IPO Instead of Series A: Why Circus Went Public via Direct Listing - Nikolas Bullwinkel, Circus Group

About this episode

The Circus Group has taken an unusual path: Instead of a traditional Series A, the two-year-old startup went public via direct listing on Frankfurt's Xetra on January 22nd. In conversation with Unicorn Bakery, founder Nikolas Bullwinkel, who previously gained experience with Pickery, explains the background behind this surprising decision.

40 Million Euros Without Series A

Over the past 24 months, around 40 million euros flowed into the company – capital that according to Bullwinkel will last until 2025. Circus currently employs about 100 people and has already completed the acquisition of Aitme. According to the company, it is in the pre-growth phase and preparing for intensive growth.

Technology for More Efficient Kitchens

The core business of Circus Group lies in developing technological solutions and operational systems to make kitchens more efficient. "The traditional setup is neither particularly well digitized nor optimized," Bullwinkel explains the starting point. What's interesting: The developed hardware and software products are not sold. Instead, Circus uses them internally to improve their own operational processes and develop additional culinary concepts.

These concepts can then be ordered by end consumers via app or delivery service. Circus operates its own microkitchens for this purpose, whose exact number is discussed in the conversation.

Why Direct Listing Instead of Series A?

The decision for a direct listing at such an early company stage is unusual. Bullwinkel explains the reasons for this step and whether a direct listing can replace a traditional financing round. This also raises the question of what risks arise when team members have real company shares and could theoretically withdraw from the company at any time.

Employee Equity as Strategic Element

An important aspect of the Circus model is employee equity participation. The company relies heavily on real company shares for the team, which brings both opportunities and challenges. Bullwinkel explains what role these participations play in the company strategy.

Measuring Technological Product-Market-Fit

How does a technology-driven food startup measure its product-market-fit? Circus uses specific KPIs to evaluate the success of their technological solutions. The crucial question is: Why do consumers buy from Circus? The answer lies in the combination of efficient processes and high-quality culinary concepts.

Scaling Despite Brand Diversity

A particular challenge for Circus is that a new brand must be established for each culinary concept. Bullwinkel discusses whether the company still has a real competitive advantage and how the scaling and organization of individual concepts works within the overall organization.

B2B Potential of the Technology

An obvious question is whether it makes sense to spin off the developed software as a B2B or B2B2C concept. After all, other providers could benefit from the efficient kitchen technology. Bullwinkel explains the strategic considerations behind the current focus on their own operational business.

Circus Group's IPO demonstrates an alternative path to traditional startup financing. Whether the direct listing proves to be a successful strategy will become apparent in the coming years – especially when the company initiates its announced growth phase.