Organizing Your Financials 

From the outset, Christian emphasizes the importance of having someone responsible for maintaining the company’s financial records to prepare for scaling. When you start, you will have everything in spreadsheets, but as the startup grows, it becomes essential to adopt financial tools that align with the business model. There is no one-size-fits-all tool that seems to work best for all business types; it largely depends on the complexity of your financial case. 

Arnd adds that for any founder, a solid business model and unit economics must be the primary focus from the outset. While it is sensible to keep financial systems and processes simple in these early stages, standardizing and professionalizing internal processes should quickly become a priority as the company scales. Christian further highlights that long-term success depends on having core financial and operational fundamentals (cash flow, runway, KPIs, etc.) readily accessible. Whether for investors or otherwise, a professional company needs to be able to provide this data accurately. Paul adds that as companies scale, whether or not they have their financials in order can easily be spotted by identifying if a company can provide the data in the first place.

Arnd identifies a good overview of cash runway as the rule #1 for early-stage startups and notes that it must be distinguished from P&L. Further, understanding cash flow, how much money is coming in and going out, where it’s being allocated, and what areas can be optimized is essential for maintaining an up-to-date understanding of your company’s financial health. Arnd notes that when your runway is tight, you may need to monitor cash flow at a very granular level, even daily. 

For later-stage companies, Paul identifies net dollar retention as a key metric. He notes that banking data can often serve as a practical alternative for gathering data quickly, especially in fast-moving situations, as it’s always available. Arnd shares the importance of broadening the set of financial KPIs as you scale to look at a larger set of metrics, which can evolve to include Customer Acquisition Cost, Lifetime Value, scaling and non-scaling costs, EBIT, and net income. Nonetheless, Arnd cautions that data quality should be prioritized first, systems come at a later stage, and outsourcing might be necessary depending on the skillsets of the existing team.

Fundraising Tips from the Source 

Start early, as it sometimes takes time to find the right investor. Christian recommends planning for a nine-month fundraising period unless you are operating in a uniquely hot market where a faster turnaround of two to three months might be possible, but this is by no means the norm. He also explains that in today’s fundraising environment, even if you have not yet reached profitability, you must be able to clearly articulate a plan to get there. The topic of profitability will come up with investors in every funding round and follow-up discussion. 

Regardless of stage and cash runway, Arnd adds that you should always be in fundraising mode. This means maintaining consistent and ongoing dialogue with investors, keeping them informed about what you are building, and continuously incorporating feedback from investors and customers into your strategy.

Paul emphasizes that once you reach Series B, commercial rollout becomes critical. You must demonstrate that your business can be replicated across different markets and point to clear evidence of that scalability.

Follow-on Rounds & Growth 

Christian cautions against taking on debt too early, especially if your business does not yet generate cash and has a reasonably predictable revenue outlook. Especially in today’s uncertain times, he advises founders to be pragmatic: “Take money if it’s there,” because capital may not be available when you actually need it. He recommends focusing on reaching those milestones that are value-creating so you can fundraise based on them. He reminds that debt comes with covenants that can hinder your ability to change or grow, and venture capital comes with dilution, but it also comes with a partner: it’s important to know what makes sense for your business in the long term. 

Paul offers a complementary view and a note of caution. He stresses the importance of choosing the right investors, urging founders to think carefully before accepting funding. Just because someone believes in your idea does not mean they are the right long-term fit.

Christian also highlights broader structural challenges in the European funding landscape, noting that growth capital is particularly scarce due to the absence of deep-pocketed endowments and pension funds, especially in Germany, where the pension system restricts access to capital for the VC asset class. This structural gap continues to constrain the European startup ecosystem.

Build the Foundation Early

Achieving financial excellence isn’t about perfection from day one. It’s about building the right habits, tools, and judgment to support growth, and to do this in a sensible way that supports the needs of a company over time. As Christian, Arnd, and Paul make clear, success in early-stage startups hinges on a firm grasp of the fundamentals: understanding your cash flow, keeping your unit economics tight, and being strategic with both tools and talent.

Startups are inherently resource-constrained, which makes prioritization essential. Focus first on clarity: know your numbers, know your runway, and know your story. In the end, building a company is a long game. “It’s a marathon, not a sprint,” says Arnd. Equip yourself with the right people, maintain financial discipline, and stay adaptable.

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