Simone Menne in conversation: “We need to get back to basics again” 

Simone Menne is one of the most important voices on the subject of innovation in Germany. She has a really good understanding of the business landscape in this country. Having previously held roles as CFO of Lufthansa and Boehringer Ingelheim, today she is an active member of multiple supervisory boards and shares her expertise with a wide audience. She will also be the keynote speaker at High-Tech Gründerfonds’ Family Day taking place on 9 and 10 May in Bonn. Ahead of the event, we sat down for a chat about innovation, disruption and having the right focus. 

Ms Menne, the title of your talk at Family Day is: “The new order of innovation in Germany”. What is the situation regarding innovations within companies? 

There is a lot of innovation at major companies. New solutions are regularly being produced, discovered and improved upon. But this type of innovation is not very visible and rarely disruptive. 

OK, let’s just touch on the aspects of visibility and disruption. In terms of visibility, why does innovation tend to occur behind the scenes and out of public view?  

There are many reasons for this. One is the need to be discrete – to ensure that not too many people find out about what you’re working on. Another reason is fear – that the innovation might not work. In this instance, it is about minimising your own risk. 

Is it a problem that innovations at large companies tend not to be seen by the outside world?  

No, not at all. Those seeking to innovate need to exchange with others and share knowledge with the right people. If companies build a barrier of silence around them, then that will become a problem at some point. But larger companies can overcome these barriers internally. They are ultimately big enough to have colleagues that would also challenge somebody like me. 

You mentioned the idea of “disruption”. Why are innovations within companies rarely disruptive? 

We’re great innovators when it comes to things we do well. Take the example of the electric engine in the automobile industry, for instance. Germany’s car manufacturers jumped on this disruptive innovation later than others. But now we’re very good at catching up. We tend to build better electric engines than our international competitors. We also have the capability of building ever-improving battery technology. We can be very innovative. But we rarely call our own business models into question. 

Why is that? Why do we challenge ourselves all too rarely? 

Because we have been very successful over the last 30 years in Germany. And as can be seen currently, we can still be very successful even in challenging times. But our business models tend not to be sustainable and are shrinking. In order to grow, you have to allow for disruption. And that’s something we’re not good at in Germany. 

If we are to believe the findings of studies such as the Global Innovation Index, Germany is not among the leaders of innovation. What do we have to do to redress this issue?  

We need to get back to basics urgently. And by that I mean education and infrastructure. If we can invest here and successfully teach the next generation how to develop things and simply give it a go, then this will also have a long-term impact on the innovative capacities of our companies.  

Can start-ups lend a helping hand? 

Absolutely! Start-ups are almost always disruptive and often have new ideas. The challenge lies in establishing a foothold when cooperating with companies. “Not invented here” continues to be a popular mantra among many companies. This means that many are not open to accepting new ideas if they haven’t been developed in-house. 

How would you describe the start-up ecosystem in Germany? 

I’ve learnt that there isn’t one single start-up ecosystem in Germany. Each regional scene is slightly different. I myself come from Kiel, where young companies are very active and successful in the field of future energy sources. In Munich, however, there is a completely different focus. It is important for start-ups in general to know what the optimal environment for their business is. And to set up shop wherever that best ecosystem may be. 

What do start-ups need to do to collaborate successfully with companies? 

Start-ups need to be well prepared. They need to find out exactly what solution they have to offer for which problem and for which challenge within companies. Many start-ups overreach with their ideas, creating solutions that established companies simply do not need.  

What advice would you give to start-ups? 

Be active and build up a network. Start-ups should know their industry inside out. And also find the right people. It is not typically the executive board that the start-up has developed a solution for, but rather another – potentially smaller – unit within a company. 

What do you expect from an event like Family Day? 

That start-ups, companies and investors have the chance to come together. Events such as Family Day are a fantastic platform to address the needs of start-ups. But it is also an opportunity to open the eyes of companies. They have the chance to witness the drive of young entrepreneurs in person and identify which mechanisms they might require. I’m really looking forward to meeting everyone there. 

Space for new ideas: investment in new space

In his earlier career, Christian Ziach used to work on space missions. Now, he’s investing in start-ups taking off into space. The HTGF Principal is viewed as an expert in the field of new space. In this interview, he talks about his latest investment, sheds light on the commercial use of space, highlights opportunities for start-ups, and he also reveals how he once helped to bring a rock sample from space down to Earth.

Christian, where does your fascination with space travel come from?

I was once able to accompany a successful mission into space. In 2012, I took up a position at the German Aerospace Center. Together with our French and Japanese colleagues, we sent a space probe to an asteroid in 2014 and successfully landed on it in 2018. Rock samples were collected and then brought back down to Earth. It was a textbook mission. SpaceX was already very active at this time and it was becoming increasingly clear to me that commercial space travel would continue to grow in significance and that a paradigm shift was on the cards.

The new space scene has developed strongly ever since. HTGF is also investing in start-ups from this field.

We’ve held a stake in Reflex Aerospace since December. They develop satellites that are precisely tailored to customer requirements, but at the price of a satellite from “off the shelf”.  

That sounds like squaring the circle.

