high-tech grÜnderfonds · 101 exits . 8 corporates are very important partners in follow-on...
TRANSCRIPT
HIGH-TECH
GRÜNDERFONDS
Dr. Michael Brandkamp
7th of March 2019
Investor´s View on Technology Transfer
Some HTGF -Insights
2
From Globalisation to Slowbalisation
Source: The Economist Jan 26th 2019 / Adjiedj
Bakas
3
Slowbalisation?
We speed up innovation to improve our future!!!
4
We invest in high-tech startups with strong teams and innovative business models in their
seed stage
1 Founded not more than three years ago, „small businesses“ according to EU definition based in or with independent branch office in
Germany
Who we invest in
Strong
teams
in seed
stage1
Innovative
business
models
High-tech
startups …through life sciences, chemistry &
healthcare
…to digital applications & software…
Across industries from hardware, automation, energy…
5
Key Facts HTGF III
Term 6-year investment phase, 7-year divestment phase
Focus seed stage (< 3 years old)
Investment type Up to € 3 million per company
Value add Strategic support from investment managers and hands-on operational support
provided by experts and network
2017
Founded
316,5 Mio.€
Volume
(106,5 Mio. € by
business
investors)
Industry LPs
6
That’s exactly what HTGF offers: Seed investments, know-how and a broad network
Capital for investments
Know-how from 1,958 transactions
Largest active network in the industry
€892,5m across Fund I - III
Financing from the seed phase
Know-how in all life cycle phases
Full access to an extensive network
0
500
1000
1500
2000
2500
Total Seed Series A, B…
Exit
Num
be
r o
f tr
an
sa
ctio
ns 1,958 507
1,354
97
Experts
Investors Industry
Recruitment
pool
Portfolio
7
Results Portfolio – Follow-up financing and Exits
With an external total
volume of
€ 2.045,7 bn
527 Technology firms
financed
1,407 Rounds of follow-up
financing
79% Private
Capital
€705,6 Million from foreign
investors in 126 firms
Stand: 31.12.2018
101
Exits
8
Corporates are very important partners in follow-on financing rounds, too – Over 2.0 € bn in investment from third-party sources to date, € 320 million from corporates
In 1,377 follow-on financing rounds, a total of approx. € 2,001.11m was raised from various third-party sources
(without HTGF funds) for the portfolio companies
Data: 31.12.2018
Incl. VC Ausl. VC BA stockholders public HTGF corporates
19.5 35.0 22.9 22.5
36.7 32.0 30.7 33.3
74.3 21.9
14.3 23.4
51.5
69.1 49.7
128.7
86.3
89.8
11.4 15.4 25.0
40.9
33.6
40.5
56.7
82.6
62.10
6.0
14.7 10.8
26.3
18.7
16.5
74.0
35.6
89.00
42.0
29.8
30.8 26.3
31.7 20.5
22.8
60.7
45.6
18.70
11.4
13.9 12.4
14.5 11.2 15.8
19.6
17.3
19.00
100.0
124.1 120.8
187.4 189.8 177.3
370.4
300.7
394.9
-
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
220.0
240.0
260.0
280.0
300.0
320.0
340.0
360.0
380.0
400.0
2010 2011 2012 2013 2014 2015 2016 2017 2018
9
IP during investment and follow-on: Origin of Seed-Companies & Assets
IP-Ownership & Transfer of Assets Start-Up Type & Origin of Kow-How
• Direct IP-transfer from institutes or TT-Offices.
• Exclusive licensing agreement ideally with call option
(<5%)
• Partly minority stake held by institutes (<10/25%)
• Team & Asset found newCo as “free agents”
• Opportunistic Spin-Out process due to strategy change
(typical)
• Active process with team build up, minority stake and CV
investment
• IP & Assets are owned by founding team
• IP was filed based on own resources
Spin-Off from Universities or
research institutes
Spin-Out from industry
Self driven (&financed)
development of founders.
