According to an evaluation report published by the German Federal Ministry for Economic Affairs and Energy (BMWi), public/private investment partnership High-Tech Gründerfonds II has delivered a consistent performance.
The document shows that HTGF has positioned itself as Germany’s most important seed-financing provider by quite some distance, boasting “a highly integrated network of contacts, comprising financing partners as well as innovative start-ups offering appealing investment opportunities“.
A poll reveals that portfolio companies well value the management know-how offered, the advice provided by investment managers, the seed-financing expertise and red tape absence. In addition, industrial investors benefit from cooperating with the firm enjoying advantages including access to new technologies, innovative business ideas and joint development projects with the startups.
Finally, a conservative estimate of the exit potential puts the repayment potential of Fund I at around €270m. As of 31 December 2015, the total value of the fund, which was launched in 2005, in relation to the capital called stood at 78%.
Led by Dr. Michael Brandkamp, Managing Director, HTGF invests in high potential high-tech startups providing seed financing to enable them to take an idea through prototyping and to market launch. Typically, the firm invests €600m in the seed stage, with the potential for up to a total of €2m per portfolio company in follow-on financing. Investors in the partnership include the Federal Ministry of Economics and Energy, the KfW Banking Group, and strategic corporate investors ALTANA, BASF, Bayer, B. Braun, Robert Bosch, CEWE, Daimler, Deutsche Post DHL, Deutsche Telekom, Evonik, Lanxess, media + more venture Beteiligungs GmbH & Co. KG, METRO, Qiagen, RWE Innogy, SAP, Tengelmann and Carl Zeiss.
High-Tech Gründerfonds has about €576m under management in two funds (€272m in HTGF I, €304m in HTGF II).