It’s no secret that one of the biggest challenges a founder of a startup or SME faces is liquidity.
Especially today as VCs are becoming more selective than ever, betting more money on fewer companies, with AI startups taking around 28% of all VC funding in Q2 alone.
Moreover, bank lending to SMEs has continued to decline in 2024, with 68% of brokers expecting this trend to continue. Yet, 86% of brokers expect the demand for SME financing will only increase.
All this means startups and SMEs are increasingly reliant on new ways to generate working capital. If they don’t’ they risk severe cash flow issues that hinder their ability to meet operational expenses and invest in growth opportunities.
This is where Maex Ament steps in. He’s the visionary founder of Taulia. Taulia is a leading provider of working capital solutions used by over 1.8 million companies worldwide, including giants like Airbus, Nissan, and even the UK Government.
Maex and his team set out with a very specific goal: “When a company invoices a client, they typically have to wait anywhere between 30 to 90 days to receive payment. We wanted to solve that problem for companies.”
While addressing payment delays isn’t a new concept, Maex and his team introduced an innovative twist. They approached the largest corporations globally and leveraged their cash reserves to pay suppliers early in exchange for a “dynamic discount.”
This approach allows SMEs and startups to receive immediate invoice payments, significantly improving cash flow and reducing financial strain. By leveraging the cash reserves of large corporations to pay suppliers early in exchange for a dynamic discount, these smaller businesses can enhance operational efficiency, strengthen supplier relationships, and gain a competitive edge through timely access to funds.
I had the opportunity to sit down with Maex to delve into his startup journey with Taulia. The result is a conversation packed with insights and actionable advice.
Keep scrolling to read the full conversation or give it a listen right here. 👇
Contents
About Maex & Taulia
Rui: Maex thank you so much for doing this with me. Can you please introduce yourself to our audience?
Maex: Absolutely, happy to. My name is Markus Ament, though everyone calls me Maex. I’m German. I currently reside in Madrid with my wife and two daughters. Before moving here, I spent the last 12 years in San Francisco.
Professionally, my background is in payments and supply chain finance. I began my career in the late nineties at SAP as an engineer in the payments department. I then went on to found several startups, starting in Germany and later moving to San Francisco, where I raised capital for my first company.
I returned to Europe four years ago and built a blockchain company on Ethereum in Berlin. Over the past year, I’ve been exploring new opportunities and considering what’s next for me.
R: When I was preparing for this conversation, the first picture I saw on your LinkedIn was of you standing next to Ms. Angela Merkel. I know this happened some time ago, but could you tell us a bit about that experience?
M: It’s definitely a bit of a show-off, I admit, but I’m also quite proud of it. I was invited in either 2016 or 2017 to participate in a panel featuring entrepreneurs from Germany. They invited me as a sort of hybrid between Germany and the US. Angela Merkel was on the panel as well, discussing entrepreneurship and technology in Germany. I had the opportunity to speak with Merkel and the other panellists for almost an hour and even enjoyed a glass of wine with them afterwards. It was a pretty cool experience.
Rui: That sounds incredibly cool.
As I mentioned during our preparation for this conversation, our goal today is to share your insights and lessons with our community of entrepreneurs, helping them apply these insights to their own journeys.
With that in mind, could you give our listeners a quick overview of Taulia and the value you aimed to create when you first set out to build it?
M: Absolutely. As you mentioned, we founded Taulia in 2009 while my co-founders and I were in San Francisco. These co-founders were the same ones I had worked with at a previous company. The core idea behind Taulia is to provide liquidity and cash flow to businesses that need it. On average, companies worldwide wait about 60 days to receive payment after sending an invoice. This period can vary from 30 to 90 days, but the waiting game is a universal challenge.
What we set out to do with Taulia was to solve this problem. While the concept of early payment is not new, our approach was unique. We targeted the largest companies, like Home Depot and Pfizer, using their cash to pay their suppliers early in exchange for a discount on a sliding scale—a method known as dynamic discounting. Initially, we focused on this model but later introduced variations, including bringing in third-party capital. Instead of using Home Depot’s or Pfizer’s cash, we involved banks or financial providers to pay the suppliers early. This way, we could scale the solution to benefit the 1.8 million suppliers you mentioned. In essence, Taulia helps large companies distribute their cash or mitigate their risk throughout the supply chain.
