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.

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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.

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?”

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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.

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 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.

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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 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.

“A strong signal, especially for start-ups”

High-Tech Gründerfonds is launching its fourth fund, HTGF IV, which has secured over €400 million in commitments at first closing. That makes it the seed investor’s biggest fund to date. Dr. Robert Habeck, Germany’s Federal Minister for Economic Affairs and Climate Action, recently announced the first closing of the fund at the HTGF Family Day. In this interview, HTGF Managing Directors Alex von Frankenberg and Guido Schlitzer talk about HTGF’s successful fundraising efforts and explore the prospects that start-ups face.

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Alex, Guido, another Family Day in Bonn at long last. It was about time, right?

Alex: I’ve done the maths: Exactly 1,112 days had passed between the last Family Day before Covid and Family Day 2022. It was absolutely fantastic to be able to meet up again. And with some 1,000 people in attendance, we once again had some great exchanges.

Guido: There was a really good atmosphere. People felt relaxed. We were delighted to be able to bring the HTGF family back together. And that family includes fund investors, network partners, venture capital colleagues, and current portfolio companies, as well as entrepreneurs who already have an exit behind them.

Before going into what start-ups can expect from the new fund, let’s first take a quick look back at the fundraising. The fund’s investors include the German Ministry for Economic Affairs and Climate Action and KfW Capital, along with 40 companies. Second closing will take place before the end of the year. Who’s on board?

Guido: It’s mainly the “Mittelstand”, so medium-sized companies, as well as a number of big companies and family offices.

Alex: Almost every industry is represented, and we’re really pleased to see such a wide range of sectors on board: software, mechanical engineering, medical technology, pharmaceuticals, chemicals, banking and much more. The insurance industry is the only one missing.

So does that mean an insurer could still register as a fund investor?

Alex: They certainly can, although second closing will take place before the end of the year. The high level of demand and interest, especially from the “Mittelstand”, surpassed our expectations. We’ve got experienced firms on board – the oldest one was formed way back in 1756. The youngest fund investor was established in 2008, which actually makes it younger than HTGF itself.

Guido: We also see ourselves as a platform that connects start-ups with experienced companies. And we know that this strengthens the innovation capabilities of all sides in the long term. We thus hope to make an important contribution to bolstering both Germany and Europe as business hubs.

Since you talked about expectations being exceeded: You had €319.5 million in your third fund after second closing. Whereas this time you’ve already surpassed €400 million in commitments. Is that what you were expecting?

Alex: We had been targeting such an outcome. The feedback we received was very good. One of our fund investors came on board straight after we approached them, the very same day, while another had been watching us for 12 years and then decided that now was the time to get involved. Both very pleasing, just like the great deal of interest overall. It illustrates the confidence that others have in our work.

What was special about the fundraising?

Alex: This time we set about the fundraising on a very broad footing. The whole team was involved. So especially at the start, we invested a lot of time in enabling and supporting all members of the team. This great achievement is down to the entire HTGF team.

Guido: There came a point where we had the momentum, and things then just moved forward on their own. The final phase was obviously full on. A lot of interest is shown during fundraising, but the final commitments and documents don’t come in until the last five weeks. And then you’ve got to clear up any final questions. But then it was clear that things would work out.

What can start-ups expect from the fourth fund?

Guido: We will continue to invest in all important areas – digital tech, industrial tech, life sciences and chemicals. A growing number of complex, highly innovative topics are emerging, especially at universities and research institutions – whether it be in the fields of quantum computing, fintech, blockchain, pharmaceuticals or deeptech, to name but a few. I’m sure we’ll see some additional focal areas in these fields.

The economy currently finds itself in a challenging environment: Inflation, rising interest rates, stock market correction, especially in tech, and on top of that geopolitical issues and war. And despite all that, HTGF is continuing to invest, right?

Alex: You bet. The overall situation has changed completely over the past six months. The standard reflex from purely private investors is usually to scale back investment. But not us – we will keep investing in around 40 start-ups per year. HTGF was founded after the dot-com bubble burst, and we invested. We continued to invest after the financial crisis, in the late noughties, and also during Covid. HTGF is a stable anchor.

Guido: Nobody knows how things will pan out. At the moment it doesn’t look like we’ll see a crash like the one after the dot-com bubble burst. Today, we’re in a completely different place in the venture capital arena and in the start-up ecosystem. Our fundraising is a good sign: We’ve got more money available for start-ups.

What do you mean exactly?

Guido: To date, we’ve been investing around €630,000 per start-up on average in the first step. With HTGV IV we can certainly up that average figure, to between €800,000 and €1 million. So far, we’ve been able to invest up to €3 million per start-up, but moving forward we’ll be able to push that up to €5 million in isolated cases. The highly successful fundraising simply gives us more room for manoeuvre.

What’s your most important message for anyone considering founding a start-up at this particular point in time?

Alex: Entrepreneurs with conviction are not put off by any crises. Lots of successful companies were founded during difficult periods: SAP and Microsoft after the oil crisis in the 1970s, Facebook in the noughties after the dot-com boom had come to an end. That’s why our message is as follows: Don’t be put off – start a company anyway. We’ll be waiting in the wings as a reliable investor and partner.

