Building a pan-European operational VC, in depth with Uwe Horstmann, Project A

Project A bets operational support can build Europe's next leaders

Project A is a pan-European venture firm built on the bet that operational help, offered without control, can win deals and build bigger companies. Horstmann argues that Europe is entering a self-reinforcing cycle of talent, capital and exits, and that its own job is to add operators without making founders dependent on them. German tax treatment of stock options and fierce competition for venture talent are the main constraints on that cycle. Crypto and public listings remain side questions for now.

Takeaways

• Project A pairs capital with 100 operators. The firm manages over €600m and invests €500,000 to €10m across seed and Series A rounds, sometimes $30m to $40m into a company like Trade Republic. Its 100-person operational team covers marketing, product, technology, sales and recruiting, offered optionally without sweat equity.
• Project A backs standalone founders without control. Horstmann contrasts Project A with Rocket Internet, where he worked after college. Project A only invests in standalone companies and never takes control. Support is optionality, so founders keep independence while drawing on operators when useful.
• Europe faces a self-reinforcing startup explosion. Horstmann describes a Cambrian explosion where more talent, capital, companies, exits and investors reinforce one another. Founders are moving into healthcare, industrial production, the future of work and other sectors. European software companies can now become market leaders in the US.
• German dry-income tax threatens startup ownership. Employees pay tax on stock options before any money changes hands. Horstmann says this is a problem for startups that share ownership widely and would reduce the number of future business angels, weakening the ecosystem's reinforcing cycle.
• Project A screens 10,000 companies a year. Automated screening widened the funnel, yet Horstmann says the investment process stays largely manual and relationship-driven. The firm uses CRM systems such as Salesforce or Affinity, and Horstmann personally sees about 20 companies a month.
• VC firms face fierce competition for talent. Horstmann says the fight spans investing and operational roles. Project A measures employee satisfaction every two weeks to improve its employee net promoter score and wants transparent, objective paths into venture capital, because hiring from personal networks reproduces the same decision-makers.
• VC firm IPOs stay off Project A's agenda. Horstmann says public listings of venture firms are rare in Europe and not on Project A's agenda. He questions whether investors would buy a portfolio or a capability, compares the idea to a SPAC, and wants convincing it is a genius idea.