Munich-based Furo, a startup developing software for industrial battery storage systems, has secured $4 million in funding, primarily from U.S. venture capitalists. This investment comes despite the company’s three 28-year-old founders choosing to leave Silicon Valley and return to their home country of Germany, a move they state has accelerated both business growth and investor interest.
The funding round was led by U.S.-based TQ Ventures, with participation from Neo and Sheryl Sandbergs fund, Sandberg Bernthal Venture Partners. Munichs Center for Digital Technology and Management (CDTM), where founders Lena Sophia Vo, Leonie Wagner, and Simon Wittner connected, also joined the round. Furo is structured as a Delaware C Corp., maintaining a formal tie to the U.S. venture ecosystem.
Why Furo Left Silicon Valley for Germany
According to co-founder Lena Sophia Vo, the decision to base Furo in Germany stemmed from the belief that the problem of industrial electricity cost reduction was more pressing in Europe, particularly in Germany following recent energy crises. While they could have addressed this market from the U.S., Vo explained that early-stage company success is often tied to proximity to networks and customers. After studying at Stanford and UC Berkeley and working at companies like Apple and Google X, the founders made a deliberate choice to return to Europe, even with full-time offers and visas available in the U.S.
Vo highlighted several benefits of operating from Munich. Being close to their local network reportedly led to recommendations for their first customers, including German rail company Deutsche Bahn. Access to operational expertise, mentorship, and proximity to technical universities for hiring were also cited as key advantages. The startup has seen rapid growth, securing enterprise clients within a year of its founding.
Talent & Cost Advantages in Europe
A notable factor in Furo’s European strategy is the cost of talent. Vo stated that the salary of an engineer in Germany is way cheaper compared to the U.S. She recalled U.S. investors questioning Furo’s budgeted talent costs, which were at the high end for German salaries, allowing the company to do more with the money. Beyond cost, Vo emphasized that the quality of talent in Germany is comparable, and workers are more accessible due to less competition from Big Tech and strong ties to networks like CDTM.
Despite their European base, Furo actively maintains its U.S. connections, with founders visiting the U.S. three or four times annually for administrative matters and to engage with current and potential investors. This approach aligns with an observation from VC firm a16z, which noted the advantage of having one foot in your home country, and one foot in Silicon Valley.
Leave a Reply