Interview:

1. You recently joined the board of invest.austria. What motivated you to take on this role, and what do you hope to contribute to the ecosystem through this position?

   
   

I’ve been actively engaged in the Austrian start-up and scale-up scene for years, so joining the board of invest.austria felt like a natural next step. It’s a platform with real influence and momentum. Together with the board and all members, I want to help position Austria as a place where innovation doesn’t just start, but thrives and scales. Strengthening the connection between private and institutional capital will be key to achieving that.

2. The EY Start-up Barometer H1 2025 shows a 64% year-on-year drop in funding volume. What do you see as the key drivers behind this sharp decline, and how should the ecosystem respond?

   
   

The sharp decline in funding is the result of a combination of factors, but one of the most significant is Austria’s overall economic weakness. While many other European countries are already showing signs of recovery following the global downturn in start-up funding in 2023, Austria continues to struggle. According to the latest IMF spring forecast, Austria is the only EU member state projected to experience negative GDP growth in 2025, entering its third consecutive year of recession. This has had a direct impact on the investment climate: international investors are increasingly avoiding markets without a clear growth narrative, and Austria is at risk of falling behind.

In this environment, global funds are pulling back from riskier geographies and concentrating their capital in more stable ecosystems. At the same time, investor sentiment is weighed down by geopolitical tensions, ongoing trade disputes, and a general slowdown in consumer and business confidence. These factors are fueling a growing aversion to risk and contributing to a capital shortfall that affects start-ups at every stage, from early ideation to international expansion.

To counter this trend, Austria urgently needs a coordinated and forward-looking policy response. This includes targeted investment incentives that make it more attractive to commit capital to young companies. In particular, the implementation of a sovereign fund – the so-called Dachfonds, as outlined in the current government program – is a critical step. Such a vehicle could not only unlock additional public-private capital, but also send a strong signal of confidence in Austria’s innovation ecosystem. In addition, measures such as a participation allowance for private investors, modern frameworks for employee equity programs, and the ability to carry forward and offset tax losses are necessary to create a competitive and founder-friendly environment.

3. The report indicates a notable drop in early-stage deals, especially those below one million euros. What do you think are the main reasons behind this hesitation in early-stage investments?

   
   

The decline in early-stage investments reflects a broader shift in investor behavior. In times of economic uncertainty and increased market volatility, many investors are pulling back from new, high-risk commitments and instead focusing their capital on stabilizing existing portfolio companies. This capital reallocation is particularly evident in the early-stage segment, where perceived risk is highest and returns are longer-term.

In addition, the overall risk appetite in the market has declined. Smaller tickets – especially those under one million euros – often require a leap of faith based on the strength of the team and the vision, rather than on solid traction or revenue. In the current climate, that leap is becoming harder to justify for many investors. Public funding programs and co-investment mechanisms that traditionally supported these rounds have also come under pressure or are not scaling quickly enough to fill the gap.

As a result, even promising early-stage start-ups are struggling to raise the capital they need to validate their ideas, build their teams, and enter the market. This hesitation in early-stage investing creates a long-term risk for the ecosystem: without a strong and well-funded pipeline of new ventures today, there will be fewer scale-ups and success stories tomorrow.

To reverse this trend, we need stronger public-private collaboration, faster implementation of support measures like the national fund (Dachfonds), and more visible recognition of the value that founders bring to the economy. If we act now, we can turn this moment of hesitation into an opportunity – and rebuild a more resilient and forward-looking innovation ecosystem.

4. When comparing the EY Barometer to the Austrian Investing Report 2024, what are the key similarities and differences these reports offer?

   
   

Both reports highlight the same core message: Austria’s investment environment remains under strain, and the availability of capital across all start-up stages is limited. However, they approach the issue from different but complementary angles.

The EY Start-up Barometer focuses on quantitative deal data – capturing actual funding volumes, stage distributions, and sector trends within Austria’s start-up ecosystem. It provides a snapshot of how much capital is flowing, at what stages, and under what market conditions. In the first half of 2025, it documents a dramatic decline in investment activity, particularly in early-stage deals and larger growth rounds, underscoring the immediate financing challenges faced by founders.

In contrast, the Austrian Investing Report 2024 zooms in on the perspective of capital providers themselves. Based on a detailed survey of 165 private and institutional investors – including business angels, VC and PE funds, family offices, and investment companies – the report offers insights into investor sentiment, motivations, and strategic priorities. It shows that despite the challenging macroeconomic backdrop, many investors remain cautiously optimistic: in 2025, they plan to invest up to €225 million in Austrian start-ups and SMEs. Importantly, both angels and institutional investors intend to increase their domestic allocation, signaling untapped potential in the local market.

The Investing Report also reveals a strong thematic focus on future-oriented sectors such as AI, cybersecurity, defense, and medtech, and highlights that many investors are driven by more than just financial returns with a notable emphasis on contributing to growth, sustainability, and the development of the local ecosystem.

At the same time, the report clearly outlines structural challenges: geopolitical uncertainty, high interest rates, and Austria’s regulatory framework are named as key obstacles. Many investors explicitly call for improved investment structures and more predictable conditions. A strong consensus emerges around the importance of the planned sovereign fund (Dachfonds), which is seen as a vital lever to activate additional private capital, spread risk, and strengthen Austria’s financing landscape.

Taken together, the two reports provide a comprehensive view of the current state of the market: the EY Barometer tracks what has happened – a sharp decline in deal activity – while the Austrian Investing Report outlines what could happen, if the right conditions are put in place. It’s a valuable combination: one identifies the urgency, the other points to the opportunity.

5. Given the current market climate, what is your outlook for the rest of 2025? What are your expectations of the End-of-Year EY Report?

   
   

Despite the challenging environment, I’m cautiously optimistic about the second half of 2025. We’re already seeing signs that the ecosystem is adapting: founders are becoming more capital-efficient, investor conversations are regaining focus, and some international funds are starting to look at Austria again, especially in tech-driven verticals like AI, green transformation, and industrial innovation.

While a full rebound may still take time, I expect to see selective momentum return in the coming months, particularly in milestone-based financings and sector-specific opportunities. If public initiatives like the national fund (Dachfonds) begin to materialize, and co-investment structures become more accessible, we could see renewed confidence on both the investor and founder side.

My expectation for the End-of-Year EY Report is not a dramatic turnaround in absolute numbers, but a qualitative shift. I believe we’ll see stronger signals of resilience, more focused investments, and a healthier funding environment built on long-term conviction rather than short-term hype. That would be a good foundation for sustainable growth in 2026 and beyond.