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

The man responsible for M&A and venture capital at the billion-dollar group reveals his secrets and no-goes.

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. In addition, investments in venture capital funds (e.g. High-Tech Gründerfonds or Project A) give us insights into deal flow, trends and access to start-ups and founders.

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

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

What are the three most important factors for a Körber investment?

We pursue the classic triad of "Team, Total Addressable Market and Technology / USP" as a basic requirement. Our screening question specifically for Körber is: "What else does Körber bring to the start-up besides money - and vice versa?" From the answer, you can quickly see if you can create real value for all parties involved.

What are three no-go's 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 technology of the start-up is outstanding. If it is not - and this often only becomes apparent after a thorough examination - we do not proceed. And of course the conditions have to be right.

What distinguishes the investment of a medium-sized company like Körber from a classic VC?

As an operating technology group, we at Körber understand customer needs very well because we are predominantly active in the same customer industries as the start-ups that interest us. However, we are not in competition with the start-ups, but are active in adjacent fields. This brings "use cases" to a start-up and, if successful, customer access and revenue.

In addition, we understand "industrializing". For example, our technology management team helps startups bring manufacturing costs to target cost levels with "design to cost". In another case, our sourcing experts helped a startup set up structures and processes in a professional manner. Similarly, start-ups can gain access to our technology clusters and network directly with our experts. In this way, start-ups become part of the Körber ecosystem and participate in the "best practice exchange" - and vice versa. All of this is voluntary, of course. But our experience shows that the start-ups are very happy to accept this.

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

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

In addition to working quite closely together, 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.