For this edition of our feature „5 Questions With“ we spoke to Franz Zöchbauer, Managing Director of Verbund X Ventures. 

While EY’s Start-up Investment Barometer notes a 17% drop in total funding in 2024 — Verbund X Ventures has remained one of the most active investors, ranking fourth among Austria’s top investors. While many funding rounds have shrunk, Verbund X Ventures continues to back high-potential startups in energy, sustainability, and technology.

In this exclusive interview, Franz Zöchbauer, shares insights into their investment strategy, speaks about Verbund x Ventures bold plans for the future, and their commitment to supporting the energy transition. He also speaks about how Verbund X Ventures supports its portfolio companies and looks ahead to the key trends and opportunities shaping 2025.

Interview

Despite the decline in overall startup investments in Austria in 2024, Verbund X Ventures remained one of the most active investors. What has driven your continued commitment to supporting Austrian startups, and how do you select the right opportunities in a challenging market?

In Austria and Europe, we are facing some of the most challenging times. VERBUND has made the bold decision to build an initial portfolio of 15 startup investments by 2026 through VERBUND X Ventures as its investment vehicle. A commitment of €30 million has been secured for this purpose. As Stanford Professor Ilya Strebulaev aptly states: „There is a way to understand what’s going to be the next big thing; there is a way to predict the future to some extent. It’s follow VC.“ The transformation of our energy system is one of the greatest challenges of our time, and this reality remains unchanged even in the face of economic difficulties.

Through VERBUND X Ventures, we are actively investing in disruptive startups across Europe to accelerate the energy transition. The fact that five out of our seven recent investments have been in Austrian startups showcases the incredible talent and innovative startups we have right here in Austria. We are investing in startups that have the potential to shape the energy future and offer breakthrough solutions to the key challenges facing our industry.

Now more than ever, it’s time for us to boldly and collaboratively drive innovation across Austria and Europe, seizing the immense opportunities presented by a rapidly evolving world.

Your portfolio includes companies like Easelink, eFriends, and eologix-ping, which focus on sustainability and energy innovation. What are some key milestones these startups have achieved, and how do they align with Verbund X Ventures’ long-term vision?

The mentioned startups all have outstanding founders and teams who are offering highly innovative solutions with their technologies. I believe the founders themselves are the best ones to provide insight into the current status of their companies. However, I can tell you how well we collaborate with them. For example, we organized our VERBUND Ventures Portfolio Day at the beginning of January, where representatives from the startups spent a full day with us and members of VERBUND Business Units, exchanging ideas about plans for 2025 and discussing current business challenges. Together, we worked intensively on potential collaboration opportunities.

With VERBUND X Ventures, we aim to actively shape the energy future, bringing innovations to life faster—this is what connects us with the startups. We support them in scaling their businesses while simultaneously strengthening the innovation power of VERBUND.

With fewer large investment rounds and increased capital efficiency requirements, how does Verbund X Ventures support its portfolio companies beyond financing to help them scale successfully?

At VERBUND X Ventures, we follow the principle of „Entrepreneurs First,“ meaning we offer startups a range of support options they can choose from. Here are three examples: Network Access, Specialized Expertise, and Long-Term Commitment.

First, we connect startups with our network of industry leaders, corporate partners, and investors, creating valuable growth opportunities. Second, as VERBUND, we bring exceptional expertise in the energy sector, leveraging our experience as Austria’s leading energy provider. Third, we are deeply committed to fostering long-term partnerships, ensuring startups receive the sustained support they need to thrive over the long term.

A significant portion of Austrian startup investments in 2024 came from international investors. What role do you see for local investors like Verbund X Ventures in strengthening Austria’s innovation ecosystem, and how do you collaborate with international partners?

Investments from international investors in Austrian startups are a strong signal, highlighting the innovation potential of Austria. But the same holds true for Austria as it does for all of Europe: we must significantly strengthen our venture ecosystem to close the innovation gap with other regions of the world, as outlined in the Draghi Report. Imagine the powerful boost we could give to Austria’s economic and innovation landscape if the top 100 or top 1,000 companies in Austria, like VERBUND, started investing in startups through their own CVC units or VC funds. We could trigger a major innovation and growth effect.

At VERBUND X Ventures, we work very closely with international partners on a day-to-day basis. We typically invest alongside other European venture units in selected startups, maintaining close collaboration and exchange as we continue to support the startups. Our strong international network was highly visible at our first VERBUND X Venture Day last October at ISTA in Klosterneuburg, which we organized in collaboration with XISTA. With 130 guests from 90 different organizations and over 20 countries, we discussed key future challenges and brainstormed new joint initiatives. Additionally, we are also a member of the Global Corporate Venturing Leadership Society, where we engage with the world’s leading CVCs to exchange ideas on relevant topics.

Looking ahead to 2025, are there specific sectors, technologies, or business models that excite you the most for future investments?

Our focus is on energy transformation, and the challenges involved in transitioning to a renewable-based energy system are immense. Recently, we announced our investment with TTTECH in the joint venture TTTECH ZYNE. ZYNE is developing a real-time energy management platform for industry and commercial sectors, which is a crucial topic for many large industrial companies. We are particularly interested in areas such as new energy storage technologies and related business models, aggregation solutions, and much more in 2025. We are open to conversations and already prepared for outstanding investment opportunities in 2025.