While this might sound like a contradiction, it can actually be achieved through a fully digital approach to design and development as well as the use of state-of-the-art production processes such as 3D printing. The start-up also has a really good overall set-up with very strong partners and is part of the joint venture UNIO. The latter is a consortium of renowned companies seeking to establish their own satellite telecommunications constellation. Last week the EU also earmarked 2.4 billion euros to build its own satellite constellation, which will lead to exciting synergies. Ultimately, these and other satellites will have to be launched into space. We’re also well positioned in this regard with our portfolio company Orbex, which is developing a cost-efficient launcher and is well placed to secure a piece of the booming new space market.

Why has the commercial potential only started to be exploited in the last few years? The problem was always the really high start-up costs involved. With traditional rockets, it cost more than 20,000 euros to transport just one kilogram into space. With such high initial costs, nobody wanted to risk the possibility that the satellites wouldn’t work after being launched into space. They therefore underwent very intensive testing, which pushed the costs up even further. There was also a very low willingness to test out anything truly innovative in space. Instead, there was a focus on technologies that had been tried and tested in space, and innovations fell by the wayside. As a result, we didn’t return to the moon and we built the International Space Station at painstaking effort, but otherwise remained in low-Earth orbit in crewed space flight. Even in the commercial sphere, there were no truly successful business models for a long time – with the exception of the field of satellite telecommunications. That was until SpaceX transformed the market.

SpaceX is Elon Musk’s space exploration company. What impact is it having on current market developments?

Musk recognised that the high start-up costs were an obstacle to the increased use of space travel and that it was ludicrous to throw away rockets after only being used once. He therefore invested the millions he’d earned from his PayPal exit in SpaceX and set about establishing a rocket production process that was highly vertically integrated and through which he was able to drastically reduce manufacturing costs. He also succeeded in making the first stage of rockets reusable. Plans are even in place for the launch of a fully reusable rocket in the near future. For years he was ridiculed for the project by established companies, particularly in Europe. But nobody’s laughing now, with SpaceX launching rockets into space on an almost weekly basis and having taken a lot of commercial market share from Ariane in Europe. 
In addition to reducing initial costs, there were also many achievements in the field of microelectronics, which led to smaller, more efficient and less expensive satellite systems. All this has resulted in a paradigm shift in the field of space travel.

What characterises this new paradigm? Space travel used to be the domain of the nation state. Now we are seeing an increasing number of private companies entering the fray. Knowledge of space travel is no longer confined to just a few states. This is why we often talk of the democratisation of space travel. Companies like SpaceX or Blue Origin, set up by Amazon founder Jeff Bezos, are now able to send astronauts into space. Very real plans are already in place for the next space station to be set up and operated by private companies. NASA, ESA and Co. would then become tenants as it were. It can therefore be expected that costs for research, development and production in space will continue to fall drastically, which will help new business models to break through.

In what areas are we already seeing the advantages of space travel?

There are many. Take climate and the environment, for example. It was satellites that first showed us the extent of the hole in the ozone layer. Only then was a ban on chlorofluorocarbons, or CFCs, introduced. Only satellites are able to reliably supply us with comprehensive weather and climate data. We need this data to fill in knowledge gaps and to continue to change our actions accordingly. Or, to take a more specific example, satellites are already helping firefighters to detect and put out forest fires.

So satellites will continue to play a major role?

Absolutely! And not just in climate research. We need a close-knit and well-functioning satellite network to meet the ever-increasing demands in the logistics sector. In order to trace supply chains, for example. Or if we want to see more autonomy in road transport. These are just some of the many aspects that will continue to drive growth in the field of space.

And how are we positioned in Europe?

We’re late to the party. Let us take Ariane 6 as an example, the follow-up programme to Ariane 5, a European heavy-lift space launch vehicle. The new programme is set to be initiated before the end of the year. But the problem is that the technology is already outdated before the project has even been launched. Because Ariane 6 is still a throw-away rocket.

Why are we not quicker off the mark?

I predominantly see two major challenges in Europe. Firstly, there is a lack of courage to try and leapfrog a couple of technology generations ahead. Secondly, we are always simply observing the success of others. Falling into a trap of blindly copying what’s being done elsewhere. But this is too short-sighed. What we need in Europe are commercially driven companies and initiatives that also pursue truly self-supporting business models. It’s not enough to simply hold out for state initiatives and to be dependent on state subsidies.

How will the industry develop moving forward?

It will continue to grow! However, we shouldn’t expect a linear progression to continue on and on in the same direction. The Gartner hype cycle will not stop short of the field of new space. Setbacks and consolidation are to be expected. That is completely normal and has also been observed in other sectors such as the internet economy and fintech. We also can’t forget that start-ups from the new space sector often operate at the limit of what is technically feasible and only address existing markets up to a point. In some cases, solutions are also being developed for markets that are only just emerging. There are huge opportunities for investors here to bet on the right teams and topics at an early stage, but there’s also a risk that the timing isn’t right. For instance, the turnaround in interest rates brought on by inflation has made it more difficult for start-ups and they have to prove at an earlier stage that their business model is viable. The important thing is to not view space as a short-term trend. The Americans and Chinese see space as a new economic sphere to be leveraged, cultivated and safeguarded. They are therefore setting the course by optimising framework conditions for innovative companies, for example. Space travel can thus be regarded as a critical enabling technology. If we don’t want to fall too far behind in Europe, then state institutions and also investors will have to take consistent action.