GWA Hygiene and Dräger: From collaboration to investment

How does a company specialized in medical and safety technology with a more than 130-year history end up getting together with a six-year-old start-up? Common goals, collaboration on an equal footing and good partners are key aspects in this regard. That is at least according to Jens Altmann, President Business Unit Data Business at Dräger, and Tobias Gebhardt, CEO at GWA Hygiene. Dräger, a global corporation, recently invested in High-Tech Gründerfonds (HTGF) portfolio company GWA Hygiene. In this interview, Altmann and Gebhardt speak about their new-found cooperation, the challenge of hygiene in the day-to-day running of hospitals, and their collaboration with HTGF.

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Mr Gebhardt, can you give us a brief insight into the work of your start-up GWA Hygiene?

Tobias Gebhardt: The issue of hygiene in hospitals has not yet been brought into the digital age in many places. Hygiene teams often spend half their time collecting and evaluating data by hand, despite not being trained statisticians. We are helping to change this situation by fitting sensors to hand sanitiser dispensers, thus creating smart hygiene dispensers. We can ascertain how often and regularly hygiene stations are being used by staff and how much sanitiser is being dispensed. We then aggregate all this data and assess where there is potential for improvement in terms of hand hygiene. This helps to ensure that everyone involved is keenly aware of the issue of hygiene.

How did your companies find each other?

Tobias Gebhardt: I spoke to a hospital hygiene specialist about the high risk of infection among premature babies; hygiene plays a particularly important role at incubator stations for newborns. As a HTGF portfolio company, we were invited to the High-Tech Partnering Conference where we got talking to Dräger very specifically about this problem. A few weeks later, we had our first meeting with Dräger in Lübeck. This resulted in an initial project being established at the start of 2021; since then a number of additional issues have been targeted.

So HTGF played a pivotal role. What added benefits do you gain from your collaboration with High-Tech Gründerfonds?

Tobias Gebhardt: Above all, credibility. If we just blindly sent out cold emails to large corporates, then the likelihood of us being listened to would be greatly reduced.

Jens Altmann: HTGF’s network is a massive help. HTGF has an incredible deal funnel. That helps companies like ours to gain impetus and ideas. Some fantastic projects have been established, such as our investment in GWA Hygiene.

How did you come to hear about the start-up, Mr Altmann? You obviously didn’t know about the company from day one of the collaboration.

Jens Altmann: That’s right. But we started to hear about the capabilities of GWA Hygiene. Last year someone came up to me and said: “Take a look at this company – they’re a cool team.” Shortly afterwards I was in the car on the way to Stralsund to meet GWA Hygiene. We hit it off straight away.

Right from day one?

Yes, I spent almost the whole day there. We discussed a great deal and developed many project ideas together. We were very much on the same wavelength. And then I headed back to Lübeck with all these ideas in my head. From my car I called our mergers and acquisitions team and said that we absolutely had to do something with GWA Hygiene.

How did you reach a decision to invest in GWA Hygiene?

Jens Altmann: It is really important for us to expand our knowledge and technology platform in the long term and to gain fresh impetus. I was always involved in very in-depth discussions with GWA Hygiene – right from my very first meeting. We see great synergies; together, the two companies offer all the right ingredients to create something new. We want to trace and digitalise chains of infection, while also automating the process. These are the firm foundations of our collaboration.

And what was your experience of the process, Mr Gebhardt?

Tobias Gebhardt: I found it to be very open, very transparent. We never felt like we had to plead, ask for money or worry that everything will hopefully be ok. We collaborate very much on an equal footing. For us, Dräger’s investment is a huge step forward; ultimately it’s the first strategic investor we now have on board. But what makes it feel extremely good is that Dräger has an exceptionally good technological understanding in our field.

Beyond the technological fit, would you say that culture is another very important aspect?

Jens Altmann: It is, of course, ultimately people that also drive developments and support cooperation. If everyone’s pulling in the same direction, then you can achieve a great deal. But if the fit isn’t quite right, then it doesn’t matter how many excellent capabilities you have – it just won’t work. The intensive exchange between the companies in terms of digitalisation is really important. And also cooperation – this only works on an equal footing.

A strong call for entrepreneurship

Think about your business from the perspective of the customer. Make sure you do not become arrogant. These two key tips to scaling companies come from someone who knows what he’s talking about. Prof. Dr. Dr. h.c. mult. Hermann Simon is one of the most experienced economic experts and advisers in Germany. He is also a professor emeritus who has taught at some of the most prestigious universities. In 1985, he founded the consultancy firm Simon-Kucher & Partners. Prof. Simon is the author of more than 40 books, which have been translated into 30 languages. He opens up about his story in his autobiography “Many Worlds, One Life: A Remarkable Journey from Farmhouse to the Global Stage”. In this interview, Prof. Simon talks about why he believes the German economy is highly innovative, and shares his take on the start-up scene in Germany. He also issues a strong call for people to show more entrepreneurial ambition. 

