Tell us about your start-up experience.
I hold a Master in Theoretical Physics and a Ph.D. in Physical Chemistry from the University of Berne. In my career, I got in contact with different interesting technologies one of which lead to the foundation of my own start-up Optical Additives. We’ve developed an additive material capable to collect light from the surface of a device body guiding it to small embedded solar cells transforming it into electrical power. While material production works with small quantities, we still are working on a method to produce the material in large quantities.

You’re not only an entrepreneur, but you’re also a manager.
Yes, I did an Executive MBA at IMD and gained experience in leadership positions in industries like food, beverage packaging, machinery and plant engineering, plastics and chemistry, ophthalmology (optics) as well as information technology.

Since last year, you’re also a member of the Investment Committee of the proptech investment firm Constructive Venture Fund. How come?
Constructive Venture Fund has three founding members, and Hypothekarbank Lenzburg (HBL) is one of them. CEO Marianne Wildi asked me to take over this role due to my experience and background. In this role, my experiences in different industries is a benefit. Therefore not having a long track record in the banking industry is not a disadvantage. As we’re looking at many different types of start-ups knowledge in technology, markets and international business development is of great importance to be brought into validation and prospect discussions when looking at start-ups.

What does that have to do with the business of a regional bank?
HBL wants to be at the forefront of innovation. The banking industry is in a major phase of transformation. You need to be open to innovation if you want to become ready for a new era and find a position in the future landscape of banking and financing. Currently one of the core activities of the HBL is mortgage financing. The main investment topics for Constructive Venture Fund are related to housing, construction, financing and new technologies in these sectors. This ensures Constructive Venture Fund’s alignment to the interests of HBL and the Gebäudeversicherung Bern (GVB) and the Avobis Group, the other founding partners of Constructive Venture Fund.

Why not just do this alone?
Of course you could do corporate venturing alone as well. But with the model of Constructive Venture Fund, which is open for other parties to join, there is an important element of risk-sharing. We certainly couldn’t look at that many start-ups if we did it alone. And professional networks reinforce each other, especially if you combine people from different companies with different backgrounds but who still share a common interest in proptech, construction and fintech.

But are the discussions in an investment committee not more difficult if you have to work with people from other companies?
Our discussions are open and direct, and there is a healthy culture of challenge. The founding companies have different backgrounds, the people in the IC have different backgrounds, and this also means that they weigh arguments differently. But when you assess start-ups, it’s a very good setup when you cover a wide range of aspects.

There must be an awful lot of coordination work involved.
The main tool we work with is the Dealboard software of Verve Ventures. It keeps track of each deal under investigation. There is a repository for all documents concerning the start-ups. This is much more efficient than writing emails back and forth. When I look at it now, I see 75 deals on the radar, 3 on the longlist, and 13 are archived because we didn’t pursue them further. The cases are quite diverse, there are tech start-ups, software start-ups, big data start-ups – it’s a very interesting portfolio.

Can you share an example of a start-up you’re looking at right now?
Let’s take the solar company Insolight. In the beginning, I was skeptical towards their business model. But I realized later that they have solved a major issue in a very clever way. In the past years, the solar industry did all it could to make solar energy more competitive to other energy sources. Cost efficiency was achieved successfully. But only small incremental gains have been made with respect to energy conversion efficiency of sunlight. Here Insolight comes in. Its solar panels are based on well-known and established technologies, but with a completely new patented approach. This results in much higher conversion efficiency without making installation more complex compared to conventional solar panels. And all this with an attractive pricing model. The management team seems very knowledgeable to me, both in technical and business aspects. They have answered all our questions rapidly and convincingly.

Sounds like a free lunch.
No, it’s not. Market entry and industrialization of the panel production are still demanding challenges. But with most start-ups, you have to cope with these kinds of risks. As an investor, you always have to compare risk and potential return and then decide whether you proceed or not. As for Insolight: we’ve agreed to invest, on the condition that the ongoing legal due diligence will show a positive result.