How Do You Actually Set Up a VC Fund? Insights from Bettine Schmitz of Auxxo

About this episode

Germany's venture capital landscape is fiercely competitive – and as a new fund, you need more than just capital, you need clear positioning. Bettine Schmitz of Auxxo shows how to successfully build a VC fund and why focusing on female founded startups is more than just a marketing gimmick.

The Path to Your Own Fund

What drives experienced investors to start their own fund? For the Auxxo team, it was the conviction that the market has a specific gap – particularly in financing female founded startups. After three years, Bettine Schmitz can draw initial conclusions: Building a new fund is a marathon, not a sprint.

Brand Building in an Oversaturated Market

Establishing a new VC fund means asserting yourself in a market full of established players. Auxxo has focused on clear thematic positioning. "You have to stand behind your theme," explains Schmitz. This authenticity is crucial – both for approaching limited partners and for earning founders' trust.

The challenge: As a new fund, you initially have no track record and must first build trust with both investors and startups. This is where clear specialization pays off, going beyond superficial differentiation.

Female Founded Startups: Conviction Over Trend

Why does Auxxo focus exclusively on female founded startups? The answer lies not only in the statistical underrepresentation of female founders, but in the conviction that there's enormous untapped potential here. The numbers speak for themselves: Only a fraction of venture capital flows to female-led startups.

This isn't just about equality, but about economic opportunities. Studies consistently show that diverse teams make better decisions and build more sustainable companies.

Deal Selection in Difficult Times

How does Auxxo select its investments? Particularly in the current market situation, composure is an important factor. Instead of panicking, the team uses the time for even more thorough due diligence. "No facets, no choice" – this principle helps make the right decisions even in uncertain times.

Current market conditions bring both challenges and opportunities. While valuations have dropped, competition for the best deals has also intensified.

Learnings After Three Years

What are the key insights after three years of Auxxo? The interplay between female investors and female founders often works differently than expected. The challenge lies not only in encouraging more women to start companies, but also in supporting them as they scale their businesses.

An interesting aspect: More women in STEM fields doesn't automatically lead to more female leadership in startups. The barriers are more complex and often begin with fundamental risk tolerance and access to networks.

Practical Tips for Founders

What advice does Bettine Schmitz give to aspiring founders? Mistakes are part of the process – what's important is learning quickly from them and not letting them paralyze you. Building a startup is an iterative process where failure is part of the learning journey.

For female founders specifically: Networks are crucial. Many successful female founders repeatedly emphasize how important mentors and a strong professional environment are.

Conclusion: More Than Just an Investment

Auxxo demonstrates that specialized VC funds definitely have their place – provided the specialization is authentic and brings real value. The focus on female founded startups is more than just a niche: It's a conscious decision to unlock untapped potential and make the startup market more diverse.

For other founders considering their own fund, the most important lesson is: Clear positioning and readiness for a long build-up are essential. The market doesn't need another generalist VC – but specialized funds with genuine expertise definitely have their chance.