“Industry knowledge matters more than cash”

Leonhard Kossmann and his team set out to solve a problem he saw in the fund industry, where essential third‑party workflows were still handled through Excel and email, a process that was neither secure nor efficient. He founded Fundvis, a Luxembourg FundTech startup (financial technology for the fund industry) that helps regulated financial entities manage all their third‑party providers on one platform, from due diligence and onboarding to monitoring and reporting, with AI used to automate key steps. 

“AI is the big differentiator because we believe this process is 100% automatable,” Mr Kossmann says. The product evolved from an initial focus on DORA, the EU’s Digital Operational Resilience Act that sets strict rules for how financial institutions must manage ICT and third‑party risks, to covering the full ecosystem of counterparties, a shift driven by client demand.

How startup fundraising in Luxembourg relies on expertise

As Fundvis matured, the fundraising approach was grounded in clarity and relevance. After an early phase bootstrapping and a co‑founder’s departure, Mr Kossmann decided to seek business angels, private investors who provide strategic guidance alongside funding, rather than generic capital. Introductions within Luxembourg’s compact community proved decisive. 

The knowledge from the industry was more important than the cash from a non‑expert investor.” Leonhard Kossmann, Fundvis

Through the LHoFT Catapult acceleration programme he met industry experts who later joined the round, and one introduction quickly led to another. A direct outreach brought an early commitment and two Luxembourg family offices joined, showing how doors can open in Luxembourg’s close‑knit ecosystem. These relationships created a boardroom dynamic built on trust and open exchange, which also made negotiating the first term sheet unexpectedly smooth once lawyers formalised the agreement. 

From first funding to meaningful traction

The capital was deployed carefully, primarily into hiring and product development, with phased spending to match organic growth and stick to the plan presented to investors. Mr Kossmann’s advice is to prepare thoroughly, to clearly define the problem being solved and to be explicit about how the money will be used, especially when engaging business angels. He also warns founders not to get lost in valuation discussions. “It is not so much about valuation, it is more about being able to follow the plan that you have,” he notes. 

This focus has translated into steady traction. Fundvis has grown to a team of ten colleagues split between Luxembourg and Romania, while expanding from the fund industry into banking, insurance and larger asset management. The platform itself has moved beyond DORA compliance to include a range of other regulations, offering end‑to‑end third‑party risk and relationship management, which Mr Kossmann believes is the right foundation for AI‑led automation in governance, risk and compliance. 

Anchored by people, strengthened by community

Behind the scenes, personal support from his immediate family and close friends has mattered providing balance during the highs and lows of building a company. This personal anchor complements the broader ecosystem, which also plays an important role. Luxembourg’s finance community is rich in expertise, and it is easy to identify and reach the right people, who are often willing to share advice or their opinion when approached. Fundvis is a graduate of the 13^th Fit 4 Start cohort and obtained a grant for R&D, with guidance from Luxinnovation helping them navigate the application process.

Looking back, Mr Kossmann considers time spent pursuing venture capital conversations, when the fit was unclear, as a detour. He recommends that founders first evaluate whether their business model fits a fund’s investment thesis and, if not, consider focusing on business angels who can offer targeted expertise and practical support. 

Regardless of which route they choose, he stresses the importance of preparation. “The easier you make it for your possible partner, with clear expectations and an organised data room for larger rounds, the more you increase your potential to raise,” he says.

Fundvis’ experience shows how a founder can build momentum by engaging business angels who understand the market and share the same long‑term vision. For Mr Kossmann and his team, this combination of trust, expertise and openness within Luxembourg’s financial community turned fundraising into a collaborative process rather than a transactional one, setting a solid foundation for the company’s next steps.