From Formula 1 world champion to venture capitalist. The new life of the former Mercedes driver who launched a venture capital fund to support European startups.
The adrenaline never stops flowing. After hanging up his helmet, former Formula 1 champion Nico Rosberg threw himself body and soul into an even riskier adventure: investing in venture capital, or in unlisted companies with high development potential. Through his fund, Rosberg Ventures, the Finnish driver now aims to grow European startups.
Tell us about the transition from Formula 1 champion to venture capitalist. How did your interest in the world of finance arise??
The world of startups has always fascinated me. I like visionaries, people who have an idea, a project, capable of becoming something that could even change our lives. I approached investments in the world of startups just after finishing my ten-year experience as a Formula 1 driver. And so far it has been a very interesting and exciting journey.
Can you tell us a little about your investment company Rosberg Ventures? How did the idea to create the €75 million fund of funds come about?
Thanks to Formula 1, I have accumulated a significant amount of wealth that I want to manage as best I can. This is why I started studying how the main American universities, such as Yale and Stanford, manage to pass down their wealth from generation to generation. These institutions are recognized for their ability to invest in a very structured way, diversifying across multiple asset classes and markets. More than 20% of their wealth is allocated to venture capital, the asset class that has historically generated the best performance. And so I thought: I would also like to try to replicate this strategy with my wealth. These institutions invest in the best venture capital funds that cover current technological themes such as artificial intelligence. And so Rosberg Ventures was born, which invests from Italy and Germany in the best venture capital funds in the world.
You have invested in over 35 high-potential startups. How did you build this network? And most importantly, what are the sectors you focus on?
I am very lucky because the popularity of Formula 1 is growing incredibly, especially in the technology sector. There are so many fans in Europe and even more in America and this helps me get in touch with many people from the world of finance and business. We also often organize events dedicated to venture capital where we have the opportunity to exchange ideas on current trends. But above all we have created a team of people specialized in helping startups approach the world of finance.
Rosberg X Racing competes in the Extreme E series for electric SUVs. Can you tell us about these activities and what are your future goals?
Sustainability also plays an important role in venture capital, just think that Climate Tech is one of the current technological trends. In this sense, the Extreme E championship allows me to combine my passion for racing with that for the environment and sustainability. My team has been world champion twice in the last three years. The only time we lost was against the team of my former teammate at Mercedes, Lewis Hamilton. Next year, the “Extreme E” competition will instead be run with hydrogen cars.
In your opinion, is there potential in European startups, can they compete with American ones?
The potential is there because in Europe we have enormous talent and some of the best universities in the world. However, some important factors are missing, such as government support for entrepreneurs and more streamlined regulation, capable of encouraging the creation of new companies. Making everything more difficult is also the fact that startups are not yet on the radar of European institutional investors. In America, pension funds are among the largest investors in the sector and this counts for a lot. If we then look at Italy, only four startups have become unicorns, companies with a market value of more than one billion euros. In the US, however, there are several thousand.
You mentioned Lewis Hamilton and your initiatives related to the environment and sustainability. Did you remain friends in the end?
Yes, in the end yes. He is someone who has really won a lot. He was a great rival of mine at the time but now we are on good terms. But what is funny is that beyond the rivalry in Formula 1 we are now also rivals in the Extreme E races. This championship contributes to increasing visibility on issues related to sustainability in the motorsports sector. The races go like this, one time he wins, the other time I win. The important thing is the contribution to our causes.
The full article was published in the June issue of the monthly Wall Street Italia. To subscribe click here
