What's in it for and against investing in startups
Startup Investments Come with High Risk. "I Was Terrified at First," Admits Diana zur Loewen. Why She Still Chose the Path of an Investor, the 29-Year-Old Explains in the ntv Podcast "Startup - Now, Let's Be Honest."
Many know her as an influencer, but Diana zur Loewen has been investing in startups for several years. She started six years ago with her first investment, back then with little knowledge of the startup scene. That has changed, and she has since professionalized her investments: in 2020, she founded her own holding company, which has several startups in its portfolio.
One of them is the fashion company Saint Sass, which features glittering bodysuits, statement tights, and underwear. During a visit, Diana zur Loewen examines everything and gives her feedback: "I think it's crucial to always meet the founders in person. It's almost like a marriage. You work together for a long time, through good and bad times, and it's important to give feedback. I also do a lot of social media, so I can help there. I invested in Saint Sass because I was a customer before and I really love the products. It's very exciting to be directly involved in the development."
The founders are also happy with their investor, who they chose for a reason. "Diana came in with a five-figure investment and brought the perfect package," says Larissa Schmid. "On the one hand, she has this expertise in social media, and on the other hand, her network. Both bring us a lot and it's a perfect match."
High Risk
However, startup investments come with high risk, which is why the 29-year-old advises her followers not to follow her example. "I knew I would find it beautiful to support young people with my financial means and to change things," says the investor. "But I was terrified at first. You can't just say, 'I'm taking my money out' like at the stock exchange. You have to wait for certain scenarios."
Saidi Sulilatu agrees: "In most cases, it's not a good idea for private individuals to invest in startups because the risk is very high for the promised return," warns the editor-in-chief of Finanztip. "It can go as far as total loss. Therefore, as a private individual, I should only invest in startups with money that I can completely do without."
In the ntv podcast "Startup - Now, Let's Be Honest," Diana zur Loewen reveals why she chose the path of an investor. She explains why she prefers to invest in founders rather than in fashion or expensive vacations, how she deals with criticism about her person, what she pays attention to in her investments, and what are absolute no-gos in the investment process for her.
Despite the high risk associated with startup investments, Diana zur Loewen continues to invest in them due to her passion for supporting young entrepreneurs. Her first investment six years ago was with limited knowledge of the scene, but she has since professionalized her approach and founded her own holding company in 2020.
Recognizing the significant risk, Diana urges her followers not to emulate her investment behavior. She shares that her motivation stemmed from a desire to use her financial means to impact change, but the process involves waiting for specific scenarios and is not as liquid as investing in stocks.
