as corporates are buying from the market in many cases for more money.
To find out more about DealMatrix’s application platform for start-ups, please email firstname.lastname@example.org