More money per startup: According to startup scene plans the High-Tech Founders Fund (HTGF) has increased its investment limit from two to three million euros per startup. This will enable the semi-public venture capital firm to invest in startups for which the fund's previous financing options were insufficient.
600,000 euros in the seed phase and up to another 1.4 million euros in follow-on financing – this is the investment framework within which the HTGF has operated so far. This is now set to change. In order to become more attractive to startups that require more than two million euros in funding upfront, the investment limit per startup is now expected to be increased by another million euros. This decision is intended to increase the number of startups from the chemical, environmental, and mechanical engineering sectors included in the HTGF portfolio in the future.
With this step, the venture capitalist from Bonn is probably also reacting to a Criticism from the consulting firm Technopolis, which recommended an increase in the funding limit as part of an evaluation.
More money through more private investors
The HTGF is financed through funds from the federal budget, the KfW Development Bank, and 18 companies such as Daimler, Telekom, and the Post Office. To increase the investment volume, additional private investors are to be brought on board. The target volume of the "new" fund is 300 million euros with a targeted company share of 30 percent.
Munich startups have also been able to become successful with the help of the HTGF, including Magazine or eGym.
