Verena Pausder Advocates for More Capital to Compete Globally

Verena Pausder, a prominent figure in Germany’s tech landscape, stresses the urgent need for increased investment in startups to prevent the country from being surpassed by larger technology markets such as the United States and China. Recently returned to Berlin after an extensive promotional tour for her podcast, “Fast and the Curious,” Pausder shared insights into her entrepreneurial journey and the pressing challenges facing the German startup ecosystem.

During a lively lunch at Lucy’s Deli, a popular spot among investors and entrepreneurs, Pausder reflected on her week of touring, where she performed to audiences of up to a thousand people. “I absolutely loved it. It gave me the chance to be the actress I always wanted to be,” she said. The experience provided her with a surge of energy and validation for her comedic approach to business discussions.

Pausder’s entrepreneurial spirit is deeply rooted, stemming from her family’s long-standing involvement in business. Her ancestors founded the Delius Textiles company in Bielefeld in 1722. Her father transformed it into a high-tech enterprise in the 1990s, while her mother ran a successful interior design firm. This background instilled in Pausder a desire to carve her own path rather than follow in her parents’ footsteps.

She launched her first venture at the age of 25, attempting to establish a salad bar franchise, which ultimately failed. Her breakthrough came in 2012 with the founding of Fox & Sheep, a studio focused on creating educational apps for children. The company quickly gained recognition, becoming one of Europe’s leading developers in its field and was acquired by toy manufacturer HABA in 2015. “I always felt education was a field where you can change so much,” Pausder explained about her commitment to enhancing educational opportunities through innovative technology.

As an angel investor, Pausder has backed over 30 startups, with a focus on educational technology. She expressed optimism about the role of artificial intelligence in education, citing her investment in Knowunity, an AI-driven platform that recently raised €27 million in Series B funding. “With AI, a student can receive personalized help on their smartphone for exactly the problem they didn’t understand,” she noted.

In her capacity as head of the German Startup Association, Pausder has been instrumental in advocating for regulatory reforms that support the startup ecosystem, including modernizing employee stock ownership plans and facilitating childcare cost deductions for working mothers. However, she criticized the slow pace of political action, particularly following the coalition formed in April 2023 between the Christian Democratic Union and the Social Democrats. “It’s written on paper, but I haven’t seen it really be put into action,” she stated, underscoring the disconnect between policy promises and tangible results.

Pausder called for a more aggressive approach to supporting startups, insisting that without sufficient capital, German companies will struggle to compete on a global scale. “We have to put more capital into startups, because otherwise they won’t be large enough to compete,” she asserted. She also expressed a need for politicians to celebrate entrepreneurial successes rather than viewing them with suspicion.

In addition to her business ventures, Pausder has taken on a significant role in sports. In 2022, she and five other women acquired FC Viktoria Berlin’s women’s team with ambitions of reaching the Bundesliga within five years. Inspired by the success of Angel City FC in Los Angeles, Pausder is committed to promoting women’s football in Germany, despite the regulatory challenges that complicate funding and ownership structures.

Pausder remains determined to continue her multifaceted career, stating, “I want to keep going like this until I’m 80.” Her relentless pursuit of innovation and change reflects her belief that life’s achievements are merely the beginning of new challenges and opportunities. As she navigates her journey, Pausder embodies the spirit of entrepreneurship, advocating for a future where Germany can thrive alongside its global competitors.