Many thanks for speaking to us, Christian.

MedTech Pitch Day 2023: Connecting Startups with Industry Leaders, Investors, and Decision-Makers

The MedTech Pitch Day, organised by HTGF, Dräger, B.Braun, Techniker Krankenkasse and the Health Innovation Port, is just around the corner. What can founders expect at the event and why should they definitely apply? We spoke to Anke Cassing, Principal at HTGF, and Jakob Lilienweiss, Investment Analyst at HTGF, to find out.

The MedTech Pitch Day will take place on March 29^th in Berlin. Can you tell us more about the event and what founders can expect?

Anke: The event has developed into a true showcase for innovative start-ups in the medical technology field. Founders can expect the opportunity to connect with potential investors and decision-makers from leading medical technology companies as well as gain expert knowledge in keynotes and workshops.

Jakob: Our goal is to provide a platform for start-ups to network and promote their solutions. In recent years, for instance, we’ve seen a rise of digitalization in the Medtech sector, with many start-ups utilizing modern technologies such as artificial intelligence and machine learning to screen large amounts of medical images and data or combining these with hardware. The MedTech Pitch Day brings this disruption to one table.

Can you tell us about your personal highlights of past MedTech Pitch Day events?

Anke: Last year, we welcomed many innovative start-ups from all over the world and received more than 150 applications for the pitch sessions. I was thrilled by the diversity of cutting-edge technologies presented. One standout of the past editions was Angiolutions, a medical technology company that has developed the first device to treat small aneurysms. You can learn more about the founder’s exciting start-up story in our latest video interview.

How can start-ups apply to present at the event?

Anke: Start-ups can apply by registering on our website by January 31^st and uploading their non-confidential pitch deck. Our expert panel will review the applications.

What types of start-ups are you looking for?

Jakob: We’re looking for innovative start-ups in the Medtech and Healthtech fields.  We want to create an interesting mix between hardware start-ups, but also asset-light solutions.

Do you have any final thoughts for start-ups considering applying?

Anke: The MedTech Pitch Day is not only about the event itself, but also about the network which has been created. It is an excellent opportunity for early-stage start-ups to promote their ideas and assert themselves on the market. We’re excited to see the medical technology for tomorrow that will be presented at this year’s event.

Jakob: Yes, the MedTech Pitch Day is a great opportunity for start-ups to showcase their solutions in front of leading venture capital investors and key players in the Medtech industry. We encourage start-ups to take advantage of this opportunity.

Anke, Jakob, thank you very much for the interview – and if you out there now feel like being a part of #MTPD23, you can apply right here.

2022 – High-Tech Gründerfonds end-of-year review

We’d like to begin this end-of-year review by saying thank you to all those who support us, enable us to do our work and place their trust in us. This particularly applies to the founders, numerous co-investors and shareholders of our portfolio companies as well as our fund investors. This year saw the launch of our fourth fund, HTGF IV, which more than 40 private companies have invested in alongside the Federal Ministry for Economic Affairs and Climate Action and KfW Capital. Among the fund’s investors are successful SMEs, including numerous hidden champions, as well as family offices and large corporations. They all recognise the potential impact that start-ups can have – and the benefits that can arise for both themselves and the start-ups through partnerships and cooperations.

We’re delighted to see this level of trust being placed in High-Tech Gründerfonds and were able to exceed expectations at first closing in June: significantly more than €400 million is available for seed investments in the HTGF IV fund. Final closing will take place at the start of 2023. The fund volume is considerably higher than that of our previous funds. More money is available for the roughly 200 start-ups in which HTGF IV will invest – a positive sign in these uncertain times.

2022 was the second-best year in our history in terms of exits. Good companies clearly remain in demand, despite these challenging circumstances. At HTGF, we have experience in dealing with crises. HTGF was founded at a challenging time back in 2005. Since then, we have experienced crises both great and small, including the 2008/9 financial crisis, the coronavirus pandemic and the present-day situation.

The HTGF portfolio is highly resilient. While our start-ups witnessed a slight dip in fundraising overall compared to the previous year, the funding volume remained at a similar level to 2019 and 2020, which is a good sign.

The entire HTGF team, which has again grown in size considerably this year, played a big part in these results. We are all aware that the present situation is challenging for many people. This will remain the case, as the crises are unlikely to be over soon. The financial climate may remain difficult for young companies, despite there being a lot of capital on the market.

Here at HTGF, we will continue to work hard to exceed the expectations of our portfolio companies and fund investors. This is a goal that unites the whole HTGF team. We will keep making funds available, as was the case this year – a year in which we maintained our investments at a high level and made more than 40 seed investments. We firmly believe that innovation and technology hold the key to solving many challenges.

For founders, the current situation requires them to fully concentrate on their business operations. Effectiveness and efficiency are key. Over 17 years of experience has shown us that successfully run start-ups are able to overcome challenging times; many companies were even founded in such circumstances. It is important that we all make the most of these opportunities.

