Female entrepreneurs Janneke Niessen and Joelle Frijters are in the middle of their funding round with the aim of achieving their high growth projections for their business. More than a year ago they started their company Improve Digital an auction platform for unsold advertising space on large websites.

In the meantime they have impressive publishers on board, such as RTL and Le Monde. They have offices in The UK, France, Germany and Benelux and are rolling out in even more markets. For them it's critical to reach specific scale in each market to realize best results for its publishers. As the margins in this sector are low, fast scalability is key for being a healthy profit making company.

We spoke with the founder Janneke Niessen about the lessons learned, role models, business partners and the funding route for Improve Digital. And some valuable tips for female entrepreneurs.

This is your second company, after DQ&A, are you becoming a serial entrepreneur?

"Yes", she laughs. "When I sold my stake in my first company DQ&A, I considered many offers from larger companies, but eventually I decided to start another company. Of course, I could have taken a long break with the amount earned from my sold shares, but I am a workaholic, and having your own company is very rewarding and fun.

I like to build a company from scratch, to grow a company, to put my ideas in it; these are all positive things. Negatives are the huge responsibility that I feel to succeeding, to have employees and the fact that as entrepreneur your "on" 24/7.

So be warned: no way that you can plan your day as entrepreneur, let alone plan a balanced day...

What do you know now, the second time that you set up a company, that you did not know the first time?

When hiring persons for “key positions” in the team, I learned to be very careful.  Members of the leadership team should have all different DNA’s and complement each other, but having the same core values is critical.

And of course there is the founder-manager issue. I think that if we were to extend our management team, we will focus on a fit with the culture of our company and the manner that she or he will be able to work with the founders.

Another thing that I know now is that as a startup with a small home market, one should not wait too long with going the international route, in fact, you can do that pretty soon after you have started.

How did you find each other as business partners?

Joelle was working at Microsoft, my biggest client in my first company. I initiated a dinner to talk with her about my plans to start Improve Digital. We came to an agreement that evening actually. We just thought: let's do it, it feels good.

I had been talking with many people in the industry in order to get the right idea for my second startup.  For some time I really had no clue what I should do next, it felt very ackward, and slowly, by talking to industry experts and professionals, the idea of Improve Digital came during the talks with Joelle.

I know that I did not want to go the startup route on my own, so I started conversations with many people to find the right business partner.

And the Business Model of Improve Digital? Any Seed capital?

We  started with a lot of consultancy activities for the BBC , Reuters, Sanoma and other major clients, in order to have some cash flow as we were building a new technology platform. But soon we also put real cash - seed investment - into the platform. With an angel investor and our own money, we have put almost 1,5 million dollars into the company. Joelle sold her house, I put in part of my payout. And we have not taken a salary for some time. It was the only way to grow as fast as we wanted.

Joelle and myself have equal equity in the company, Joelle is the CEO and I am the COO, we have about 20 people working with us, our turnover is above forecast and we are happy what we have achieved in 1,5 years with many important client-publishers.

We are proud that we have a disruptive business model that works. We are selling the unsold online ad inventory for our client-publishers through a system of auction, and we have many partners who are able to fill those empty spaces on the publishers websites.

What makes an entrepreneur? Was Microsoft a good Spring Board?

Joelle: I always had an entrepreneurial spirit. I mean, I was always busy with starting clubs, coming up with many ideas and execute them with risk. In Microsoft I was 'intrapreneurial' and launched Microsoft Media Networks. however, in a company which you don't own, you cannot be truly entrepreneurial. Only when it is really your own money at stake, and you take risks - calculated risks of course to a certain extent -then I call that entrepreneurship.

Nonetheless, Microsoft has been a perfect breeding ground for me. I know how a corporate works, how they think, what they consider important, how they build their network of partners.

When I worked at Microsoft, many small companies came to pitch to me, but most of the time I could not do anything with them as they did not fit the ‘pace of the music’ of a corporate or did not understand my goals, my score card, they were too small for me to take a risk. Today with Improve Digital it is very valuable to have learned the needs and wants of large corporates. And I am an expert in excell, but so is Janneke.

Did you put the agreement between you, as business partners on paper?

Of course, we have a written agreement which we hope we will never have to use. Right now, we are spending 18 hours a day together, we are business friends, we never argue and know each other strengths and weaknesses. I am responsible for technology and content and Joelle for.. every thing else...! Every day I am confirmed in my conviction that two people know more than on.

