Five questions for Hartmut Ruh: How Körber finds its start-ups

The head of M&A and venture capital at the billion-euro group reveals his secrets and no-gos.

Mr. Ruh, how is Körber currently looking for start-ups?

We come into contact with start-ups in several ways. Numerous opportunities arise through our colleagues who are active in the market on a daily basis. We also gain insights into deal flow, trends and access to start-ups and founders through investments in venture capital funds (e.g. High-Tech Gründerfonds or Project A).

In addition, we have actively built up a strong international network over the last few years. This includes, for example, technology-focused investment boutiques and banks as well as consultants. And, of course, we also conduct intensive research in global databases.

We are particularly pleased that many founders are now contacting us directly because they see Körber as a partner.

What are the three most important factors for an investment by Körber?

We follow the classic triad of "Team, Total Addressable Market and Technology / USP" as a basic requirement. Our screening question specifically for Körber is: "Apart from money, what else does Körber bring to the start-up - and vice versa?" The answer quickly reveals whether real added value can be created for all parties involved.

What are three no-gos for an investment?

No clear added value from the cooperation with Körber for both sides is a clear exclusion criterion for us. Otherwise we would be a pure financial investor. As a technology group, it is crucial for us that the start-up's technology is outstanding. If it is not - and this often only becomes apparent after a thorough examination - we do not continue. And, of course, the conditions have to be right.

What distinguishes an investment by a medium-sized company like Körber from a classic VC?

As an operationally active technology group, we at Körber understand customer needs very well, as we are predominantly active in the same customer industries as the start-ups we are interested in. However, we are not in competition with the start-ups, but are active in adjacent fields. This provides a start-up with "use cases" and, if successful, customer access and sales.

We also understand "industrialization". For example, our technology management team supports start-ups in bringing manufacturing costs down to the target cost level with "design to cost". In another case, our purchasing experts supported a start-up in the professional development of structures and processes. Start-ups can also gain access to our technology clusters and network directly with our experts. In this way, start-ups become part of the Körber ecosystem and take part in the "best practice exchange" - and vice versa. Everything is voluntary, of course. But our experience shows that the start-ups are very happy to take part.

Another advantage is that we have many entrepreneurs on board whose former company is now part of the Körber Group. We discuss and work on an equal footing with the founders. Having founded a company myself, I can confirm that this makes a real difference.

If it works: What does the collaboration between Körber and the start-ups look like?

In addition to the very close cooperation, we are usually active on the advisory board for investments.

Thank you very much for the interview.

About the person: Hartmut Ruh comes from a family of entrepreneurs. At the Körber Group, Ruh is responsible for Group Strategy, M&A and Venture Capital. He previously held management positions at the Bosch Group, most recently as Vice President & Director Corporate Controlling, Planning and M&A at the Global Headquarters.