HTGF and bm|t have renewed their coöperation agreement and have thus reinforced their commitment to supporting and financing young Thuringian technology companies.
bm|t, via the Thüringer Start-up-Fonds (TSF, translation: Thuringia Start-up Fund), and HTGF have agreed to jointly provide up to €750,000 for first-round financing and, with the participation of private investors, up to €2.4 million in follow-on financing.
“The coöperation agreement gives us a strong foundation for addressing financing gaps in the early-stage funding of young technology companies while also offering our portfolio companies the network and knowledge of a powerful and respected partner like HTGF,” said Udo Werner, Managing Director of bm|t.
“Together with bm|t, we want to support the Thuringian entrepreneurs and high-tech start-ups with the necessary seed capital and network. Thuringia is underrepresented in our portfolio and only comprises 4% of HTGF’s total investments. With the renewal of our coöperation agreement, we want to set an example and encourage more founders to establish their companies in Thuringia,” added Dr. Michael Brandkamp, Managing Director of High-Tech Gründerfonds.
The coöperation between HTGF and bm|t goes beyond financing activities and the supervision and support of the management of local companies. They also continue to work together to carry out initiatives to strengthen the local entrepreneurial scene, including consultation days at local universities. HTGF will also support Investor Days Thuringia, which will take place from June 14–16 and will offer both young, innovative start-ups and established companies the opportunity to present their ideas to a broad investor network.
bm|t (beteiligungsmanagement thüringen GmbH) is the investment company of the Free State of Thuringia. bm|t manages the investment of capital from the state as well as institutional investors to promote both young and established Thuringian companies with growth potential. The investment mandate of the TSF is in young, innovative companies within five years of founding that are in the midst of developing or bringing to market new or significantly improved products, processes or services. The TSF has a fund volume of €18.75 million. bm|t also manages other funds that concentrate on financing the growth phases of companies.
High-Tech Gründerfonds invests in young, high potential high-tech start-ups. The seed financing provided is designed to enable start-ups to take an idea through prototyping and to market launch. Typically, High-Tech Gruenderfonds invests up to €600,000 in the seed stage, with the potential for up to a total of €2 million per portfolio company in follow-on financing. Investors in this public/private partnership include the Federal Ministry of Economics and Energy, the KfW Banking Group, and strategic corporate investors including 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 €576 million under management in two funds (€272 million HTGF I, €304 million HTGF II).