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Prof. Simon, thank your for taking the time to speak to us. Let’s dive right in with the first question. How innovative is the German economy?

The German economy is very innovative on the whole. However, it doesn’t seem that way from the public’s perspective, partly because most innovations in Germany are not being seen. We don’t have any strong consumer goods brands like Procter & Gamble, Coca-Cola, Starbucks or McDonald’s; instead we are more present in the industrial goods sector. Cars are the exception here, although these are just machines that are sold to consumers at random. And this is something that is also reflected in the digital economy. We are much stronger when it comes to digital processes and products for industry than we are in the field of digital consumer goods.

Is that a disadvantage?

In terms of trade in the B2B sector, not really. A purchasing agent at an industrial company will ultimately know the market and who the best providers are. But when it comes to skilled workers and the next generation, it’s a big problem that young developers don’t know about our companies. Another challenge relates to raising capital. Chinese and American hidden champions in the digital sphere go to market at a very early stage and raise huge sums, which they then invest in growth. In contrast, Germany companies tend to remain family businesses, finance themselves through cash flows and therefore fall behind when it comes to expansion and investment.

Can it help companies to work more closely with start-ups – also as a means of strengthening their own research and development?

Collaboration built on trust can offer opportunities. It doesn’t necessarily work for everyone; it’s not something that applies as a general rule. For instance, many companies intentionally keep their research in house and are not keen on sharing their know-how. However, there are many other companies – such as traditional machine manufacturers – that lack in-house expertise when it comes to certain technological matters like artificial intelligence. In such instances, it can really make sense to cooperate with young, innovative companies. Indeed, it can generally be helpful to surround yourself with young people. I’m now over 70 and have amassed a great deal of experience; but my days of being a real innovator are behind me. Young people are essential for further development and innovation.

What’s your assessment of the start-up scene in Germany?

The start-up scene has gotten much better. I think the critical issue is no longer the number of start-ups around, but scaling. It’s a question of how you can turn a five-person start-up into one that employs 500 or 1,000 people.
This also has a lot to do with financing. I recently read an article about a start-up that researches rocket engines. They need €100 million for their ongoing development work. Unthinkable sums in Germany.

How can we ensure that German-made innovations also make a lasting contribution to value creation here in Germany?

That is indeed a major challenge, but it isn’t a new problem. I said 30 years ago that if our companies were as good at marketing as they are at research and development, then they could generate much higher revenues. One of the reasons for this is to do with education. When I was at MIT for my postdoc, I learnt that most young engineers there also undertake an MBA. They study business. This is something that would really benefit many of our scientists and engineers. But the good news is that our younger generation is now adopting a more entrepreneurial way of thinking. This is a really great development.

How can a company be scaled properly?

There are two really important points here. The first is to define your own business from the perspective of the customer. Only when I know what my customers will need in future can I develop in response to these requirements. The second point is to make sure you do not become arrogant. Success is the worst enemy of innovation. I don’t think that German hidden champions are too arrogant. But I’ve met many international companies in my time who have been adversely affected by arrogance. There aren’t too many of them around any more.

Quantum technology at the High-Tech Partnering Conference: Experience new opportunities  

Many experts believe that quantum technologies will take digitalisation to a whole new level. These technologies are set to unlock more powerful measurement tools than ever before, enhance communication security and support logistics processes – and solve previously unsolvable problems with the help of their vast computing power. But what is the technology already capable of? How can it be leveraged by industry? What are its initial applications? And where do start-ups, the research sector and companies currently stand in Germany? In this interview, we spoke to Johannes Verst, CEO of the Quantum Business Network (QBN), and Christian Ziach, Senior Investment Manager at High-Tech Gründerfonds, to find out.

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Are there any other possible applications aside from the calculation of complex computations?

Johannes: You bet! Take quantum sensors, for instance. Ultra-sensitive quantum sensors are set to be utilised in the fields of mobility, energy, geology and the IoT, as well as in healthcare. They can be used in brain-computer interfaces to detect and research diseases such as dementia, as well as to improve cancer screening and make autonomous cars safer.

Christian: They can also be used in the field of communication. Today, we live in a highly connected world, with various types of data – including sensitive information – needing to be shared in real time. Quantum communication systems will drive a step change in this respect thanks to their encryption and decryption technology.

Johannes, you’re CEO of the Quantum Business Network. Can you tell us what the network does?

Johannes: QBN’s goal is to build a quantum industry in Europe as part of a collaborative approach. Our members include established companies, start-ups, research institutes and universities along the entire value chain, as well as ministries and public bodies. We identify the latest trends and developments in R&D and business, work on joint execution, initiate collaborations and give this field as a whole more visibility. But we also provide our members with practical support, offering assistance with business development and helping to find investors, for instance.

Where do German companies stand?

Johannes: Large-scale companies do indeed have experts that are working on the topic, although the technology is still in its infancy. As a result, companies often don’t give the topic the attention that I feel it deserves. But I’m pleased to see that interest is growing, and we now have an increasing number of SMEs reaching out to us.