Finding the Perfect Co-Founder
R: You mentioned your co-founders and having met them in other projects.
As you can imagine, this is a frequent topic—how to find co-founders, how to know who to trust, and so on.
How did you meet your co-founders for the first time, and what led you to believe they would be the right fit for this project as well?
M: My first co-founder, Martin Krenzel, I literally met on my first day of traditional work when I joined SAP. We shared an office, and both of us were engineers in the same department. That’s how we met. My second co-founder, I met during my first company. The fourth co-founder has been a good friend of mine for almost 40 years now; we met in middle school in Germany. We created a company before in Germany called Abydos, completely bootstrapped, and sold it to a Swedish company in 2006. Some of us stayed with the acquiring company, and then in 2009, we decided to create Taulia with the same founding team.
R: Did you decide to embark on this new project together because you felt you were complementary, or was it due to philosophical alignment and knowing you could work well together?
M: There were a few reasons. Firstly, we were friends, which helped. We already knew we could work well together and that the chemistry was good. Secondly, we were aligned on the idea. From our previous company, we knew the problem we wanted to solve with Taulia was real and that companies were seeking a solution. So, it was the perfect opportunity for us to tackle this problem together.
R: You mentioned a previous company that was almost like a trial run for Taulia. Could you share a bit about that?
M: Sure. Let me spend a moment on the first company, Abydos. Abydos helped large corporations manage their incoming invoices, known as accounts payable. Companies like Apple and Intel used our software to process their invoices faster and pay suppliers earlier. We optimized the paper process, made it electronic, and implemented workflows to ensure timely payments. However, despite the efficiencies, companies often stuck to the net 60 terms written on the invoice, meaning they paid in 60 days to manage their working capital better.
We realized that our first company laid the foundation for what we wanted to achieve with Taulia. Our clients often asked if we could do something about early payments. We knew there was a need for this solution. Another reason was personal; in our first company, we experienced high growth but struggled to collect cash fast enough, impacting our ability to hire and serve clients. When we received an acquisition offer, we decided to sell to keep up with our growth.
Lastly, the timing was right. The idea for Taulia emerged around 2008-2009, during the financial crisis. Companies were going out of business, and large corporations were holding onto their cash longer. For example, Anheuser Busch pushed out payment terms to 360 days, forcing small and medium businesses to wait a year for their money, which was unsustainable. All these factors together convinced us it was time to build Taulia.
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Building the First Version of Taulia
R: How did you go about validating Taulia itself?
Did you build an MVP first, or did you go straight for a full application with multiple services? What was the roadmap like?
M: Yeah. I mean, we all read Eric Ries, I’m sure. So there’s a place for lean, there’s a place for MVPs, but I also believe there’s a place for conviction and simply doing what you think works. We had the luxury of having the first company, which you called an MVP, and maybe we had that MVP in the previous company for six years and knew what was needed next. So, what I’m trying to say is we actually built for at least six or nine months a product that we thought would solve the problem without really seeking any outside input. We had outside input from the previous company, so let’s count that, and we just built it.
In the enterprise space—specifically, large corporate B2B, where I’ve spent my whole career—it’s tougher to do MVPs. You don’t have the luxury of experimenting with large corporations. Back in 2007-2009, when we started transitioning to Taulia, SAP was still on-prem. Doing MVPs on-prem is another challenge—you can’t test things as easily as in SaaS-based solutions.
R: Absolutely. An MVP needs to address pain points or whatever is necessary for adoption and feedback for iteration.
Some audiences are tougher than others, and it sounds like you had enough information for an educated guess to build something meaningful. You knew the market well.
Let’s dig a bit deeper into your go-to-market strategy. What was your strategy to secure early adopters?
You had a network already, I’m assuming you had some ways to bring interesting people into the funnel. Can you talk a bit about that?