We wish you a Merry Christmas and look forward to our continued cooperation in 2023!

Alex von Frankenberg, Guido Schlitzer and the entire HTGF team

2022 review and 2023 preview from our investment teams

What opportunities and challenges did we face in 2022? And what trends and technologies can we expect to see next year? Our three investment teams – industrial tech, life sciences & chemistry, and digital tech – reflect on an eventful year and look ahead to 2023.
Find out more.

2022 review and 2023 preview from our investment teams

What opportunities and challenges did we face in 2022? And what trends and technologies can we expect to see next year? Our three investment teams – industrial tech, life sciences & chemistry, and digital tech – reflect on an eventful year and look ahead to 2023.

Industrial tech

The effects of the climate crisis continue to place huge challenges on society. HTGF aims to be part of the solution. Since 2005, we have invested in around 60 climate tech companies and are well-placed with our current portfolio in areas such as energy, the circular economy, batteries and mobility.

An example of a new investment is Variolytics. The company offers measurement technologies and AI for wastewater treatment plants, thus actively helping to reduce greenhouse gas emissions.

Additional challenges such as the shortage of skilled workers, unreliable supply chains and increasing competition are helping to drive the digitalisation of production for many manufacturing companies. Our roughly 35 active industrial tech firms offer solutions for industrial companies from various sectors.

An example is one of our new investments in 2022: Syte, a start-up that offers an AI search engine which analyses the development potential of land.

Elsewhere, deep tech applications are increasingly finding industrial use in areas such as new space, quantum computing and artificial intelligence. Many of our 35 deep tech portfolio companies will achieve major technological milestones in 2023.

An example of a new investment is InCirt, a company that develops microchips which serve as a key technology for future high-speed wireless communication.

Important exits

• Enscape – Enscape develops high-value, real-time rendering and virtual reality software for the architecture, engineering and construction industries. The company has gained tens of thousands of customers worldwide in a short space of time. We have since sold our shares to a private equity fund, which is helping Enscape and other companies in the field of CAD to become category leaders. Our exit was a major commercial success for HTGF, achieving the highest ever multiple on invested capital. 
• FAZUA – FAZUA works on innovations in the field of e-bikes. Many renowned e-bike manufacturers already use FAZUA drive systems. In Porsche, the company was also able to secure a partner for whom the right drive system means everything.
• Arioso – Arioso Systems develops microspeakers for in-ear headphones. These microspeakers are up to ten times smaller than conventional speakers and they are extremely energy-efficient. In Bosch, we are delighted that the company was able to find a partner from our circle of investors.

Life sciences & chemistry

One trend continued to take hold in 2022: agility and resilience are becoming increasingly important for companies seeking to establish themselves in the fields of life sciences and chemicals. These are traits that often distinguish young companies and start-ups from major players and corporations. The start-up culture in the life sciences and chemicals industries is shaped by new ways of thinking, new approaches and new paths. This also applies to Rimasys, a start-up that HTGF initially invested in back in 2017. The company, which was only recently acquired by the AO Foundation, is helping to make surgeon training more realistic using gamification methods. For instance, they stream bone surgeries performed by experts in the field. And doctors throughout the world are able to observe their work via live stream.

Many of our portfolio companies achieved key milestones in 2022. oncgnostics, for instance, developed a testing procedure that makes cervical cancer much easier to diagnose. The product was also recently approved in China.

We’re going to keep up the hard work. Because there’s a lot to work on: infectious diseases, cancer, Alzheimer’s, the further development of RNA, better diagnostics, the improvement of hand hygiene, relieving medical professionals of tiring work, and sustainability in the medical and chemical sectors. These are all challenges that our portfolio companies are actively working on.

Important exits

• c-LEcta – c-LEcta is a leading biotech company specialised in precision fermentation, optimised bioprocessing and biotransformation for the creation of high-value targeted enzymes and ingredients. HTGF has been at the company’s side for over 16 years. 
• Kumovis – Kumovis develops 3D printing technology for the production of implants and medical technology products. The technology enables the production of highly individualised implants while remaining economically viable. 
• Rimasys – Rimasys is an innovator in the field of surgical training.  The Cologne-based company has an impressive track record in this field and will now be able to continue its success story with its new partner.

Digital tech

Three topics were particularly important this year and will continue to dominate in 2023.  

We expect to see a further boost for the field of artificial intelligence. AI applications will continue to make life easier for humans. An example of this is our portfolio company Natif.ai. Thanks to high-performance AI models and a deep OCR technique developed in-house, a wide range of documents can be analysed quickly and precisely, with the relevant data being extracted. 

Edtech, govtech and regtech will also remain relevant fields of growth. The digitalisation of schools and public bodies will continue to gain traction. Our portfolio companies are already assuming a leading role in this development in Europe, especially Sdui in the field of edtech.

And then there’s the field of cyber security: Innovative security solutions are already highly sought after. This will remain the case next year, given the diverse range of security threats throughout the world. This has also been underlined by the level of investment in our portfolio companies VMRay, Code Intelligence and Tangany. They all completed successful growth rounds. Start-ups from this sector performed well, with multiples only suffering slightly.

