It takes courage to navigate the early stages of entrepreneurship. The rate of failure is high – but for those that go on to succeed and sustain long-term growth, the potential for value creation can be significant. This raises a broader question: how can one identify which early-stage founders are likely to build enduring businesses, and which may not?
Early-stage ventures: innovation and potential
The start-up ecosystem is a hotbed of innovation. Some businesses have the potential to transform industries and change the world. Numerous companies that are now household names and ubiquitous in everyday life were, at some point, a start-up themselves. How we shop today, for example, is a completely different experience to 30 years ago with the advent and proliferation of e-commerce and last-mile logistics.
More recently, artificial intelligence has emerged as a technology that has the potential to reshape how people work, live and play. Beyond the established corporations investing heavily in the space, many of the companies at the forefront of the so-called AI revolution are start-ups, some of which have achieved multi-billion-dollar valuations.
“My role is to help founders navigate the journey from early stage to hyper growth and hopefully through to managing significant wealth, often forming family offices,” says Freddie Lindesay, Private Banker to Tech Founders and Family Offices at Deutsche Bank Private Bank.
“That involves identifying companies at the earlier stage in the journey where they would benefit from the help from Deutsche Bank, whether it may be growth capital for the business or personal wealth structuring,” he adds.
“By helping founders early on in their journeys, we can build lasting relationships grounded in trust as their needs evolve over time.”
How can a private bank support founders?
Although founders may be experts in their fields and the finances of their ventures, personal financial planning could often be a secondary consideration to the immediate demands of building and scaling the business. A private bank can play a valuable role by helping founders step back and take a more structured, holistic and forward-looking perspective to managing their wealth.
This could include planning for liquidity ahead of major events, providing tailored lending where appropriate, and supporting diversification once capital becomes available.
It also extends to wealth structuring across tax, estate and family considerations, alongside broader risk management and protection planning. Beyond this, founders can benefit from support around key transactions – such as fundraising or exit preparation – as well as guidance on cross-border complexities and access to a wider network of specialist expertise, from corporate finance and wealth management to family office and succession planning.
“A coordinated ‘One Bank’ approach positions Deutsche Bank as a global Hausbank that can assist founders throughout their journey,” notes Lindesay.
“It brings together expertise from across the corporate, investment and private bank to support founders from early-stage funding and capital raises through to personal structuring, liquidity management, and corporate treasury, aiming to meet their needs every step of the way.”