35
%
20
%
45
%
10
Case-Studies IP-conditions HTGF: License payments, purchase price and share deals
License payments in % of revenue Purchase price/MS-Payments
in TEUR/T$ Shares University/ Research Institute (at Founding / pre-seed)
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
0
100
200
300
400
500
600
700
800
900
• MS • Purchase Price 0%
5%
10%
15%
20%
25%
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Fundraising in Europe
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
bn €
Source: Invest Europe
Fundraising in Europa – capital raised by VC-Funds in billion €
12
Some issues / de-valuation due to IP during Due Diligence processes
Common IP-issues during DD
• Elder IP (filed at the beginning of research)
• Suboptimal filing strategy
• Early ramp up of fees
• Suboptimal licensing agreement
• Nonspecific and unfavorable conditions
• Timeline of licensing payments
• Unequal de-risking
• Emotions in the negotiation process
• Due to small numbers of cases lack of experience and standards
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Keyfindings Fundraising, New Investments & Exits
Locomotive under Pressure!
Fundraising positive: more inflows than outflows into the VC industry : Industry is growing!
Valuation soar in early (seed & A) and "explode" formally in later rounds
A-rounds by private investors, B + rounds by large foreign VCs, corporates and family offices
New fund of funds initiatives by EIF , EIB, bpi france, KFW Capital are very welcome and important
Business angels are getting more professional - building funds and looking (not always) for cooperation with
institutional investors
New VC funds
Yield prospects for VCs positive due to exits
Start-up scene on the up
14
Keyfindings Fundraising, New Investments & Exits
Locomotive under Pressure!
Fundraising positive: more inflows than outflows into the VC industry: Industry is growing!
Valuation soar in early (seed & A) and "explode" formally in later rounds
A-rounds by private investors, B + rounds by large foreign VCs, corporates and family offices
New fund of funds initiatives by EIF EIB, bpi france, KFW Capital are very welcome and important
Business angels are getting more professional - building funds and looking (not always) for cooperation with
institutional investors
New VC funds
Yield prospects for VCs positive due to exits
Start-up scene on the up
15
Development of the terms
Size of Follow on Investment Round
of HTGF Portfolio (€)
Pre-Money-Valuation (ave)
Follow on investment of HTGF Portfolio (€)
0
2,000,000
4,000,000
6,000,000
8,000,000
2012 2013 2014 2015 2016 2017 2018
Series A Series B
0
10,000,000
20,000,000
30,000,000
2012 2013 2014 2015 2016 2017 2018
Series A Series B
16
Keyfindings Fundraising, New Investments & Exits
Locomotive under Pressure!
Fundraising positive: more inflows than outflows into the VC industry: Industry is growing!
Valuation soar in early (seed & A) and "explode" formally in later rounds
A-rounds by private investors, B + rounds by large foreign VCs, corporates and family offices
New fund of funds initiatives by EIF EIB, bpi france, KFW Capital are very welcome and important
Business angels are getting more professional - building funds and looking (not always) for cooperation with
institutional investors
New VC funds
Yield prospects for VCs positive due to exits
Start-up scene on the up
17
Achtung, hier müssen Logo, Waben und
Anführungszeichen separat kopiert und
positioniert werden.
Diese sind nicht im Layout verankert.
März 2018
raised € 6.6 million in 2018 for growth
18
Achtung, hier müssen Logo, Waben und
Anführungszeichen separat kopiert und
positioniert werden.
Diese sind nicht im Layout verankert.
Juli 2018
raised € 34 million in 2018 for setting up the space station
19
August 2018
raised € 10 million in 2018 for growth
20
raised € 17.4 million in 2018 for clinical trails
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Relationship Management, Marketing/Communication, Office
Controlling/IT
Hardware, Automation, Optical Technologies, Energy, Ind. Software
Strong, committed and bags of potential – Just like you
Qualifications
52% have a scientific background
41% have a commercial background
17 different degrees (incl. science, engineering,
economics, law, humanities and many more)
Investment Team
37 employees 27%
45% founders
of whom are women
183 years of investment
experience
317 years of professional
experience
Managing Directors
Life Science, Materials Science, Healthcare, Chemical
Telecommunications, Software, Media, Internet, e-Commerce