Startups at the University of Mannheim

There is no clear-cut answer to this question. Whether it’s during your studies, right after graduation, or only after a few years of professional experience—the best time to launch a startup depends on your individual circumstances and a number of other factors.

Potential benefits:

• Access to university resources such as mentors,
• access to the university’s startup network,
• Support with applying for grants,
• Practical experience while still in school,
• early contact with customers, and
• an early start to your career.

Possible drawbacks:

• scheduling conflicts with exams or classes,
• a longer duration of studies,
• additional bureaucratic burdens (taxes, health insurance, visas for international students), as well as
• potential impacts on the financing of your studies, such as with BAföG or a scholarship.

No, a business degree isn't required to start a business.

What matters most are a willingness to learn, creativity, and perseverance. And, of course, a good idea.

In a business administration program, students learn the fundamentals of economics, such as marketing, finance, accounting, and management. At the University of Mannheim, there are also courses focused on entrepreneurship and startups that explicitly prepare students for starting a business. However, you can also take most of these courses even if you’re studying other subjects.

In addition, there are other resources such as consulting, mentoring, and coaching services, events, and networking opportunities.

Resources for Founders

There are several ways to finance a startup:

Funding Programs and Scholarships There are various funding and scholarship programs. These include, for example, EXIST, EXIST Women, or regional programs such as InvestBW (only available in German). There are also so-called accelerator programs such as InnoWerft or Campus Founders. These programs are characterized by short but intensive support during the startup phase.

Loans
KfW and the state banks offer specialized loans, including the Start-up BW Pre-Seed Program. Bank loans are also an option for startup financing. Loans have the advantage that founders do not have to give up any equity in the company, but they do create pressure to repay the debt.

Investors
Founders can also try to find investors for their startup. There are various options here as well. For example:

• Business angels (experienced and wealthy individuals, website only available in German),
• investors who invest so-called venture capital and receive company shares in return,
• large companies that invest in small startups (corporate venture capital), or
• family offices (private companies that manage assets).

Alternative Forms of Financing

• Crowdfunding,
• revenue-based financing (repayment based on revenue),
• Leasing (e.g., of expensive machinery) or
• Factoring (a financial service provider immediately pays the invoices that the startup issues to customers and, in return, retains a portion of the invoice amount).

Bootstrapping
“Bootstrapping” refers to financing a venture using one's own resources, income, and savings (the term is derived from the story of Baron Münchhausen, in which the baron pulled himself out of a swamp by his own hair).

All financing options have their pros and cons.
Which option is right for you depends on various factors. Get advice from the MCEI team and exchange ideas with like-minded people in the network.

A startup goes through six phases. They generally proceed as follows:

1. Ideation Phase
   In theideation phase, founders identify a relevant problem or market need. They develop a solution concept and broadly define the market, target audience, and competition.
2. Concept and Validation Phase
   In theconcept and validation phase, also known as “pre-seed,” founders create their business model. They develop a prototype, gather feedback from users and potential customers, and assemble a founding team.
3. Build-out and Market Entry Phase
   In thebuild-out and market entry phase, also known as “Seed,” founders refine their product idea with an eye toward the needs of potential customers. They develop a strategy to launch a product and acquire their first customers. Founders strategically build their team and establish initial processes, such as marketing and sales.
4. Growth phase
   In the growth phase, also known as “Series A/B,” founders scale up their sales, marketing, and product development. They enter new markets or market segments with their products. The founding team establishes professional structures such as Human Resources. The focus is strongly on growth, market share, and efficiency.
5. Maturity Phase
   In the maturityphase, also known as expansion, founders focus on internationalization, diversifying the product portfolio, and optimizing profitability. Some also prepare exit strategies, such as a sale or an initial public offering (IPO).
6. Exit or Consolidation Phase
   In the exit orconsolidation phase, founders sell their startup, integrate into a larger company, or go public. Some startups also establish a lasting presence in the market and acquire competitors.