The study examines venture capital investors and discovers some interesting trends: Last year, investors primarily focused on startups related to Industry 4.0, but are now shifting their attention to the biotech segment. Also interesting: More than 60 percent of the investors surveyed now consider so-called ESG criteria in their investment process. ESG stands for environmental, social, and governance, which describes the social responsibility of financing. Traditional venture capitalists expect an average return on their investments of 38 percent. Corporate venture capital firms are content with a return of 21 percent.
“Positive development of the venture capital ecosystem”
The Federal Government-initiated Future Fund, which is primarily intended to support startups in the growth phase, is not a game changer according to the investors surveyed. Over 70 percent of participants see only a minor impact of the future fund on the startup ecosystem.
“We see a positive development in the venture capital ecosystem, from which startups in Germany in particular benefit,”
says Enrico Reiche, Director at PwC.
"Among other things, the average transaction volume is increasing, while the expected internal rate of return (IRR) is decreasing and contractual provisions of the investment documentation are generally becoming more founder-friendly."
Prof. Dr. Dirk Honold from the Technical University of Nuremberg, who was involved in the study, says:
"The growing maturity of the VC ecosystem, with increasingly professionally structured startup financing in Germany, is complemented by the increasing relevance of ESG criteria. Crucial to success will also be strengthening the pull effect through investor exits through European trade sales and IPOs: Only in this way can a sustainable startup ecosystem emerge for the benefit of the economy."
