How 1KOMMA5GRAD Raised 500 Million Euros from Investors - with Founder and CEO Philipp Schröder

About this episode

Philipp Schröder has pulled off one of the most successful funding rounds in the German startup ecosystem with 1KOMMA5GRAD. 500 million euros from investors – a sum that shows someone who truly masters the fundraising game is at work. But how do you do it right?

The Biggest Mistakes in Investor Meetings

Schröder knows the typical pitfalls that CEOs fall into during investor conversations. The most common and dangerous mistake: bending your pitch and vision for the investors. "Don't do what investors want to hear," warns the 1KOMMA5GRAD founder. This approach might seem tempting in the short term, but leads to a dead end in the long run.

Anyone who waters down their convictions for potential funders not only loses authenticity but also the chance to find truly suitable investors. Instead, Schröder relies on honest communication – even if it means some conversations end early.

Why Money Is Now Available Everywhere

A surprising learning from Schröder's experience: "Investor money is now available on every corner." This development fundamentally changes the power dynamics in fundraising. Founders no longer need to convince every investor at any cost – they can and should be selective.

However, this new reality also means founders need to differentiate themselves even more strongly. When capital is abundant, other factors determine the success or failure of a funding round.

Finding Your Lifetime Topic

A key success factor for Schröder is the concept of a "Lifetime Topic" – a subject you're passionate about long-term and that drives you for years. For 1KOMMA5GRAD, that's the energy transition and sustainable technologies.

An authentic lifetime topic provides founders with several advantages:

• –Credibility with investors and customers
• –Perseverance during difficult phases
• –Natural expertise and networks in the field
• –Long-term motivation beyond financial incentives

Selecting the Right Investors

Not every investor fits every startup. Schröder emphasizes the importance of strategically selecting the right partners. It's not just about the investment amount, but about strategic fit, expertise, and long-term vision.

The selection should be based on the following criteria:

• –Understanding of the business model and industry
• –Complementary expertise and networks
• –Similar time horizons and goals
• –Willingness to support even during tough times

Authentic Conviction Beats Perfect KPIs

A particularly interesting point from Schröder's experience: authentic conviction is often more important than perfect KPIs. Of course, the numbers need to be right, but investors ultimately invest in people and their visions.

Anyone who can credibly communicate why they want to solve exactly this problem and why now is the right time has better chances than someone with flawless spreadsheets but no genuine passion.

Clarity in Pitch as Success Factor

Schröder emphasizes the importance of clarity in communication. Complex business models must be explained so that everyone understands them. Anyone who can't explain their own business simply usually hasn't gained enough clarity themselves.

A clear pitch means:

• –Precise problem definition
• –Understandable solution description
• –Realistic market assessment
• –Honest risk evaluation

Strategic Planning of Fundraising Milestones

Schröder strategically plans his fundraising activities and consciously sets milestones. This structured approach helps maintain oversight and present investors with a clear roadmap.

The experiences of 1KOMMA5GRAD show: successful fundraising isn't a matter of luck, but the result of strategic planning, authentic communication, and choosing the right partners. Anyone who follows these principles has good chances of finding suitable investors even in an overcrowded market.