M: Absolutely. When we started in 2009, our previous company, which we built from 2000 to 2006, had about 300 corporate clients, including the biggest names like Apple and Intel. Our initial sales approach in 2009, once we had a minimum sellable product, was to target those existing clients. Interestingly, they were not our first customers. We heavily banked on them, even during our VC process, highlighting our previous 300 customers as potential leads. Despite our efforts—emails, calls, and talks—there was hesitance, and they did not become our first customers.
This pattern repeated with my next company, Centrifuge, in the blockchain world. We tried the same approach with our existing clients, but they weren’t our first customers either. So, the natural inclination to leverage the previously installed base didn’t work out, and I’m still not entirely sure why.
What did work—and works for every startup I’ve been involved with—is piggybacking on partners in the enterprise space. If you find the right partner with a close relationship in an account and provide a complementary product or feature, it can be very effective. This worked well for us in 2009-2010 with a company called OB10 that did electronic invoicing. They brought us into an account, which became pretty defining for Taulia—our first customer was Pfizer.
R: Were you and your co-founders handling this process to secure early adopters yourselves, or was anyone else involved?
M: It was the four of us, absolutely. Mainly Martin in Germany, as he stayed there, and my co-founder Bertram and myself. From a sales perspective, the three of us were heavily involved in selling.
R: Which makes sense. At the start, founders do everything, and selling must be a constant focus.
Before we dive into the details of the challenges you faced building this company and the road to product-market fit, are there any key moments from the journey between launching the first version and raising the first meaningful round that you’d like to share?
M: We tried to secure capital early on. In the first company, we completely bootstrapped in Germany. In fact, I didn’t know about venture capital back in 2000 or even 2005. In 2009, we decided this was a big topic that needed outside capital. We started early to raise funds and found some early angels who committed to invest but made it a precondition that we find additional institutional capital.
So, we somehow got connected to AngelList in San Francisco. AngelList was very new at the time, around 2009 or early 2010. We were fortunate to be the first startup featured on AngelList for institutional money. Talia was mentioned, and within minutes or hours, emails from investors poured in. We could then say we already had a meaningful amount committed from angels, attracting great VCs. We eventually raised our Series A, almost skipping the seed round, which was unusual.
Securing our first customer was a bit of a chicken-and-egg problem. Pfizer, our first customer, wanted the security of backing, while our VCs waited for the first customer to write a check. Both sides eventually gave us some leeway, and we secured both in the same week.
Raising Money as an Early-Stage Startup
R: How long did it take to solve this? Were you back and forth for weeks or months?
M: I think our fundraising process took about six months. Although we were second-time founders, it was our first time raising VC money. We were in San Francisco, the venture capital capital, but most of us had been there for just a few months, and we didn’t have connections in the VC world. We were the “weird Germans” building a network.
We managed with the help of some angels and advisors. This is why I advise giving back, as it helped us tremendously to have people in the Valley who could point us in the right direction. I remember a random guy who looked at our deck, ripped it apart, and told us it was nonsense because it was “too German.” He was right. We changed the deck, and although we didn’t close a term sheet the next day, our feedback and traction improved significantly. Getting that feedback and those advisors, whether formal or informal, was crucial. The chicken-and-egg game with the VC and the customer lasted a few weeks, but the whole process was much longer.
R: Okay, so I want to go back to something you said—having that feedback from a potential investor ripping the pitch apart.
I’m sure you spoke with many people and received a lot of advice. You couldn’t act on all of it, otherwise, you’d spend all your time changing the product.
So, what led you to believe that this particular advice was right and that you should implement these changes? And did that reflect on the product also?
M: Actually, on the product side, Rui, we never changed anything based on investor feedback. The feedback about being “too German” was about our pitch—not salesy or aggressive enough, too realistic. Investors wanted to see higher projections, even if they seemed almost impossible. We changed those numbers and our mindset.
One key lesson I learned in the US, especially working with a Swedish company’s US counterpart, was the art and science of sales. In Germany, sales is often seen as a dirty job, like door-to-door selling. But in the US, it’s respected as an art and a science. Before founding Taulia in 2009, I had the chance to work with one of the best salespeople and leaders I know. Applying those sales techniques and being more aggressive, optimistic, and passionate was crucial in our pitch.