Christian: A lot of managers are still busy overseeing the fundamental digitalisation of their company. They are often completely unaware that quantum technologies will unlock entirely new possibilities that will also need to be addressed. Aside from learning about the topic, it’s also a question of having the necessary capacities and expertise within the company.

Christian, what is HTGF aiming to achieve with its investments in the field of quantum technology?

Christian: As a seed investor, we finance promising business models that shape the ecosystem. So this also extends to start-ups that provide infrastructure for quantum technology. I’m delighted that our portfolio company kiutra will be joining us at the HTPC. The start-up develops magnetic cooling systems that enable industrial quantum technology applications in the first place. I’ve already mentioned HQS Quantum Simulations, which will also be attending the HTPC. The start-up provides software that material scientists in the chemical sector and in the scientific community can utilise to simulate quantum systems. HQS is working on quantum-level models of materials and their molecular properties, and thus supports researchers. Quantum technologies are also giving rise to a whole new industry. In addition, established companies will also need to create innovative, superior products. In Germany and Europe alike, we urgently need to become competitive in this field and drive innovation. A quick glance towards China and the United States shows just how much research and work is being invested in this field.

What other insights can HTPC attendees expect to gain during your deep dive talk?

Johannes: We’ll showcase technologies and illustrate the possibilities they offer. Christian has already mentioned two start-ups that will take part in our quantum deep dive discussion. I’m also looking forward to being joined by Quantum Brilliance, which is also a QBN member. The company utilises nitrogen-vacancy centres in diamonds to build quantum computers. The systems can work at room temperature and can later be installed in autonomous vehicles, for instance.

Christian: The HTPC has always been a platform of knowledge for exploring high-tech solutions and innovations. The deep dive talk on quantum technology is a special offering within this platform. We want to make it an easily accessible topic for Germany’s medium-sized companies in particular, as well as for corporations, and to connect them with the relevant network partners. Attendees will gain a clear picture of this new field of technology, especially in terms of the current level of knowledge and potential applications in industry.

The new HTGF Academy: “Knowledge transfer shouldn’t just happen by chance”

Since 2019, High-Tech Gründerfonds (HTGF) has offered a broad spectrum of knowledge to its portfolio companies through the HTGF Academy. The platform is now set to be systematically expanded, with fund investors, entrepreneurs outside the HTGF portfolio and other members of the start-up ecosystem now also benefiting from the seed investor’s nearly 17 years of experience. During that time, HTGF has completed more than 650 seed investments and almost 2,700 transactions. In this interview, Alex von Frankenberg, Managing Director of HTGF, and Claudia Raber, Partner Relationship Management at HTGF, talk about the new knowledge platform and explain why it’s important to continue sharing experiences.

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Alex von Frankenberg: And we’ve made a great start with this year’s programme. In January, we held an event on the subject of internationalisation. And we’re showing our portfolio companies the not-so-easy route to the stock exchange. The events were so well received that we’ve now decided to systematically expand HTGF’s knowledge sharing platforms and to also make them available for other groups such as our fund investors.

Claudia Raber: Among the various stakeholders in the start-up sector, we’re seeing a major need to obtain knowledge and to share exchanges with others in the network. HTGF has been around since 2005. We have three successful funds – and are currently in the middle of fundraising for the fourth fund generation – more than 650 investments, over 150 exits and three IPOs. We also have a very strong team and a large network. The academy enables us to satisfy the needs of our stakeholders by tapping into the in-depth knowledge and experience that is embedded within HTGF.

What do you offer company founders?

Claudia Raber: Even before founding a company for the first time, we can provide them with valuable tips and show them what to watch out for when implementing their ideas and plans. And then of course there’s what we have to offer for our portfolio companies. The Academy is a fantastic opportunity to remain well-informed and be kept up to date. Many of our companies are also looking to share experiences, and we offer a number of opportunities to do so. We host various “matching” formats, for instance, in which our portfolio companies can network in an exclusive setting with potential investors or customers and cooperation partners.

Alex, you mentioned the fund investors. What additional benefits do you offer them through the Academy?

Alex von Frankenberg: We provide investors with an exclusive range of knowledge, giving them access to important insights they can leverage to develop their company. We believe that knowledge transfer shouldn’t just happen by chance. Instead, it must be systematically channelled so as to generate real added value. The investors gain access to a large network with a high level of expertise. In addition to our portfolio, identifying trends and creating opportunities for cooperation, the new Academy is a fantastic addition to the range of benefits that HTGF already offers.

And is this something your employees can benefit from?

Alex von Frankenberg: Absolutely! New employees, especially those who aren’t overly familiar with the investment sector, can learn and get to know the environment very well and very quickly. But members of the team who have been around for longer are also able to stay on the ball and further their development.

And what are the next steps?

Claudia Raber: We’re already making strides. We’ve updated our website, where you can now find an overview of what’s on offer. Portfolio companies and fund investors are able to view all exclusive events at a glance. We will announce public sessions on LinkedIn – and registration is simple. We’re planning a highly diverse programme for all who are interested.

