Image: Instagram / @akyshnik
Made in Germany, launched in California
What didn't work in Germany has taken off in Silicon Valley: The German-founded AI start-up Leaping AI raised a whopping 4.7 million dollars (around four million euros) in just seven days - at a time when German tech founders often despair in this country.
Kevin Wu and Arkadiy Telegin, founders of Leaping AI, had originally tried to get their financing off the ground in Germany - without success. "It is so difficult to start a company in Germany. There is no venture capital for early-stage tech founders with unproven business models," says Wu. So they went to a place where venture capital is not a rarity, but an everyday occurrence: Silicon Valley.
AI meets call center - and it works
Leaping AI develops voice AI agents that take over customer service tasks. Anyone who has ever been stuck on hold for hours can easily imagine why the potential is huge. For one travel company, the AI was already able to handle 50 percent of calls without human assistance - and achieved over 90 percent customer satisfaction.
The team works for companies from a wide range of sectors: Tourism, insurance, real estate - wherever there are many similar inquiries, the AI saves valuable time and money. Leaping AI currently processes around 10,000 calls per day.
Money shower in chord: 14 meetings per day, 5 days long
After being accepted into the renowned start-up accelerator Y Combinator, everything happened very quickly. In just one week and with the help of Paul Graham (co-founder of Y Combinator) and other top investors, Wu and Telegin raised more than four million euros - and even ended the search for investors early because they had more offers than they needed.
"Pretty much everyone here said 'yes'," reports Wu. And that after not even a "maybe" was heard in Germany. So it's no wonder that the founder is enthusiastic about his new home - both in terms of business and strategy: "You're seen as a company with German roots. One that speaks the German language. But you are a company from Silicon Valley."
What does Recht 24/7 say about this?
Once again, it is brutally clear that doubt often reigns in Germany, while opportunity reigns in Silicon Valley. While business plans are still being picked apart page by page here in Germany, US investors are handing out millions after five meetings. No wonder talents like Wu and Telegin prefer to seek their fortune on the other side of the Atlantic.
Germany is a country of innovation - but only when it comes to research. As soon as it comes to making things, the "but" too often gets in the way. We lose founders and ideas to countries that simply make decisions faster and take more risks. The success of Leaping AI is impressive - but also a resounding slap in the face for Germany as a start-up location.
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