R: Clear. I want to go back to another thing you said; that break with AngelList. How did that happen?
M: I don’t know. It was through one of our advisors and network. My co-founder and then CEO, Bertram, got an introduction to Naval Ravikant, who allowed us to be featured on AngelList. Back then, AngelList was very new and simplistic. Through hard networking in a city we didn’t know, we eventually succeeded. Kudos to Bertram for making that connection, which changed the game for us.
R: That’s what I want to highlight. Often, we look at successful companies and founders and think they started from zero and had a straight path to success.
But there are so many breaks in there—things that go terribly wrong and things that go extremely well.
It’s important to highlight that luck plays a big part. Being in the right place at the right time is part of the game for everyone.
M: If I may add, you can steer your luck a bit. Being in the right place matters. In 2008-2009, being in San Francisco was crucial for securing venture capital. It was a different game then. Our decision to be in San Francisco helped shape our luck.
R: Circling back to investors, any other important lessons on how to deal with them, approach them, and secure funding?
M: Maybe this isn’t entirely actionable, but not everything an investor says is true. They don’t know the space as well as we do. Any advice they give is more generic. For example, we were advised to stay away from SAP clients, but that was our secret sauce. We knew what to do with SAP, which had a significant market share. I’m glad we ignored that advice.
Often, investors give excuses, saying something is just a feature. My advice is not to take everything they say as gospel. They are just humans and sometimes make up smart-sounding advice. You only need to convince one investor. It’s not like selling to a hundred companies; you need just one term sheet. Focus on identifying that one investor you can double, triple, and quadruple down on.
Another tip is not to over-optimize on valuation. The difference between giving away 11% or 11.5% of your company is not critical if you have a great idea. Run a process like a sales process, with a funnel and timelines. Keep track of everything, have dates, and create a small CRM. Start with investors you’re less keen on, then move to those you really want. Create a bit of FOMO. Hold back news before fundraising and strategically release it during the process to build momentum.
R: You mentioned the importance of smart money versus just money. Was this part of your strategy back then?
M: Absolutely. I’m super happy with the investors we found early in the journey of Taulia and later on as well. We raised a total of $250 million over many rounds of funding. We were very strategic. However, there are situations where startups might not have the luxury to be picky. Sometimes the product is early, the timing is off, or other factors make it difficult to attract the ideal investors. If you can be picky, be picky. We had that luxury and could choose our investors back then, even more so with Centrifuge, the company we founded in 2017 in Berlin. We were able to be very selective and get the right investors—a combination of top European tech investors, fintech investors, and some crypto investors. But let’s be fair, not everyone has that luxury at the beginning, especially first-time founders.
The Early-Stage Startup Team
R: Who did you have with you in the early days? What was the team composition?
M: My co-founders. I had the luxury of building three, maybe even four companies with the same team—co-founders I know inside and out. We complement each other extremely well. Some of us are more sales-oriented, some are more product-focused, and many of us are very technical. We built the first versions of our product, or in Taulia’s case, a complex enterprise product, completely on our own. That’s an advantage of going with co-founders you know. The downside is that you split the equity. You go alone, you have 100%; with four, you have 25%. We always believed in equal shares for everyone.
Our first hires, still friends to this day, joined as interns in San Francisco before we raised money. Once we raised funds, we tapped into people from the industry—competitors or adjacent companies with experience. We hired people who aspired to higher positions. For example, my best friend Joe Hyland was brought in as a marketing director, knowing he would become a marketing leader, which he did. He became the CMO and helped bring ON24 public about a year ago. We were fortunate to find such people.
R: So you bet a lot on potential, people who could grow with the company.
M: Yes, exactly. There was a point in time when this changed slightly. When you reach around 100-200 people, you might want to bring in someone who has done it multiple times, like a CFO who can potentially take the company public. It’s tough to find the right CFO, but in general, you want to hire for experience in certain key roles as you grow. The exact point varies for every company, but at some stage, you need to think differently.
R: If there were a playbook, everyone would have unicorns, right? It’s about making the most educated guesses with the information you have.