“Industrial tech harbours a wealth of innovation potential”

Markus Kückelhaus has spent over 25 years driving innovation, strategy and financial topics for corporations – and has worked with many start-ups in the process. The 53-year-old has now joined High-Tech Gründerfonds as a partner. In this interview, he outlines the opportunities that arise when corporations and start-ups cooperate, takes a look at industrial tech trends, and reveals what he expects from start-ups in Germany.

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How would others describe you?

That’s a good question. They would perhaps say that I’m a really good judge of what will work – and what perhaps won’t – when it comes to innovation. Amid all the hype that so often surrounds the world of technology, we all need to differentiate between which topics are relevant and which aren’t. And I’m relishing the chance to do so at a VC in the early seed stage. HTGF was highly professional in our dealings over the years. I always felt our collaboration was one built on a spirit of mutual appreciation and friendship. It’s this combination that convinced me to join the team.

You still have a somewhat external perspective to draw on. In your previous role, what did you value in your collaboration with HTGF?

As a HTGF fund investor, Deutsche Post DHL Group – and also myself as a representative on the investment committee – gains a great deal of insight into the start-up ecosystem. The screening performed by HTGF here in Germany is quite unique, and it presents major corporates with an excellent opportunity to discover technologies and trends. At Deutsche Post DHL, we frequently cooperated with HTGF portfolio companies and conducted proof-of-concept testing for innovative solutions – from cleaning robots to inventory drones – to explore their use in logistics settings. Thanks to these tests, it quickly became clear which technologies would hold up in the tough world of industry, and how the specific costs and benefits would stack up.

You said at the start of our interview that it’s important to evaluate what will work and what won’t. What does that mean for start-ups? What does work when collaborating with corporations?

Start-ups need to understand that corporations are interested in systemic solutions, not just technological components or a piece of hardware. They want to realise efficiencies, expand their portfolio or facilitate new business models. In my experience, it’s something that a lot of start-ups struggle to grasp, especially in the industrial sector, and they run the risk of focusing on a single technological component they’ve developed rather than thinking in terms of systemic solutions. Corporations need solutions that can be deployed for a number of years. And with everything that entails, of course.

What do start-ups need to consider when they begin working with corporations?

At the start of a collaboration project, large companies ask themselves the following questions: How far do we want to go? How much do we need to invest? Innovations that optimise internal processes and thus reduce costs, for example, are of course quick wins. In this field, this is one of the easiest ways for start-ups to start doing business with corporations.

When do things get tougher?

When corporations want to use a start-up idea to tap a new market, things can quickly become more complicated as they have to set up new structures. It becomes even more challenging when they want to integrate a new product that falls outside of their core business. Both sides – corporations and start-ups alike – need to be aware of these processes. And this needs to happen at quite an early stage so that they can gauge what will – or perhaps won’t – work, like I said before. Moving forward, this is something that I’d like to help both sides with, by sharing my experience.

In your previous role, you worked with start-ups from around the globe. What are your thoughts on the scene here in Germany?

It’s quite incredible to see what’s coming out of Germany, especially from the research being conducted at universities and institutes. At the same time, though, I’d like to see more courage to launch and scale good technological solutions at a faster pace. I sometimes feel that this courage to scale is in somewhat short supply in Germany, especially compared to other countries. But the bedrock of good ideas, technologies and business models here in this country really is great.

You’ve taken on the role of partner for industrial tech. What are the major trends you see?

Robotics coupled with automation remain a huge topic that is relevant for the entire manufacturing industry. Robot gripper technology has really come on leaps and bounds in recent years, but there’s still some potential to be unlocked, such as in combination with computer vision. We’ll also see a lot of advances in human-machine interaction, such as with bionic enhancement. It’s less a matter of “human or machine”, but rather “human and machine”. How can smart glasses, exoskeletons and other technologies help humans go about their work? On top of that, you also have the Internet of Things (IoT), which will remain a relevant topic. And in this field I’m hoping to see developments moving away from silo solutions.

Could you share some more details?

There’s been a been a great deal of hype over IoT for years. But so far there’s been lots of individual solutions. We now need to come up with an answer to the following question: How do we take this combination of hardware, software, new transmission technologies like 5G, and analytic capabilities, for example with the aid of artificial intelligence, and leverage it across value chains. Especially in the industrial sector, which is a lot more fragmented than the consumer market, we still need to find good answers. And that’s why this is an area that, much like the entire industrial tech space, harbours a wealth of innovation potential.

Important developments to watch out for in 2022

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Post-merger integration as a key factor for successful acquisitions  

An acquisition is far from over with the signing of a contract – what then follows is the important process of integration. This is why High-Tech Gründerfonds (HTGF) is offering a think tank on this topic at the High-Tech Partnering Conference in February. The aim of the think tank is to discuss the topic with experts from different viewpoints. In this interview, Anke Caßing and Axel Nitsch, both principals at HTGF, provide a bit of background on the planned format. 

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You are planning a think tank on post-merger integration (PMI). Can you give us a brief introduction? What exactly is it about? 

