Before acquiring a company, due diligence is essential. But what about when starting a business? How closely should you scrutinise a co-founder? For Empion's founders Annika von Mutius and Larissa Leitner, the trial phase was short but intense: „We hardly knew each other“, says von Mutius.

The 31-year-old and her three years older business partner met at WHU in Vallendar, where both were working on their doctorates. Leitner researched corporate culture in medium-sized companies, while von Mutius developed customisation models for data. Their startup, Empion, which was founded in 2022, combines both approaches. Using artificial intelligence, Empion's technology matches candidates and companies based on corporate culture and values. Data from a culture questionnaire is aligned with applicant information. The idea: „A candidate who feels comfortable with the company culture is more likely to stay long-term“, von Mutius explains.

Today, the co-founders have a clear division of labour: Leitner primarily handles internal matters, while von Mutius focuses more on external appointments and customer relations. Starting a company wasn't a long-held dream, even though she comes from an entrepreneurial family. After her studies, she earned her doctorate in mathematics. „But that by itself became too academic for me“, she states. She then spent four years as Head of Product at Multiply Labs in San Francisco, experiencing the startup atmosphere of Silicon Valley. „I was one of the first employees and could witness both the technology and entrepreneurship firsthand – it was totally inspiring.“

What impressed her the most was the spirit of innovation. „It's much more recognised that new business ideas require courage – and that they can fail," she says. Empion does not disclose current revenue figures. In 2022, the startup secured 2.4 million euros in a pre-seed funding round, followed by a 6 million euros funding round last year. Investors include Berlin-based venture capital firm Cavalry Ventures, VR Ventures, and Redstone VC. Growth investors are increasingly focusing on revenue development, observes von Mutius. This has helped Empion: „We monetized quickly, showing rapid revenue growth.“

Empion recently completed its first acquisition by taking over Zalvus, a company founded in 2015 that also focuses on enhancing hiring processes through technology. This is an unusual move, less than three years after the founding. „In some ways, it overwhelmed us, but that's a feeling every founder encounters almost daily“, notes von Mutius. „Empion is developing so quickly that we have a completely new company every few months.“ The connection to the target company came through an investor who learned that Zalvus was up for sale. „We didn't have a strategic intent to acquire, but it was a good opportunity.“

The acquisition is intended to help Empion grow more rapidly. Zalvus brings about 600 customers. How many of the 50 employees will transition to Empion will become clear in the coming months. The acquisition also sends a signal to the market. Due to hiring freezes and layoffs at companies like VW or Thyssenkrupp, some recruiting firms are struggling. „Growing organically in such a phase sets you apart", she says. The next challenge is to integrate the companies without losing sight of core competencies and day-to-day operations.

Von Mutius discusses work themes with her parents, who "support me and think what I'm doing is cool“, she says. However, she initially had to do some convincing. „Our family business is in wire processing. In contrast, Empion has no tangible product.“

The AI Act, which regulates the use of artificial intelligence technologies in the EU, is viewed critically by the founder, who "would have preferred a more application-oriented approach.“ The main problem, in her view: users of Empion's tools might be required to fulfill certain documentation obligations in the future. „This could deter medium-sized companies from using AI technology out of fear of regulatory burdens, causing them to fall behind“, fears von Mutius. The industry is currently discussing a type of seal that could signal to customers that an application complies with the AI Act, and can be used without concern.

Empion has become more independent of the two founders in recent years. „That's a tremendous gain because it gives us the freedom to contribute to the integration.“ But both had to adjust to the new situation. „We went through a very challenging phase“, says von Mutius. „If we hadn't worked things out, we might have forgotten how to collaborate.“ The differences emerged after Empion grew from a two-woman operation to nearly 50 people. „At first, it was just the two of us in the office“, says von Mutius. As the setting changed, they hardly saw each other. „We had almost grown apart, like an old couple.“

Today, Monday afternoons are firmly blocked in the founders' calendars. „Then we discuss strategic topics, but also things that concern us outside of Empion.“ Afterwards, they go out to eat. „That's our weekly date night,“ explains von Mutius. She particularly appreciates one quality in her co-founder: „No matter what the mood is or what's happening – we can rely on each other.“

They now also use their technology when hiring for their team. One requirement is crucial for the founder: „We're a startup. Everyone has to contribute operationally.“ And what does she do when she's not working? „I'd actually prefer to meet other people. My parents always criticized me for not having any hobbies“. von Mutius admits. However, she took piano lessons as a child – and recently, the instrument has found a place in her Berlin apartment, a gift from her parents. „In my free time, I practice again from time to time.“