Talk – Start-up country Switzerland with Olivier Kofler

Today I have the pleasure of talking to Olivier Kofler, CEO of Carvolution. Olivier, welcome to our Coffee Talk!

Thank you very much! I'm very happy to be here.

Olivier, you co-founded Bexio, a business software company. Later, you built up iBROWS and sold it to PwC. These were two great successes. Today you run Carvolution, an innovative start-up in the automotive industry. How did that come about? How did your journey as a founder begin?

For me, it wasn't so much a specific idea that we wanted to implement, but rather the desire to be an entrepreneur. During my apprenticeship at a small web agency, I was able to experience and learn first-hand what it means to build a company – to make mistakes, grow and develop.

After my apprenticeship, I worked there for another year. During this time, my desire to build something myself grew. At the same time, I was lucky enough to find good co-founders – people I had known for years. Together we decided to set up our own business and started a web agency. We were just 18 or 19 years old at the time.

Would you do it again?

I would found a company again any time. But whether I would do it again so young and with exactly this idea is another question. When we started developing websites and web stores back then, the term «Cloud» was still in its infancy. When you're young, you often lack a professional network, which makes it difficult to acquire your first customers.

Over time, it became easier with more experience, more customers and a larger portfolio. Looking back, it was an extremely instructive time, but also a very tough one. Today, I would probably start up a little later. I would acquire more knowledge and gain more experience before taking the plunge.

You said these were tough times. What is generally the biggest challenge when setting up a company?

The first three or four years were the most difficult. We paid ourselves a very low salary because we wanted to reinvest as much as possible in the company. During that time, I had friends who went out on Thursdays, Fridays and Saturdays. I may have gone out once, but I was always the first one home at 9 or 10 p.m. Firstly, because I couldn't afford to stay out longer. Secondly, because I had to get up early on Saturday mornings to get back to work.

It's always easy in hindsight, isn't it? Then you know that it worked.

Yes, absolutely. But it wasn't so clear at the time. And that's the difficult thing: you invest a lot of time and money, and at some point you want to see a return. If that doesn't happen, it becomes increasingly difficult to motivate yourself. But that's where a good team helps. Sometimes one person has a slump, sometimes the other – and then you give each other the necessary push. It's important to have people around you who motivate you and pull you along.

So you need perseverance, including emotional perseverance. It's not as if the situation will improve overnight – it can take years.

Absolutely. It's an emotional rollercoaster. You wait for the tipping point, the moment when everything takes a turn for the better.

And that was with your web agency?

We founded the web agency when we were 18 or 19. First there were two of us, then three, and then we gradually grew. A funny anecdote: we took on our first intern when we were 19 – he was 40. Suddenly we were the employer of someone twice our age.

We didn't simply pay out our profits, but invested them in new ideas – including Bexio, which was still called EasySys at the time. At some point, we decided to spin off the project from the agency because it was a different business model. Jeremias and Stefan, together with a few others, then made it really big.

Now you're with Carvolution. Tell us briefly what you do.

We offer an alternative to the classic car purchase or leasing: the car subscription. Our customers appreciate three things in particular:

Financial attractiveness – in most cases it is cheaper than leasing or buying.

Flexibility – you can drive a car for a year and then simply return it.

Convenience – everything is included in one package: Insurance, maintenance, service. You pay a fixed monthly fee and don't have to worry about anything.

I always say: it's like Netflix, but for cars. The whole thing works very well and I think we have met a market need.

How did you come up with the idea? Did the concept already exist abroad?

Lea Miggiano and Peter Schüpbach had the idea for a long time. Such models existed in the USA earlier, but timing is crucial. This is one of the most important factors for start-ups. You have to get in at the right moment – not too early, not too late. We waited a relatively long time and then at some point we had the feeling: now is the right time! And then we went all in.

So you need good timing, a strong team – and perhaps also luck?

Yes, absolutely. Luck is almost the biggest factor. Sure, you have to do a lot of things right: Winning customers, building a good team, finding the right strategy. But there are always those moments when everything could have gone differently.

One example: How did we meet our first investor for Bexio? By pure chance, at a field hockey game. If we hadn't met there, everything could have turned out differently. Even during our time at the agency, we got some of our customers by pure luck. Of course you have to perform well afterwards to be recommended. But luck really is a factor that shouldn't be underestimated. And you have to think about how you can influence luck.

In your opinion, is there an economic benefit for start-ups?

Yes, absolutely! Start-ups create jobs and drive innovation. We don't have any natural resources in Switzerland. We have to remain competitive through innovation. And last but not least, start-ups put pressure on established companies to develop further.

In Switzerland, however, the incentives to start a business are rather low. There are secure careers with good salaries. How do you see the framework conditions for start-ups?

The legal framework is good – setting up a company is easy. The authorities are service-oriented. I see the bigger challenge in the business culture. Many banks and insurance companies are not very willing to take risks when it comes to working with start-ups.

So does Switzerland lack the culture of taking risks?

To a certain extent. There are positive changes, but the mindset is not yet as risk-taking as in Silicon Valley, for example.

Is it the capital? Should pension funds be obliged to invest in start-ups?

I don't think there is a lack of capital – at least not in the early stages. Later on, when larger sums are involved, it becomes more difficult. Many investors are currently looking for more liquid investments.

What does money mean to you personally?

Above all, peace of mind – financial independence. I'm not interested in having as much as possible. I don't need much to be happy – an electric bike, a few field hockey games, that's enough. It's more important to me that I don't end up in financial insecurity later on.

How do you invest your money?

Very active. I have four investment buckets:

Real estate – primarily for owner-occupation.

Equities & ETFs – this is the largest part.

Infrastructure – investments with stable, recurring income.

Venture capital – investments in start-ups.

Many founders invest in start-ups after their exit. Is that fun for you?

Yes, totally. I also think it's important to pass on knowledge. In Switzerland, too few people are still concerned with investing. Many simply leave their money in their accounts without realizing that it loses value through inflation.

Last question: What advice would you give your 20-year-old self?

Maybe: take it easy. Many things are not as dramatic as they seem at first.

Olivier, thank you very much for the interview! See you next time.