And that it is much more fun to have a business together. The partnership works. If we were to sell Improve Digital in a couple of years, we will start another company together, I am sure.

Where are you going to find your Series A investor? Europe? US?

In the Netherlands we have not been very active searching for an investor. Even though we are a Dutch startup, we have already four offices in Europe so we are an international company. Thus, we are looking for an investor with an international network and Dutch VC's may not be the best fit in that respect. Having an investor is also new for me, in my first startup DQ&A cash flow was sufficient to grow organically.

We are planning to become a global company which might involve investors from non European markets.  Opening an office in The US might then be a logic next step, which means that Joelle or myself will move to the US. I am ready for such move when the company is ready. 2013 would be my calculated guess.

Any Technology Grants of European Commission Money?

We benefit from Dutch and European rules in which a technology startup won't have to pay taxes on the salaries of its employees. I think we have an annual cost reduction of about 50,000 Euro. We hired an expert in grants and all these rules, who has arranged this for us. They take a commission on the reduced costs but it is worth every penny.

Why not grow the company out of the cash flow?

If you want to sustain high growth, then investment money is the reasonable route. We are expanding our marketing & sales team to more countries. We need to scale our technology and build extra features in the platform. I am more ambitious than ever before, in my first startup I did not have the previous experience of building an international business. Now I have and I want to accelerate to capture the potential and change the online advertising eco system.

And we need to focus. In the beginning you’re triggered to follow every opportunity or potential  partnership. Now we have a very sharp vision and we focus.

Who are your sparring partners?

We have two advisory board members which are invaluable for us. Not only for their leadership qualities, but but mostly for their contacts in NY and SF. Strategically, it has meant a lot for us and our partnerships. They have a small equity stake in our company, but are also bound to milestones.

What about other female entrepreneurs? Any tips for them?

I don't know many female entrepreneurs, most of the high growth entrepreneurs are men.  Most women start a consultancy for their own, in Dutch we call them 'ZZP', an independent professional without employees. Its great for the money, but you don't build a sustainable company and you don't take a lot of risk. Its definitely a different ballgame then building a high growth company.

One thing surprises me if I talk to starting female entrepreneurs. Most start their company after they have children. They start a company and seek the entrepreneurial route to get a balance in life.... But a work-balance is just impossible if you have your own company, and especially if you start one.

I think female entrepreneurs tend to be modest and I would encourage them to think big and abroad! Don't be afraid to ask others for help and gather a group of people around you that can advice you on certain subjects, for an example an advisory board.

Any rolemodels for you? Who do you want to meet in your entrepreneurial route?

Sylvia Toth: She is one of the first entrepreneurial female tycoons in The Netherlands. When she is interviewed her answers are always right on spot, she is really great and inspirational. She talks business and not the usual women & business issues, as work/balance, childcare etc.

And Neelie Kroes. She has been assigned the interests in our industry and she can play a substantial role. I mean: The acquisition by Google of Doubleclick should not have happened, it has brought about a true monopoly. Too much power. She can do something about it.

And Richard Branson. It may be very obvious, but he has vision and is truly inspirational. And he delivers value.

Finally, Bill Gates, the 'ubernerd' -don't tell him I said so-. He has not done it on his own, but he remains brilliant.

I don't think I am  yet a role model for other female entrepreneurs. Frankly, a lot of people will not know me. Maybe I should take care more of my 'personal' pr. My profile has always been rather obscure, there was no real reason to seek the spotlight, I normally prefer to have the results speak for itself.

But now we are seeking investment, we have to raise our profile. Internationally we are more known than in The Netherlands. We are too niche for The Netherlands.

Any thought about the Glass Ceiling for Female Entrepreneurs?

Joelle: Being a woman is not relevant for the success of a business, but for sales it can come in handy. I think that something like a glass ceiling does exist in some companies, markets and cultures. But there are very nice cracks showing in that ceiling. Diversity goes much further than the women-men equation, it involves cultures, backgrounds, colours etc.

At Improve Digital we are very proud of our own diversity and its something we benefit from every day. Diversity is now a broadly supported value and there are lots  of opportunities.  The Next women and Astia are wonderful organizations that foster such opportunities and we are glad to have become of part of that.

--0-0-0--