An example of a success story in 2022: Our portfolio company Code Intelligence partnered with Google to secure open-source components written in the most-used programming language, Java. While onboarding the most-used maven packages relevant to enterprise software into the testing platform, over 200 vulnerabilities have been prevented before landing in official releases.

Important exits/IPOs

• Quentic – With its modular software-as-a-service solution, Quentic simplifies management and reporting in the fields of health, safety, environment and quality (HSEQ) management, and environmental, social and governance (ESG). The company has now found a strong partner in AMCS. HTGF’s shared history with Quentic is a special one: HTGF has been at the company’s side for over 14 years of development.
• Rebelle – Rebelle is a pioneer in the field of the circular economy. This year, the successful online marketplace for second-hand designer fashion went public. Rebelle is the first IPO to have a Nasdaq Green Equity Designation within the global Nasdaq system. This was also HTGF’s first “green IPO”, in other words a stock market launch with a focus on sustainability.
• IPlytic – It is great to see that the IPlytics GmbH, with its Patent Analytics software, was acquired by the RELX Group and can expand further under the roof of its subsidiary LexisNexis in the future. As an early backer of IPlytics, it was impressive to track how the software convinced customers around the world, straight out of Berlin.

What have you learnt? Episode 4 with Prashanth Makaram of Crocus Labs

What have you learnt? This is a question we’re putting to company founders from our portfolio. Because if you found a start-up, run a company, make investments or work in management, you are learning something new every single day. You also have to deal with new situations. And continue to develop new skills. To cover the latter aspect, we expanded the HTGF Academy this year to offer a comprehensive programme for company founders. And because we firmly believe in the power of peer-to-peer learning, our newsletter now includes the column: What have you learnt? Once a month, company founders from our portfolio share tips and advice in this column. Prashanth Makaram, Co-Founder and CEO of Crocus Labs, joins us this time round.

Crocus Labs is developing revolutionary ultra-high efficiency smart lighting solutions for indoor farming. The lighting technology pioneers combine proprietary diodes with smart sensors and software to help growers achieve greater profitability.

What was your last major learning that helped your own personal development?

Prashanth: The last major learning has been to stop being afraid of conflict situations but rather to embrace them. In order to have a healthy and functional personal and business relationship, there is a need to argue (fairly) and come up with a solution that both parties can live with. This also means addressing critical topics early on instead of putting them off until later. 

What will you take with you from your start-up journey so far for the rest of your life?

Prashanth : A couple of things. Along your journey there are people (typically ex-founders) who go above and beyond to support you and your company at every stage although they don’t have to. I hope to also help others out for the rest of my life. 
The second thing is to keep persisting when faced with a sea of rejections and when met with challenges that go beyond your expectations. Once you realise that either it doesn’t matter in the long run or that no level of planning can avoid certain outcomes, you just have to make the best of the situation without compromising your mental health or happiness.

When you meet other founders today: What advice would you want to share?

Prashanth: Having the right team including co-founders with complementary skills that you can trust is the most important thing. Everything else can be figured out.  Establishing a start-up is tough, especially if it’s a hardware start-up. You have to be tenacious in pursuing your goal. 

How important is learning for founders in general?

Prashanth: As a startup founder, learning is a critical aspect of your life. As you are constantly learning and adapting your strategy to new information and situations. If you don’t learn, you won’t grow and neither will your company. 

What have you learnt? Episode 3 with Lymphaticas Valentina Triacca

What have you learnt? This is a question we’re putting to company founders from our portfolio. Because if you found a start-up, run a company, make investments or work in management, you are learning something new every single day. You also have to deal with new situations. And continue to develop new skills. To cover the latter aspect, we expanded the HTGF Academy this year to offer a comprehensive programme for company founders. And because we firmly believe in the power of peer-to-peer learning, our newsletter now includes the column: What have you learnt? Once a month, company founders from our portfolio share tips and advice in this column. Valentina Triacca, Co-Founder and COO of Lymphatica, joins us this time round.

Lymphatica Medtech develops medical systems for the treatment of lymphatic diseases. The first product, LymphoDRAIN, is the world’s first active lymphatic bypass for the treatment of chronic lymphedema, a debilitating disease that affects millions of people worldwide.

What was your last major learning that helped you grow personally?

Step back from time to time and look at things with a fresh mind. It sounds simple and obvious, but it is very difficult to detach yourself mentally from your start-up, even for a few days: turn off email alerts, take time for yourself and you’ll be a better person at home and at work.

What do you take away from your startup journey so far for the rest of your life?

The privilege of having a job that I love, and the pride of working towards a noble goal shared with a great team. During my start-up journey, I learned how to handle the stress and the unknowns, and to be able to fully focus on the bigger picture.

How important is learning for founders in general?

As a founder with a scientific background, you often lack knowledge in everyday administrative tasks and people management. You have to be ready to learn something new all the time and to quickly select the right resources to learn from.

