High-Tech Gründerfonds starts lining up investments for HTGF III fund
September 15, 2017
Europe’s most active seed-stage investor announces first investments from third fund, HTGF III
High-Tech Gründerfonds’ third fund is now operational After announcing the successful first close at the 2017 Family Day – the biggest event of the year for the venture capital sector in Germany – HTGF has now begun approving investments from the new fund. The launch coincides with HTGF’s publication of new investment terms.
This week sees the first investment decisions being made at HTGF, with Europe’s largest seed-stage investor announcing the operational launch of the HTGF III fund as planned. It currently has a volume of EUR 250 million. The target volume for the final close has now been raised to EUR 310 million, with additional corporate investors having already pledged to commit funds.
“Capital isn’t the only thing we provide, as we also draw on the experience we have amassed from over 480 seed-stage investments, 4,000 transactions with more than 1,500 investors, and almost 90 exits when investing in new companies. With 28 major and medium-sized companies having invested in the fund, we offer all of our portfolio companies unique access to the German business world. At the same time, our third fund can respond to start-ups’ needs more specifically thanks to individually configured terms and its greater volume,” explains Dr. Michael Brandkamp, Managing Director of High-Tech Gründerfonds.
HTGF has the right solution to meet every start-up’s financing needs
“We offer founders tailored and appropriate support as well as flexible financing. We can invest up to EUR 1 million alone or together with other investors in the first financing round, while a total of up to EUR 3 million in equity capital is available per company,” explains Dr. Alex von Frankenberg, Managing Director of the fund.
The financing options available have also become a lot more attractive on the whole. There is a high proportion of private investors in the HTGF III fund, accounting for over 30 percent of the fund volume. This enables HTGF to adopt a completely flexible investment approach, investing on its own or together with partners, with a freely negotiable company valuation or using the established subordinated loan model, as in the past. The move to raise the investment volume is aimed at start-ups in all areas that have higher financing needs from the beginning.
HTGF has also made another change that will be highly appealing to founders. They previously had an obligation to contribute their own capital. Although still preferred, this is now optional. In addition, HTGF now invests in companies that are up to three years old. HTGF will continue to invest across Germany, but financing can also be provided to companies headquartered outside of Germany in exceptional cases. Additional fund investors and the first investments will be announced by the end of the year.
High-Tech Gründerfonds (HTGF) is Germany’s most active seed stage investor. With a fund volume of EUR 885 million (EUR 272 million HTGF I, EUR 304 million HTGF II, EUR 310 million HTGF III (target volume), we provide financing for young, innovative technology-driven start-ups and actively support them in implementing their business idea. The focus of our three investment teams is on hardware-related engineering, life science, chemicals and material science, as well as software, media and the internet. Investors in this public-private partnership include the German Federal Ministry of Economics and Energy, the KfW, Fraunhofer-Gesellschaft e.V. and numerous strategic corporate investors, including ALTANA, BASF, B.Braun, Robert Bosch, BÜFA, CEWE, Deutsche Post DHL, Drillisch AG, EVONIK, Haniel, Hettich, Knauf, Körber, LANXESS, media + more venture Beteiligungs GmbH & Co. KG, PHOENIX CONTACT, Postbank, QIAGEN, SAP, Schufa, Schwarz Gruppe, STIHL, Thüga, Vector Informatik and WACKER.
Head of Public Relations, High-Tech Gründerfonds Management GmbH
Tel.: +49 (0) 228 82300-107