Axel: Numerous studies indicate that many companies fail to achieve the goals they set themselves with an acquisition. In this context, post-merger integration is often an important aspect. 

Anke: In the many preliminary discussions we have held with experts, we have clearly seen that successful post-merger integration takes place at various levels. Examples include the rapid standardization of accounting and reporting, the integration of process landscapes and, above all, the merging of different cultures from two separate companies. This is why such a merger is a highly complex process. It is important to look at it from different angles. 

Are there typical processes that characterize a PMI? 

Anke: First of all, such an integration is very specific to each company. There are numerous factors and influences that determine the course and nature of such a PMI. For example, there are acquisitions that entail a clear transfer of technology. A large company acquires the know-how of a start-up, and the integration subsequently focuses on how the buyer can develop its own product from this technology. The focus is clearly on knowledge transfer.  

Axel: It’s different when taking over an existing business model, for example. A young company or a start-up has turned an innovation into a product and has already established itself in a market. Here, acquisitions are aimed at taking over the entire business model. Of course, finances and reporting also need to be consolidated, which can happen rather quickly. But depending on how deeply the company is to be integrated, culture plays a decisive role. 

Why is this topic so important to you? 

Anke: One of HTGF’s goals is to connect large and medium-sized companies with start-ups. Even though we as HTGF are no longer involved in the integration after an exit, we think it is important to shed more light on the topic for our portfolio companies and potential buyers. We want to give the opportunity to share experiences at the conference: What do you have to pay attention to? What are mistakes that can be avoided? That’s exactly what we want to take a closer look at during this think tank.  

Axel: The topic is often given too little attention, as was repeatedly pointed out to us during our preparations. Often, not enough time and resources are allocated to the complex process of post-merger integration. The conference is aimed at partnerships between established industrial companies and innovative start-ups. Acquisitions are clearly part of this and the HTGF network includes many professionals with a lot of relevant experience. We want to share some success stories and practical approaches that can be put into action.   

 Who will be the guests at the event?  

Axel: Our aim is to bring together experts from different areas. We look forward to welcoming Ralf Temporale, Head of Strategy, Consumer & Operations, Talent Partner at EY, who has directly supported many such integrations. He will certainly have a lot to tell us about the integration of branding, culture and employees.
We will also talk to Sven Hänchen, Business Development Manager at Wolters Kluwer, an information services provider from the Netherlands. Acquisitions are an integral part of their business strategy. He will also provide valuable insights and talk about the depth of integration – an important aspect of PMI.  

Anke: We are looking forward to welcoming Sara Khan, VP of Legal Affairs at LTN Global, one of the leading media technology companies. We will also be joined by Bernd Gross, who will be able to report from his first-hand experience. His IoT company Cumulocity was acquired by Software AG in 2017 – today he is CTO of Software AG.  

Axel: He will also address the topic of incentivization. What incentives does a company offer to retain or even change a management team? This important aspect is underestimated all too often.  

And why do you refer to this format as a think tank? 

Anke: Because we look at the topic from different angles. We start with short keynote speeches delivered by the experts. Here, we get an initial insight into their experiences. We then jump into a panel discussion and delve deeper into the various aspects.  

Axel: And of course we also want to engage in discussion with the conference participants. A format like this thrives on discussion. After all, our aim is to have a comprehensive exchange of experiences in which everyone can learn from each other and take away important impulses. 

The added value of collaborations

How can established companies and start-ups develop side by side? The secret is cooperation, to which HTGF attaches particular importance. Alex von Frankenberg, Managing Director of HTGF, picks up on a number of successful examples from the roughly 200 collaborations between portfolio companies and fund investors to show why in some cases one plus one equals three.

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Alex von Frankenberg, what would you say are HTGF’s main tasks? 

HTGF is a seed investor. And as this description suggests, we are often the first investor in a start-up. While we may sometimes be the sole investor, we’re also really happy to have other investors on board, too. When making these investments, we ensure that the start-up is well positioned after the seed round. For instance, we make sure that the intellectual property is fully retained by the company and that reporting processes or an advisory board are established.  The most important goal in the seed phase is to secure a Series A funding round. However, often there is very little time to achieve this aim – usually just 12 to 18 months. We provide assistance with strategic issues such as product/market fit, offer support with recruitment through our network of contacts and act as a catalyst for fundraising, for example by opening doors to follow-on investors.  

HTGF is often seen as an interface between portfolio companies and fund investors. Can you elaborate on this role? 

It is important to understand that our private investors are not solely interested in returns. This is obviously one of the aspects they consider, but they primarily want to secure tangible added value for their companies.  

And what would that be? 

We work closely with investors beyond just the fund investment in itself. We are firmly committed to providing our investors with access to the knowledge, experience and network that we have built up over the past 16 years. We help to maintain collaborations between fund investors and our portfolio companies. We want to strengthen our fund investors’ innovation capabilities, inspire them, connect them, and of course open the door to co-investments or acquisitions. 

You just touched on the subject of cooperation. What form does this take? 

