high-tech gründerfonds – seed investor in high-tech start-ups
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High-Tech Gründerfonds – seed investor in high-tech start-ups. „Success factors of a public-private partnership”. Knowledge Economy Forum 2010 “Diversification through Innovation: Prospects for Growth” May 5, 2010 Dr. Alex v. Frankenberg - PowerPoint PPT PresentationTRANSCRIPT
High-Tech Gründerfonds – seed investor in high-tech start-ups
„Success factors of a public-private partnership”
Knowledge Economy Forum 2010 “Diversification through Innovation: Prospects for Growth”
May 5, 2010Dr. Alex v. FrankenbergHigh-Tech Gründerfonds Management GmbH
German economy generates huge trade surplus with high-tech products
German industries are leading in the world economy (machine tools, automotive, medicine, chemicals, …)
Long and successful tradition of small and medium sized companies („Mittelstand”)
On one hand … … on the other hand
Start-up industry under-developed in Germany: 16 seed investments 2004 and 2005 by members of the German VC association
Venture Capital industry rapidly declining / escaping to later stages
No start-up in DAX 30 since SAP
But: Billions of government money spent on technology development
The challenge in 2004: Vastly underutilized potential
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Founded: 2005
Volume: 272 Mio. EUR
Investors: German Government, KfW, BASF, Dt. Telekom, Siemens, Daimler, Robert Bosch, Carl Zeiss
Planned duration: 6 years investment plus 7 years disinvestment period
Focus: Innovative high-tech companies in the seed phase (start of operations < 12 months)
Investment: 500.000 – 1.000.000 equity per companylead investor
Support: Support through local coachesvalue add by High-Tech Gründerfonds team
High-Tech Gründerfonds: Key facts
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Closing of 186 investments1) / 226 commitments
Closing of 138 follow-on investments by third parties2)
External capital raised: >209 million Euro
Thereof: 71% private capital
Eight exits, five profitable
Operations
Set-up of a high-number of working partnerships
Impact on the early stage market on several levels (market share of 50% in the Germany seed market)
Number of “produced” paper millionaires: 89
Set-up of high performance organization
Fun
Other results
Main results
1) 4 in 2005, 52 in 2006, 40 in 2007, 42 in 2008, 34 in 2009, 14 in 2010 2) Various public and private investors
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Involvement of government representatives, experts with background of public financing and private investors
Private contribution to the fund (17m, 6,3%)
Strong understanding of the venture capital business model
Systematic inclusion of relevant know-how (e.g. mistakes from the past)
„Independent“ management company that can focus on goals („no political influence“)
Right timing at the bottom of the market
Success factors – strategic and conceptual
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Freedom to set up management company with few restrictions (no strings to an existing organization)
Set-up of a high-performance organization:- Consistent breakdown of company goals and variable pay on individual level- High recruiting standards- Fluctuation consistent with performance
Significant freedom for investment managers- Laptops, mobile phone and mobile e-mail for everyone (2005)- no forms to allow job related travel- Very flexible work hours, no time sheet recording
Strong effort to build a positive performance culture
Success factors – operational
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… looking forward to a fruitful cooperation!
High-Tech GründerfondsLudwig-Erhard-Allee 2 53175 Bonnwww.high-tech-gruenderfonds.de
Dr. Matthias [email protected]
Benjamin Erhart0228 / [email protected]
Klaus Lehmann0228 / [email protected]
Dr. Andreas Olmes0228 / [email protected]
Andreas Quauke0228 / [email protected]
Kay G. Balster0228 / [email protected]
Clemens von Bergmann0228 / [email protected]
Dr. Caroline Fichtner0228 / [email protected]
Dr. Bernd Goergen0228 / [email protected]
Dr. Michael Nettersheim0228 / [email protected]
Dr. Mehran Rafigh0228 / [email protected]
Marco Winzer0228 / [email protected]
Holger Heinen0228 / [email protected]
Markus Kreßmann0228 / 96568532
Dr. Björn Momsen0228 / [email protected]
Simon Schneider0228 / [email protected] Schnelle0228 / [email protected]
Dr. Michael Brandkamp0228 / [email protected]
Dr. Alex von Frankenberg0228 / [email protected]
Curtis MacDonald0228 / [email protected]