Unternehmertum Venture Capital Partners (UVC Partners) was founded in 2011 and currently has two funds under management. The early-stage venture capital firm focuses on B2B technologies. Its current portfolio includes companies such as Flixbus, Konux, VEACT and fos4XWe asked Benjamin Erhart, a partner at UVC Partners, for his thoughts. Erhart joined the team in mid-October. The expansion coincides with the launch of the second fund, which already had a first closing in early 2017 and is targeting a volume of €70-80 million.
Please introduce yourselves briefly!
Unternehmertum Venture Capital Partners (UVC Partners) is an early-stage venture capital firm that invests in technology-based startups from the German-speaking region (DACH). We focus on companies in the areas of
Industry
ial Technologies and Smart Enterprises.
The fund is managed by five experienced partners. Although legally independent, we are part of the UnternehmerTUM ecosystem, as the name suggests.
UnternehmerTUM is Europe's leading innovation and startup center. With over 150 employees and more than 50 industry partners, it has extensive experience in building young companies. Our portfolio companies benefit from close collaboration with the UnternehmerTUM platform. Through this close partnership, we can offer startups unique access to talent, customers, and partners.
Focus on Smart Enterprises and Industrial Technologies
What do you prefer to invest in?
As an investor with significant experience in various industries, we are not afraid of complex products, risky development processes, or long sales cycles – what matters to us is that the team can develop or transform a significantly large market in the long term. A key focus is on B2B business models in the areas of Industry 4.0/IoT, Enterprise Software/SaaS, Mobility, and Smart City.
Up to 8 million euros investment possible
We invest between €500,000 and €3 million per investment round, and up to €8 million in total per startup. We invest in the seed to early Series B phase. We place a particular focus on the founding team, a defensible technology or a differentiated business model, and an attractive market.
Would you also invest in unknown industries?
We have a specific focus in the aforementioned areas. Here, we can help our companies with our expertise and industrial network. In general, we strive to have a thorough understanding of the markets we operate in. We remain true to our focus, but without putting on blinders. We recognize that the nature of our business means that every disruptive company operates in uncharted territory. As long as it's a B2B technology startup, we're fundamentally open and curious.
… and do you prefer to invest in Munich startups?
We focus on the DACH region and are also able to invest internationally. Thus, we don't limit ourselves to Munich-based startups, but in the past we have favored investing in Munich-based companies such as Flixbus, Konux, and fos4X.
The local proximity and strong networking within the UnternehmerTUM ecosystem are a huge advantage for founders and investors. Nevertheless, we have already made three out of four investments in our second fund outside of Bavaria. Software companies seeking access to the industry are particularly actively approaching us.
What kind of startup would you never invest in?
We don't see ourselves as the ideal investor for B2C projects; we lack the necessary depth of expertise. We're also not the ideal partner for companies whose strategies require a very high capital investment.
Industry Deep Dives and more
How do you scout for promising companies?
A major advantage compared to many other investors is certainly the location of our offices in the UnternehmerTUM buildings. The high frequency with which startup teams, students, and industry partners come to us to launch their companies with Xpreneurs or the TechFounders Accelerator, develop in the MakerSpace, explore the latest technologies at UnternehmerTUM X, or work with industry partners in the Digital Product School is unique and helps us build early and strong relationships with outstanding entrepreneurs.
We also actively engage with the outside world and participate in numerous events. We also conduct industry deep dives, where we take a closer look at specific verticals and talk to relevant startups. Many exciting startups are also brought to our attention through our network.
“Strong industry contacts”
Do startups have to be afraid that you will interfere too much?
We support founders wherever it makes sense or where they need support. This can be in the area of sales or when it comes to establishing contact with potential industrial customers. Here, we can fully leverage our strong industry contacts and offer sustainable added value. However, we are not a company builder or business angel who intervenes operationally in the business; rather, we act as a venture capital investor who empowers entrepreneurs rather than patronizing them.
At what stage do startups ideally approach you?
Startups should contact us during the Seed or Series A phase. It's best to establish contact well in advance of the planned closing date of the financing round, allowing enough time to get to know each other. This helps build a foundation of mutual trust and enable robust due diligence.
How long does it take from the first contact to the conclusion of the contract?
At UVC Partners, we conduct thorough due diligence and take the time to thoroughly understand the company, its technology, market, competition, and business model. This enables us to make informed investment decisions and build a solid foundation of information. We believe that this in-depth understanding of the company and the market in which it operates is essential for providing optimal support to startups after the investment.
Awarded in Munich: “Technological substance and customer orientation”
What is the Munich startup scene doing right from an investors' perspective? What could it do better?
Munich-based teams are often characterized by their technological depth, customer focus, and ability to quickly iterate with the industry. We should simply continue to build on these strengths.
Last but not least: Who do startups approach when they want to talk to you?
The entire team, including all analysts, associates, and partners, is directly accessible. There should be no barriers for good entrepreneurs to contact us. You can find us through our network, at events, via www.uvcpartners.com or LinkedIn.