There are many different types of collaboration. For example there’s R&D cooperation, where research is conducted on a collaborative basis. Then there are sales collaborations where a large company uses its power to market the product of a young company on a global scale. Or the two companies make joint purchases and take advantage of the better conditions of the company with the greater sway. But it can also go in an entirely different direction. For instance, our fitness company eGym is helping our fund investors Fraunhofer, EWE and DHL keep their staff fit and healthy. 

Looking back at the previous funds, can you give us any examples of particularly successful collaborations? 

There are so many. We’ve helped establish roughly 200 collaborations in total. Off the top of my head, I would have to think of Juniqe, an online shop for art enthusiasts that we’ve been involved with since 2014. Juniqe is collaborating closely with our investor Cewe. Europe’s largest photo service provider produces prints for Juniqe, not only generating sales for the company but also helping it to learn from the approach and spirit of the start-up. Elsewhere, our fund investor Bosch and the Bonn-based start-up Code Intelligence have joined forces to help make software safer in the automobile sector. Another example that springs to mind is the Swiss start-up AMAL Therapeutics, which we financed together with our fund investor Boehringer Ingelheim. Boehringer then bought the company for several hundred million euros. 

So one plus one makes three in a way? 

Exactly. In the best-case scenario, that innovative spark gets passed on. The small company comes up with a new technology or business model, and the large company learns from it without having to compete with the portfolio company. The investors gain fresh impetus and insight to help drive their cultural transformation and digitalisation while also developing or adding to their core business in a targeted manner. This worked extremely well in the case of Solandeo, for instance. The Berlin-based tech firm specialises in smart metering solutions and intelligent forecast and analysis products. For a large energy company such as EWE AG, this start-up was electric – in the truest sense of the word. EWE AG took up a stake in Solandeo and now both companies are working together to help make the energy transition a success.  

And what role does HTGF play in this process? Are you a kind of “matchmaker” or “date doctor”?  

We bring both parties together and place great value on dialogue. Each fund investor is looked after by two experienced investment managers who serve as central contact points. Their job is to find companies in the deal flow, portfolio or indeed on the market that match the search criteria of the fund investors. This often takes place at our regularly held events such as the HTGF Family Day or the HTGF Partnering Days. In many cases, the two parties would never have found each other without our help. Start-ups and larger companies often speak different languages. It can therefore be helpful when you have someone to act as an “interpreter”. 

In some instances, neither side needs an interpreter. The two parties might be such a good match that the investor fully acquires the start-up there and then.  

Yes, this has happened on eleven occasions in the past – most recently with JeNaCell. This was a biotech company that had developed a nature-identical material to treat wounds and burns in the field of dermatology and medical technology. In 2012, HTGF became one of the first seed investors in the company. Specialty chemicals company Evonik invested in JeNaCell in 2015 through its venture capital arm and is now integrating the firm’s portfolio into its own healthcare business. This is a great example of how we also help fund investors and start-ups to work together in the long term.  

If I’ve understood it correctly, a hallmark of these collaborations is that both companies learn from each other. 

This simply has to be the case, as our efforts should clearly lead to a win–win situation. The large company knows a thing or two – and the same applies to the smaller company. The two companies establish a dialogue and share their expertise with each other. One plus one often doesn’t make three, but five – we see quite significant synergies on a regular basis. What’s important to remember is that collaborations are only successful in the long run if both parties benefit. Again I’d stress here that while it is of course important that the High-Tech Gründerfonds portfolio shows good development, it is just as important that we support our fund investors in achieving their goals. We’re enjoying success on both these fronts. 

Has the start-up scene in Germany changed at all over the last decade?  

I think so. We’re seeing a lot of experienced founders reappearing on the scene. This never really happened before. The whole scene is also much more mature. The young business leaders are fitter, better and more professional. They know exactly what they want to do. And I’m also especially pleased to see that many entrepreneurs are more ambitious and setting the bar high.  

And High-Tech Gründerfonds helps them to achieve their objectives? 

Absolutely. We understand the special challenges that entrepreneurs face and understand their needs. In addition to flexible financing, we offer start-ups crucial benefits that are tailored to their individual situations. We primarily act as a strategic springboard for both our portfolio companies and our fund investors.  For our fund investors, we are the platform that offers access to start-ups and, in turn, the innovations of tomorrow – essentially we offer them a glimpse into the future. 

Life Science Pitch Day: Real entrepreneurs, real innovation, real added value

It was a special moment when CureVac founder Ingmar Hoerr shared his business story at the Life Science Pitch Day. More than 30 start-ups, investors, and scientists took part in the event at the end of September, which was organised by High-Tech Gründerfonds (HTGF) together with partners Bayer, Boehringer Ingelheim and the Innovation and Start-Up Center Biotechnology (IZB). We spoke to the event organisers at HTGF: Dr. Caroline Fichtner and Dr. Martin Pfister, both HTGF Principals, touched on the latest trends and talked about the influence that the increase in media reporting has had on the sector during the pandemic as well as the topics that dominated the event.

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The Life Science Pitch Day took place at the end of September. What was it all about exactly?