Tell me, you mentioned there were four of you. What were the main strengths of each of you?
M: As I hinted before, Bertram, our CEO, had a background in consulting and was experienced in managing, sales, and strategy. I was more focused on product and ideas, making me the logical candidate for head of product. Philipp, a genius developer with a strategic angle, was the perfect CTO. Martin, who stayed in Germany while the rest of us were in San Francisco, assumed the role of COO and managed our European operations. Initially, Bertram raised money for six to nine months with our help, while the three of us built the product.
R: It goes back to the importance of a strong co-founding team.
M: Yes, I’d rather share the equity and responsibility with my co-founders. It’s money well spent.
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A Day-in-the-Life of an Early-Stage Startup Founder
R: What was a typical day in the early days? How many hours a day, how many days a week? Can you share a peek behind the curtain?
M: In the early days, I was coding and selling all day. It was a horrible 70-80 hour week. I was not proud of it, but that was the reality. Coding, selling to VCs, first customers, employees, and partners. It took a toll on family life, but I had great support from my wife, who understood the drill. Work was my circle of friends, my co-founders, and the first employees. It was amazing, but hard work.
R: Can you please expand a bit on how you balanced this with your personal life?
M: My wife, who met me during my first startup, was very supportive. It didn’t balance well, but now I’m wiser and manage better. Back then, work was my social life. I was happy working 10-15 hours a day and then going out for drinks with my colleagues. It took a toll on the family, but from a social perspective, it was perfect.
Advice for Entrepreneurs Starting Out Today
R: What would be your main advice for an entrepreneur starting now?
M: If in doubt, do it as a team. Find a co-founder—technical if you’re business-savvy, business-savvy if you’re technical. Platforms like On Deck or Entrepreneur First are great for finding co-founders. And don’t do it on the side. Commit fully. Try it for six months to a year. Push for it if you can.
R: Again, if you can, do it. Just like we were discussing smart money earlier, if you have the opportunity, do it.
M: Imposter syndrome is real. Everyone has it. If you feel insecure in a new space, remember everyone is winging it. It took me too long to learn this, but it’s true for everyone.
R: That’s a great point. It made me work harder early in my career because I felt I didn’t know what I was doing. It can be a friend if your mindset is right.
Now, can you share one key lesson you learned on Product?
M: Sometimes it’s beneficial to go into a space a little naive. You don’t need everything figured out. Too much research can scare you off. It’s okay not to have everything figured out initially.
R: And one key lesson you learned about marketing?
M: Marketing is amazing, like the cousin of sales. In Europe, marketing is often seen as just PR and demand generation. But it’s so much more. A great marketing leader can make even the most boring product exciting. Think bigger, be holistic. Sometimes a bit of bullshitting helps in marketing.
R: Can you share one key lesson you learned about people or hiring?
M: Hiring friends early on made it easier. We hired a lot from competitors and the industry, people we had worked with before. But get rid of bad apples fast. If someone isn’t working out, especially culturally, address it quickly. It’s harder in Europe, but still necessary.
R: Agreed. Were you present for the interviews? What was the process to bring in the first few team members?
M: All of us founders were involved in interviewing. Probably until we had 50 people, three out of the four founders, and often all four, were involved in the hiring process. It’s definitely a founder’s job in the early stages.
R: Couldn’t agree more. I think I heard Reid Hoffman say once that The first 150 employees are your cultural co-founders. They shape the company’s future.
Max, last question: one resource that was invaluable to your success—be it a book, podcast, mentor, or something else?
M: I can’t pick just one. Naval Ravikant’s writings, Tim Ferriss’s and Joe Rogan’s podcasts, Ben Horowitz’s books, and my coaches. Coaches have been incredibly helpful throughout my career. If you have the opportunity, work with coaches or join mentor circles.
Thank you, Maex…
… For taking the time to sit down with me.
For our readers, the insights Maex provided are invaluable.
Whether you’re an entrepreneur facing liquidity issues or simply looking to streamline your financial operations, the lessons from Taulia’s success are clear: innovative thinking and strategic partnerships can transform financial challenges into opportunities for growth.
Thank you for reading & listening.