Built on a firm belief: The greentech node.energy

“To achieve success, you need perseverance.” It’s a phrase you might hear in the world of professional sport, but it’s also true for entrepreneurs, says Matthias Karger. The former professional volleyball player is now Co-Founder and Managing Director of HTGF portfolio company node.energy. The greentech’s software-as-a-service solution helps companies with their own wind turbines and solar panels to keep on top of their administrative duties and get the most out of their power generation systems. The young company has just concluded a Series A financing round, securing €7 million in funding. A third of all wind turbines in Germany already benefit from node.energy’s solution. But for Matthias and his team, that figure can go even higher.

Congratulations on completing your Series A financing round, Matthias!

Matthias: Thank you very much! For us it was really important to not just secure fresh capital but, above all, to get on board partners who bring strategically important skills to the table. And we succeeded in gaining some great investors in all important areas for our company, like real estate, sustainability, software and energy. It’s an important mix to have, and it’s a huge success for our organisation.

What do you plan to do with the fresh capital?

Matthias: We remain clearly committed to our mission of developing software to radically simplify renewable-energy planning and management, and thus playing our part in making the energy transition happen. Our target group includes professional operators of renewable energy systems, as well as those looking to follow that path. And it’s in the second part of that sentence in particular where you’ll find such an incredible amount of potential. You still don’t see anywhere near enough commercial and industrial firms with solar panels on the roofs of their buildings. Our software solution makes it easier to adopt these business models. We want to show how continuous operation is something that’s easy to handle. It’s a way of reducing CO₂ emissions while earning money at the same time.

How does that work – doing something good for the environment while making money?

Matthias: A few years ago, some may have felt the two things did not go together. But for our team, we stopped seeing a contradiction a very long time ago. The start of the energy crisis a few months ago provided final proof, if any was needed, that renewable energies are indeed the most favourable form of energy – not just in terms of costs, but also from a geopolitical point of view. We can all see just how much more renewable energy we do in fact need.

So how does the software work exactly?

Matthias: To operate solar panels and wind turbines, you need to meet extremely high bureaucratic requirements. This often involves resorting to Excel and DIY solutions. Our software automates and simplifies the requisite processes for operation. The software collects all relevant data and sets up the configuration in the interface: What systems do I have? What am I planning to do in detail? Further information, such as on the relevant grid operators and fees, is automatically added. The software then uses this information to determine which obligations will need to be fulfilled, like notification obligations towards grid operators, the authorities and the like. By accessing the respective energy data from electricity or gas metres via an interface, the software is able to automatically prepare the notification documents. Our system offers such a wide range of functions that it can even handle the processing and invoicing of solar power supplied to individual building occupants.

Who uses your product?

Matthias: Our focus is on professional operators of energy systems, as well as those looking to follow that path, such as real-estate companies. For the most part, staff at these types of companies plan and operate wind turbines or large-scale solar-energy systems. But there is in fact a broad spectrum of clients, ranging from DHL, Trumpf and Deutsche Bahn to small energy cooperatives looking to make their village energy self-sufficient. They’re all banking on our system.

The electricity market is already becoming decentralised.

Matthias: It is indeed, and that’s what’s exciting about power generation in tomorrow’s world: It’s decentralised. You no longer have a small number of large generation firms feeding electricity into the grid. New stakeholders are emerging: Private individuals, cooperatives, and industrial and commercial firms. And of course having these different types of players generating power gives rise to an increase in administrative requirements.

What would you say is currently the biggest challenge in expanding renewables?

Matthias: The approval process, without a shadow of a doubt. I was recently at a conference in Hamburg: It currently takes five years on average for a wind turbine to go through the approval process in Germany. That’s too long. But, don’t get me wrong, the people working at the authorities aren’t the ones to blame – the official bodies are quite simply understaffed. When you think about what we’re in the process of doing: We’re not just overhauling the energy system of one of the world’s biggest industrial nations – we’re doing so in a short space of time.

Before you became an entrepreneur, you were a professional volleyball and beach volleyball player. Did your sports career teach you anything that’s helped you as an entrepreneur?

Matthias: To achieve success, you need perseverance. To a certain extent, that’s also true when it comes to transitioning to renewables. As entrepreneurs, we were quick to spot the untapped potential in decentralised power generation. In Germany, it’s not the technical implementation that’s the problem, it’s the complexity of the regulatory framework. We need easier access. We’re firm believers in what we do. We believe in renewable energies meeting our power needs. And, for the sake of future generations, that can’t come soon enough.

What have you learnt? Episode 2 with finmarie’s Rica Klitzke

What have you learnt? This is a question we’re putting to company founders from our portfolio. Because if you found a start-up, run a company, make investments or work in management, you are learning something new every single day. You also have to deal with new situations. And continue to develop new skills. To cover the latter aspect, we expanded the HTGF Academy this year to offer a comprehensive programme for company founders. And because we firmly believe in the power of peer-to-peer learning, our newsletter now includes the column: What have you learnt? Once a month, company founders from our portfolio share tips and advice in this column. Rica Klitzke, Co-Founder and CMO of finmarie, joins us this time round.

Finmarie’s mission is to help women become more financially independent. Founded in Berlin in 2018, the start-up offers conventional financial coaching as well as a range of robo-advisors and an e-learning community. On top of that, it also has various other offerings to promote financial education.