Caroline: Pitch Days take place in various formats. Start-ups can apply to take part, approximately ten of which get the chance to present their business ideas. We then invite investors from the sector as well as HTGF fund investors to attend. This format is not about presenting our own portfolio, which is why we always target companies outside of our portfolio as well as start-ups that do not necessarily need to still be in the seed phase. The Life Science Pitch Day, however, specifically concerns biotech and pharma projects.

What makes your Pitch Day so special?

Martin: Developments in the biotech scene are very wide-ranging. It’s important that investors and young development teams are able to find a good level of communication at an early stage. This is something we can offer at such dedicated events.

Caroline: The field of drug development is very distinctive in its own right and is therefore very particular when it comes to addressing potential investors. It must adhere to long development cycles, strict provisions and specific development sequences. All of this means that the sector is very capital-intensive. Investors therefore have to dive deep into topics and posses the necessary experience.

Do you share the opinion that the life sciences sector as a whole and biotech especially has experienced an additional upswing as a result of the pandemic?

Martin: Definitely. We’re seeing that start-ups in the fields of biotech and pharma have been able to attract high levels of investment in the last couple of years. In Europe too, large financing rounds are commonplace. The pandemic and the subsequent focus on German vaccine manufacturers such as BioNTech and CureVac have obviously brought added attention. We’re now witnessing a shift to topics that have suddenly become more relevant, such as mRNA, gene therapy and antibodies. This has also been reflected in the companies taking part in our Pitch Day.

At the same time, media reporting on the life sciences and biotech has also increased in the last few months.

Caroline: Even before the pandemic, we and many experts were aware that biotech is an innovative field with real entrepreneurs and real successes creating real added value. But public discourse has now shown the public at large how great the potential for innovation in this sector is. Previously, the sector’s image was dominated by the notion of “nerdy” scientists and researchers. The issues being researched were too complex for the public to get a handle on.

Martin: It’s great to see the sector receiving more media coverage. This is something we’ve witnessed first hand with companies from our portfolio. Cardior, for example, is a company researching a treatment against heart failure on the basis of mRNA and which is now receiving increased attention after attracting EUR 64 million in financing. The increased media reporting also provides a greater incentive for others to start up businesses. In addition, you have successful biotech and life sciences entrepreneurs who have been able to sell their companies after presenting patient efficacy data and are now launching new start-ups.

Was there a trend that dominated the Pitch Day?

Caroline: We’re seeing a lot of young companies in the field of oncology, i.e. cancer research. And platform technologies are being further developed. Research is being conducted on technologies that serve as a basis for developing several drugs to combat various diseases, in a similar way to how BioNTech operates. It was also interesting to see a number of companies from the field of genetic research who are working on a type of CRISPR/CAS 2.0, and are thus further developing the genetic scissors – a really exciting platform.

Martin: Another remarkable development this time around was the fact that many of the start-ups had already received funding – often within an academic setting. They had been able to make great progress with their innovations within this framework and are now ready to take them out into the open. This makes their developments more tangible, with projects becoming more exciting as a whole for potential investors.

Were there any companies that particularly stood out for you?

Martin: There truly were a lot of good ideas. With RecTech, for example, we saw an interesting start-up from the field of genetic research that is looking to cure genetic diseases through its work. They develop high-precision genetic scissors, known as designer recombinases, which can correct errors in the genome and which, in contrast to other enzymes such as nucleases, work faultlessly.

Caroline: Another pitch by an as-yet unnamed NewCo was also very intriguing – it’s researching a new Alzheimer’s drug based on small molecules. In contrast to current treatments, this drug would be administered simply as a tablet, and preclinical tests have shown the drug to be effective with fewer side effects. We heard about so many fantastic innovations. It’s great to see what’s going on in the scene.

A special guest at the event was CureVac founder Ingmar Hoerr, who shared his business story. You interviewed him, Martin. What impressed you about him?

Martin: It was a fascinating discussion because he spoke about the early days of CureVac. He also told his own personal story, which – and this is something that’s often underestimated – had a lot to do with adversity and being different. His courage to pursue an untapped, disruptive topic such as mRNA vaccines in the face of much resistance was particularly inspiring for myself and the many entrepreneurs at the event.

So do you have any tips to offer? Beyond the Pitch Days, you work with investors and founders on a day-to-day basis. Is there any advice you’d like to share?

Caroline: I’ll start with the company founders: Make sure to focus! With platform technologies in particular, there’s a danger that you’ll get lost along the way because the opportunities are endless. This is something we experience on a regular basis. Set yourself a clear target and don’t be too swayed by early offers from larger partners. This is something I always advise against.

Martin: I’d also advise company founders to search for a partner that can help you navigate the jungle of options on offer. We touched on it before: the scene is booming and there are a lot of new developments. As a founder, you need an investment partner that you see eye to eye with and that knows what it’s doing. At HTGF, we’ve covered the market for more than 16 years now and have in-depth knowledge of the scene. We have good relations with start-ups and investors and know just how important know-how as well as trust between the individual stakeholders is. This is another reason why we stage events like our Pitch Day – to help create a common foundation for long-term success.

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