It is lunch time in New York, dinner time in the Netherlands. My Skype conversation with Steven van Wel, one of the founders of Karma, keeps him away from his "delicious panini". He doesn't seem to mind and in the next hour Steven talks passionately about his Dutch-American team, what it takes to make it big, and reasons why successful startups should (re-)turn to the Netherlands. “I would come back for the stroopwafels and bitterballen.”
Good Karma
At Karma they produce a tiny portable wifi modem, small enough to fit in your pocket, with big enough coverage to connect users to the internet all across the United Stated. Indeed, Karma launched across the ocean because the United States provide a larger market. One that is in need of better connectivity and thus of this ingenious device. Steven exclaims: “The companies that own the best thing in the world right now, the internet, are the worst companies in the world!” That’s how Karma was born, allowing users to “take back the internet.”
From NL to US
Karma is based in New York City: the founders bumped into Techstars in New York, got invited to join the program (“We were lucky, they do an amazing job at hyping everything”), and fell in love with the city. New York provided the perfect conditions to work with a team in Amsterdam, Rotterdam and New York; with only six hours time difference team members can talk during waking hours, and as a company work around the clock. “It was a match made in heaven.” About a third of Karma’s team is now based in the Netherlands and Italy, working from home. “The talent that is available in the Netherlands is amazing. From designers to engineers, you have super talented people. And when you look at it from an American perspective, Europe offers low-wages countries. That’s a benefit.” To recruit talent Karma has a simple method: “People who work at Karma bring in their friends. It results in a well-oiled machine working at your company. And sometimes you just have to hire someone you look up to. Someone who will do a way better job than you.”
The Dutch startup scene
“There is a vibrant startup scene in The Netherlands.” One that deserves its successes to be highlighted says Steven. “A Dutch-designed app like Sketch, competing with Adobe making them afraid, that’s crazy! Many more Dutch startups are starting to think bigger, like the guys from Human who have a global view. And just look at the huge successes of Adyen and Booking.com.” Although it’s important to focus on startups launching from the Netherlands, Steven believes it is even more interesting to bring Dutch companies to other markets and then make sure they come back once they are successful. A trend he already sees going on. When asked for the reasons to come back Steven’s list goes on. The Netherlands is well-situated making it easy to get to other hubs in Europe. Everything is well taken care of: great infrastructure (oh the internet!) and public transportation. “From the outside, where we are now, we always giggle when people speak about the different Dutch hubs. Eindhoven, Rotterdam, Amsterdam: it’s the same distance to travel between these cities as it is to go from the Bronx to Brooklyn. There’s one hub and that is the Netherlands.
Jump
Having launched startups in The Netherlands in the past, Steven and his co-founders have always been involved in the Dutch startup scene. He was a leading figure in setting up the StartupDelta Mentoring Network founded by DutchBasecamp, The Consulate General in NY and the Ministry of Economic Affairs. He himself is a mentor in the NY chapter. “I now try to help out startups who are thinking of fundraising or launching a product in the US. I think our experience and connections are valuable for those who are trying to make the jump. At the same time, you don’t always have to make the jump. There are great investors in The Netherlands and Europe.” In fact, the first two funders of Karma were Dutch men, allowing Steven and his cohorts to buy a ticket to New York where they struck luck with Techstars. “It’s a misperception that finding funding in the U.S. is easier. I spoke to at least two hundred people, and we now have twelve investors. We follow one rule: we never talk to investors if they weren’t introduced by current investors.”
Europe
It becomes clear that when it comes to startup territory, Steven sees Europe as an entity. “I would like to see more startups think about Europe as one market. It should be one big scene. From an American startup point of view we think of three big expansion markets: the US, Europe and Asia. One piece of advice we like to give startups that come over here is to look at your idea, then think bigger, then think ten times bigger. Because that’s how people think over here. Of course there are differences between European countries, The Netherlands, for example, are all about innovation, but as an eco-system we should all support each other. It’s not about competing, it’s about becoming a strong alternative to the US.”