The seed investor High-Tech Gründerfonds (HTGF) finances technology startups with growth potential and has supported almost 700 startups since 2005. The volume of the third fund generation of 319.5 million euros was exceeded by more than 50 percent in the fourth fund generation with 493.8 million euros.
HTGF has also increased the number of private investors compared to fund generation three, according to its own statements. In addition to the Bundesministerium für Wirtschaft und Klimaschutz (BMWK) and KfW Capital, 45 private companies are participating in the fund. Large corporations and family offices are also among the investors. Alexa Gorman represents the private investors in the new fund. As Senior Vice President of SAP.io, Gorman heads all of SAP’s startup activities worldwide and is recognized as an expert in corporate venture capital.
Simplified investment criteria
With the new fund generation, HTGF wants to invest even more flexibly and quickly and to simplify investment criteria. Startups only need to be younger than three years old and have their headquarters in Germany or possess a German operating facility if the company is based outside Europe.
Additionally, the fund can now provide more capital per startup: up to one million euros in the seed round is possible. Overall, HTGF can invest up to four million euros in a startup across all financing rounds.
Hidden champions & large corporations
Alex von Frankenberg, managing director of High-Tech Gründerfonds, comments on this:
“We are proud that despite a sometimes extremely challenging environment, we have significantly expanded the number of private investors in HTGF IV. In addition to the very strong economic performance of the first three funds, the diverse added value for private investors was decisive. The investor base of HTGF IV reflects the strengths of the German economy: alongside a majority of hidden champions, selected large corporations, the Fraunhofer Society, and for the first time five family offices as investors are part of HTGF IV.”
And Guido Schlitzer, managing director of High-Tech Gründerfonds, adds:
“The very successful fundraising enables us to continue financing startups with forward-looking innovations in large numbers. Thanks to our fund investors, we can deploy more capital per investment. This is a significant change in this market phase.”