Through their idea, the founders have been able to help lots of women improve their financial knowledge – and they themselves have also learned a great deal in the process. Rica Klitzke, Co-Founder and CMO of finmarie, tells us all about it in this latest episode of “What have you learnt?”

What have you learnt, Rica?

‘Everything is figureoutable’. Don’t wait until you’re feeling 100 percent ready to take on a challenge or you’ve completely understood everything – the truth of the matter is hardly anybody does. Instead, you should start gaining experience and learning, and in the process get better and actively seek support from your network.

What have you learnt from the process of founding your company that has stuck with you? 

At 37 I’m already among the older generation of founders, and I wasn’t sure whether I still had the courage to take that step at that point in my life. But it’s never too late to learn new things and pursue something that you feel passionate about. In our late thirties we still have over half of our careers ahead of us. That’s too much to just take your foot off the gas.

What advice would you give to other company founders?  

Firstly, learn how to deal with uncertainty; secondly, build up your network early; and thirdly, make sure you keep going!

How important is the notion of learning in general for founders?  

It’s absolutely vital. As an entrepreneur, you face new challenges on a daily basis. You encounter lots of topics for the first time and don’t have a boss to tell you what to do. Continuous personal development is hugely important.

In the next DeepDive newsletter, which will come out in early November, Valentina Triacca will tell us about what she has learnt. Valentina is Co-Founder & COO of the medtech Lymphatica.

Episode 1 : What have you learnt? With Miriam Mertens and Peter Goeke from DeepSkill

What have you learnt? This is a question we’re putting to company founders from our portfolio. Because if you found a start-up, run a company, make investments or work in management, you are learning something new every single day. You also have to deal with new situations. And continue to develop new skills. To cover the latter aspect, we expanded the HTGF Academy this year to offer a comprehensive programme for company founders and others. And because we firmly believe in the power of peer-to-peer learning, this newsletter sees the launch of our new column: What have you learnt? Once a month, company founders from our portfolio will be offering tips and advice. The first to do so are Miriam Mertens and Peter Goeke from DeepSkill.

DeepSkill only recently became part of the HTGF family. The Cologne-based start-up obtained seven-figure pre-seed funding, with High-Tech Gründerfonds among the investors.

DeepSkill is the EdTech-platform for digital people development. Founded by Miriam Mertens and Peter Goeke, the company helps employees develop strong deep skills through personalized learning and coaching programs with custom-fit coaches, formats and content. With their help, emotional skills will be omnipresent in organizations in the future and enable them to be more productive, sustainable and human.

 What have you learnt, Miriam and Peter?

Miriam: The biggest thing I learnt most recently was to make sure to take break – even during stressful periods. You have to give yourself space both mentally and physically so that you can gather the energy you need to achieve what you are planning to do. This will also help you appreciate what you have achieved all the more. 

Peter: The thing I learnt most recently was during the financing round just now. As a company founder, you have to sometimes take a step back from the operational side of things in order to concentrate on raising funds. It made me realise just how essential it is to have a team and that I can completely rely on the DeepSkill team. 

What have you learnt from the process of founding your company that has stuck with you?

Miriam: Founding a company is not always easy. You learn something new from each success and failure, and this is always associated with emotions that you cannot allow yourself to get too caught up in. Although successes should obviously be celebrated. 

 Peter: It is important to have the courage to keep reinventing yourself. This is something I consistently did and it ultimately led me to founding DeepSkill together with Miriam. Looking back, every stage of my career has led me to this point – it’s a bit like connecting the dots.  .  

What advice would you give to other company founders?  

Miriam: Make sure to take criticism on board. It often hurts to hear negative feedback about your “baby” and we all have a tendency to either push it to one side or sugarcoat it. But if you find yourself often receiving the same criticism, there’s probably an important degree of truth in there.

Peter: Come up with an idea that is meaningful and something that you are passionate about. This will give you the energy you need to get your start-up going. Because founding a company is a marathon not a sprint.

How important is the notion of learning in general for founders?   

Miriam: I think it applies to everyone that you’re never done learning. Particularly as a start-up, you should be open to change and new things. Only those who develop and move with the times will be able to pursue their objectives in the long term.  

Peter: Founding a company and learning go hand in hand – you are always faced with new challenges. It’s a steep learning curve for company founders throughout all stages of a company’s development. Once the company has been launched, processes need to be put in place, followed by process optimisation and internationalisation etc. As a founder, you are having to constantly perform new roles and further your own development.

In the next DeepDive newsletter, which will be released at the start of October, Rica Klitzke will discuss what she was learnt as the co-founder and CMO of financial start-up finmarie.

At the HTGF Academy, you can look forward to the “Liquidity management – an important success factor in every phase of a company’s life” websession with the deutsche Bank on 28 September. On 04 Oktober , we’ll be hosting a Websession with KAUFMANN / LANGHANS on the topic of “Convincing rationally, inspiring emotionally – what matters in a good equity story”. You can find a overview of all events here.

Our mission? To help more people!

