Funding Rounds in Crisis & Counter-Cyclical Decisions: Michael Brehm, i2x

About this episode

Michael Brehm is among the most experienced entrepreneurs in the German startup scene. Around 15 years ago, he co-built StudiVZ and sold the social network for an estimated 100 million euros. Later, he served as a founding partner at Redstone Capital before dedicating himself to his latest project: i2x, an AI-based speech and coaching program that revolutionizes sales and customer service conversations.

Counter-Cyclical Approach in Uncertain Times

Michael's years of experience pay off particularly during difficult market phases. While other founders feel uncertainty, he maintains composure and makes thoughtful decisions. His approach is deliberately counter-cyclical: during the market's peak phase, he didn't raise money. Only when uncertainties emerged did he start his new funding round.

This strategy demonstrates the importance of timing and experience in the startup ecosystem. Those who understand cycles and act accordingly can successfully raise capital even during difficult times.

AI Product Development: Balancing Maturity and Sales

At i2x, Michael faces the typical challenge of AI-driven startups: How do you develop an MVP with artificial intelligence without waiting too long before winning first customers? The balance between product maturity and sales launch is particularly critical for AI products, as the technology is complex while rapid market validation is necessary.

Michael's approach: The team at i2x deliberately chose in-house development instead of relying on external AI services. While this decision brings higher initial investments, it enables complete control over the product and technology.

Funding with Experience: Macro and Micro Perspectives

From his time at Redstone Capital, Michael brings a dual perspective: that of an investor and that of a founder. This combination helps him understand both macro trends in the market and optimize the micro details of his own funding round.

Experienced founders like Michael actually have advantages in raising capital during crisis periods:

• –Investors trust proven track records
• –The ability to stay calm and make rational decisions
• –A deeper understanding of market cycles and timing
• –Established networks with investors and other entrepreneurs

Germany as a Startup Location: Opportunities and Challenges

Michael views Germany as a startup location with nuance. Technologically, there's a risk of being left behind - especially in AI, where the US and China dominate. At the same time, Germany offers advantages in terms of quality of life and as a bridge between different markets.

The question isn't just whether Germany can keep up technologically, but also which niches and strengths the location can leverage. For companies like i2x that develop B2B software for international markets, Germany certainly offers good conditions.

Lessons from Setbacks

Even an experienced entrepreneur like Michael has faced setbacks. Dealing with bad press, failed projects, and difficult decisions is part of entrepreneurship. The key is learning from these experiences and using them for future projects.

Conclusion: Experience as Competitive Advantage

Michael's story shows how valuable experience is in the startup space. From StudiVZ through Redstone Capital to i2x, he has taken on various roles while developing a deep understanding of the startup ecosystem. His counter-cyclical approach and ability to act strategically even in uncertain times make him an interesting conversation partner for anyone interested in entrepreneurship and funding strategies.