Freelancer to Founder: From Initial Idea To The First Investment

May 15, 2024 10:00

Tino Schmutzler, founder of Berlin Startup School, tells at Freelance Unlocked in May 2024 how he went from freelancing to founding a company and taking investment. He shares rules he says he made for himself. What he says about company law and liability reflects May 2024, is his own simplified account and not legal advice.

**What the talk covers**

- Do not found a company first. Start with an idea, and test it cheaply. He tested about 20 ideas over roughly six months, starting with free webinars for would-be founders.
- Test a hypothesis by doing something small. His examples are Airbnb posting listings on university pin boards and a grocery delivery start-up that began as a WhatsApp group.
- Sell early, even to test clients. He tried several formats at low prices, found which sold best, and stopped one-to-one sales after two months in favour of groups, which he sees as a first step to scaling.
- Scale through people. He went to 10 to 20 events a month, and says two business angels he met there became his investors. Talk about your idea, he adds, since being copied matters less than being found.
- Found a company only if necessary, he says. It costs money and gets complicated with several partners. A freelancer is personally liable, a company is a first barrier, and a German UG should start with a few thousand euros, not one.
- Investment: he gave away 49 percent, which he calls unusual and tied to a social enterprise. His advice is to give away as little as possible.

**From the Q&A**

He recommends starting as a freelancer before building a product, since you can sell your time while you find out what scales. His MVP advice: offer one feature that solves the problem best.

**Who it's for**

Freelancers who are weighing a company, a product or investors.