Cervical cancer is the most common type of cancer of the female genital organs. In Germany, there are more than 4,600 new cases of women affected by this tumour each year, according to the German Cancer Society (DKG). Conventional testing procedures are very unreliable. The team at HTGF portfolio company oncgnostics has therefore developed GynTect, a procedure that considerably improves the diagnosis of cervical cancer. The product was recently also approved in China – an important milestone, as founders Dr. Alfred Hansel (biologist and CEO) and Dr. Martina Schmitz (biochemist and CSO) explain in this interview.

Congratulations! Your testing procedure is now also available on the Chinese market. How did you achieve this success?

Dr. Alfred Hansel: You’d think that this would be a very protracted process. In 2016, we approached cooperation partners in China for the first time. We were on the lookout for licensees that would produce and distribute the product in China. And then in 2017, we found a really strong partner really quickly – GeneoDx, a subsidiary of Sinopharm Group.

And was the cooperation a good one?

Dr. Martina Schmitz: It was very good. Professional and collaborative. GeneoDx began a large-scale study with patients in China back in 2018. As is always the case with medical approval processes, a number of changes and improvements were made along the way. And the end result was fantastic. The testing procedure received final approval in China on 4 August.

Dr. Alfred Hansel: It’s also worth pointing out that the approval process in China is much more complex than CE certification here in Europe; it is more akin to obtaining approval from the U.S. Food and Drug Administration.

And do you now have the US in your sights?

Dr. Martina Schmitz: We can definitely make good use of the results to speed up the approval process when we look to take that step. But for now, we’re happy that we’ve launched our first product in China – ten years after founding the company. That’s a major success.

Is production in China up and running?

Dr. Martina Schmitz: Yes, it’s in full swing. There’s a production site in China that is able to meet our high demands. On 1 September, the product was officially presented by our partner in China.

What does this success mean for you?

Dr. Alfred Hansel: It’s obviously a big step for us. The Chinese healthcare system is much more flexible when it comes to such innovations and it takes much less time than here for you to recover your costs. We are very optimistic that we will be able to celebrate major successes very quickly once our testing procedure becomes established on the Chinese market. We will be able to offer more women better and more accurate testing within a short space of time.

What makes your testing procedure special?

Dr. Martina Schmitz: The conventional testing method can lead to an immense feeling of uncertainty that young women then have to live with. Cervical cancer can be caused by human papillomavirus (HPV) infections. But around 90 percent of all women with an HPV infection actually have nothing to worry about. Our test offers a much more accurate diagnosis and therefore puts women’s minds at rest as to whether or not they have the disease.

How have tests previously been conducted?

Dr. Alfred Hansel: With the aid of a swab that is then examined under the microscope. However, diagnoses are very prone to error with microscopic tests. If something conspicuous is found, this is typically followed by subsequent tests, which can be a major psychological burden for women. The physical interventions are also not without risk. After operations to remove any abnormalities, the risk of a miscarriage increases – particularly if a lot of tissue is removed from the cervix.

And your technology can help in this respect?

Dr. Alfred Hansel: Yes. With our diagnosis technology, we focus not on the virus, but on the genome, the DNA and the cells. No further interventions are required, as we can use the same swab that has already been taken. We subsequently process this sample in the laboratory and examine whether certain modifications are visible on the DNA, i.e. epigenetic information. If we’re then able to determine a change, this means that a cancerous cell is developing within the patient; if we cannot determine a change, this means that the patient has an HPV infection but is not currently developing or suffering from cervical cancer.

We work according to the principle of a PCR test, which everyone is now aware of through the coronavirus pandemic. The innovation with this procedure is that we can reliably detect DNA methylation, in other words the change in the genome. We are thus able to confirm diagnoses in a timely manner or, better still, correct misdiagnoses.

How did you come upon this idea?

Dr. Alfred Hansel: The initial idea came about in 2008 at the gynaecological hospital in Jena. In Prof. Dr. Matthias Dürst’s laboratory there, he had started working on the basis of GynTect, epigenetic changes in the context of cervical cancer. We took the decision early on to use these findings for diagnoses. We first participated in the Federal Ministry for Economic Affairs and Climate Action’s EXIST Transfer of Research funding programme, which aims to encourage the founding of companies at universities and non-university research institutions. We then founded our company in 2012, with High-Tech Gründerfonds coming on board as a seed investor.

Dr. Martina Schmitz: We soon realised that for High-Tech Gründerfonds, the focus is not just on capital, but also expertise. We have continually benefited from them since the beginning of our cooperation. Particularly when we were starting out, as we, the company’s founders, come from the world of science. HTGF helped us to add business expertise to our team, putting us in contact with Peter Haug who now oversees our business development and licensing business. The team at HTGF also offers support on legal matters. It’s not always easy to get a patent released by the university. HTGF was a huge support in this matter.

And what are your future plans?

Dr. Martina Schmitz: Our technology has the potential for applications beyond cervical cancer. It can also detect other types of cancer. Head and neck tumours are just a few examples. The big challenge is the rate of recurrence with these diseases. Through a simplified diagnostic process that uses a saliva sample, we might have the opportunity to identify possible relapses of cancer at an earlier stage. We are currently conducting intensive research in this regard – and are also working on tests for other cancers. We hope to be able to help many more people with our technology.