16VC Founder Sridhar Arunagiri on RI5E Berlin Lessons: Transparency and Fair Global Teams
Reflections on early-stage operations, fair compensation, and building international teams the right way
Building Beyond Investments
At 16VC, our mission goes beyond writing checks. We invest in early-stage AI and tech startups worldwide—but along the way, we also build and scale our own teams. In doing so, we learn lessons that shape not just our internal culture but also how we support the founders we back.
In 2024, while preparing to launch our venture studio RI5E in Berlin, I faced one of the most instructive challenges of my career. It wasn’t about deal flow or capital—it was about operations, people, and staying true to principles of transparency and fairness.
The Berlin HR Experiment
To support early operations, we hired a small HR team in Berlin:
5 Indian professionals, each earning around €2,500/month
2–3 interns, earning around €700/month
The plan was to onboard a larger technical team of about 30 engineers through recruitment and job seeker visas. But things didn’t go as planned. Some team members moved on earlier than expected, and visa processes proved more complex than anticipated.
Memories and Realities of Berlin
Not everything in Berlin was about challenges. We had great times working out of WeWork, where the energy of the city’s international startup ecosystem gave us lasting memories and friendships. Those moments reminded me why building teams across borders is so rewarding.
At the same time, the legal and structural hurdles were real. Unlike the US or UK, where registering a company can be done online in hours, forming a German entity (GmbH or mini-GmbH) is a lengthy, expensive, and paperwork-heavy process. We spent significant resources navigating compliance—an important reminder that global expansion requires both operational and legal resilience.
Proof of Transparency
At 16VC, transparency is not just a value—it’s a practice. To demonstrate this, we shared images from our Berlin journey, along with blurred payment confirmations from Wise. We hid names for privacy reasons, but they confirm that multiple team members were paid.
WeWork Berlin workspace photos – showing the environment where the team collaborated.
Wise payment confirmations (blurred) – evidence of salaries sent, reinforcing our commitment to fair compensation.
These aren’t just records—they are proof of our principle: agreements must always be honored.
An Important Update
Transparency also means being honest about where things did not go well. While some payments were made in full and on time, the reality is that:
Some team members did not receive their payments on time, and in a few cases, not in full, due to the sudden closure of Berlin operations.
A few software engineers from India, who invested in their own visa process, lost money when the planned expansion stalled.
As a firm, we also lost close to €30,000–40,000 in this process.
This was a hard lesson: even with the best intentions, early-stage operations can break down, and when they do, the financial and human cost is real.
But this is not about blame or fighting—it is about learning. These experiences have already shaped how we operate today, with stronger contracts, clearer processes, and more structured financial planning for global teams.
Lessons Learned
From Berlin, I carried forward five important lessons:
Transparency and Fair Compensation Must Be Prioritized
We didn’t get this perfect in Berlin, but the failures taught us how to build better safeguards.International Hiring Requires Clear Processes
Visas, compliance, and cultural considerations mean global hiring can’t be improvised.Adapt Quickly When Plans Change
Even well-intentioned plans fail. What matters is how fast you adjust.Legal & Structural Costs Are Higher Than Expected
Setting up a GmbH is far more complex and costly than US/UK incorporation.Transparency Builds Long-Term Credibility
Owning challenges publicly reinforces integrity, even when the story is messy.
Moving Forward
The Berlin HR experiment was not perfect, but it shaped how 16VC operates today. Since then, we’ve:
Established clear contracts and compensation agreements globally
Built transparent onboarding processes for international collaborators
Expanded into Latin America and Eastern Europe with refined hiring systems
These practices now guide how we support startups as well—embedding integrity, professionalism, and fairness into every partnership.
Closing Reflection
The Berlin chapter wasn’t about failure—it was about clarity. We made memories at WeWork, navigated the complexity of GmbH formation, faced painful financial and operational lessons, and carried forward principles that now define our approach at 16VC.
Yes, we lost money. Yes, some individuals lost money too. But what matters is that we have learned deeply from this experience—and committed ourselves to making sure future operations are more robust, fair, and transparent.
At 16VC, every challenge is a chance to improve, and every lesson strengthens our ability to support founders who are building the future of AI and technology.