HTGF in 2024 – a year of new records in a challenging environment plus major changes

A record level of follow-on financing, start-ups with billion-euro valuations, and a challenging economic environment – these are the main takeaways of the year 2024 for the High-Tech Gründerfonds leadership team. In this interview, Romy Schnelle and Dr. Alex von Frankenberg take a look back at an eventful 12 months.

2024 has been a year of change for HTGF.

Romy Schnelle: It certainly has. 2024 was an extremely dynamic year with lots of positive developments, but also some major changes. A significant change was of course the departure of Guido Schlitzer, who is stepping down as Co-Managing Director. We’d like to take this opportunity to once again thank Guido for his time at HTGF.

Alex von Frankenberg: At the same time, we’re also really looking forward to working with Dr. Achim Plum. He has a wealth of experience in the life sciences, having helped to develop a number of early- and growth-stage companies and overseeing two IPOs. We are delighted that he’ll he starting his new role right away on 1 January as we take the next steps on our journey together.

2024 was a challenging year economically. How did HTGF fare in this environment?

Alex von Frankenberg: We had a very successful year. We were once again one of the most active early-stage investors in Germany and Europe. And we also set a new record for follow-on financing, with our portfolio companies securing over €1 billion in funding from investors in follow-on rounds in 2024. This shows that capital is still available. Making sure it ends up in the hands of the right companies is really important. Our portfolio is in a good position in this respect, and we’ve seen how our start-ups have been able to deliver in challenging times, too.

Romy Schnelle: It was not an easy year by any stretch of the imagination, but it showed what we can accomplish as a team. Despite the challenging conditions, we’ve achieved a great deal together with our fund investors and portfolio companies. And for that we’d like to say a big thank you to our team and our partners.

What’s the mood like among start-ups in view of the economic challenges?

Romy Schnelle: Many start-ups are of course feeling the effects of the current framework conditions. They’re facing challenges in the B2B space in particular, such as in customer acquisition, as companies have generally become more cautious. In addition, many start-ups are noticing that investors have become more selective in follow-on financing rounds – despite there being a lot of capital in the market.

Alex von Frankenberg: Focus is key. Especially when faced with challenging market conditions, it’s clear just how important capital efficiency, a clear product focus and good management are. The best teams are able to deliver in these sorts of times, too, and secure solid levels of financing. And the past has shown that many of the most successful companies around were established during times of crisis.

What trends do you currently see in the HTGF portfolio?

Alex von Frankenberg: Climate tech and energy are big topics. A good example to mention here is our portfolio company Proxima Fusion, which is working on remarkable ways to generate clean energy using fusion power. They secured €20 million in seed financing in April. The company is building on the ground-breaking results from the Wendelstein 7-X (W7-X) experimental reactor, which is the world’s largest stellarator. It was built by the Max Planck Institute for Plasma Physics (IPP) and has received €1.3 billion in investment from the German federal government and the European Union.

Romy Schnelle: We’ve also seen some exciting developments in other areas. Plancraft, a software solutions provider for tradespeople, and doinstruct, a digital training platform for industry, have recently made impressive progress and have been able to attract investors such as Creandum.

Alex von Frankenberg: Portfolio companies in the life science industry have also been very successful, having completed major financing rounds – including in later-stage growth phases. Take Tubulis, for example, a company that develops antibody drug conjugates to treat cancer, or SciRhom, which specialises in the treatment of autoimmune diseases.

Romy Schnelle: That’s why it’s important that, thanks to the Opportunity Fund, we are able to support start-ups from our portfolio in later-stage financing rounds as well, with funding of up to €30 million in the growth phase. One of the first start-ups that we’ve financed through this channel is Aignostics, which is developing an AI model for pathology. It has the potential to offer more targeted therapies and shorten development cycles in the pharmaceuticals industry.

The Cardior exit at the start of the year was a great success. What made it so special?

Romy Schnelle: Cardior develops RNA-based therapeutics to prevent, repair and reverse diseases of the heart. The company was acquired by Novo Nordisk. With a valuation of up to €1.025 billion, it marked a huge success for the team as well as a major step forward for research in this field. It shows how important German start-ups can be on the global stage – as well as the valuable benefits they deliver for patients and science.

HTGF also has a new German unicorn in its portfolio, EGYM. How did it become such a success?

Alex von Frankenberg: I’ve been supporting EGYM for over 10 years as an investment manager, and the team has achieved really great things in the past few years. The pandemic brought about some major challenges, but they responded in a smart way. In setting up the business unit “Wellpass”, they provide companies with corporate fitness offerings for their staff. This step was an important decision. Today, EGYM continues to grow and is profitable. I am certain that this success story is far from over.

HTGF will be celebrating its 20-year anniversary in 2025. How has the start-up ecosystem changed during that time?

Romy Schnelle: The ecosystem is now a lot more professional. Founders are more confident and faster in realizing their ideas, which makes them bolder. At the same time, the importance of start-ups within the macroeconomic context has skyrocketed.

Alex von Frankenberg: I couldn’t agree more. The concepts are more mature, and the companies are less prone to making mistakes. And even when mistakes do happen, the effects are easier to absorb due to the higher level of financing. In the past, start-ups tended to be more fragile, but today, even young companies have a really solid set-up.

What can we expect to see in 2025, HTGF’s anniversary year?

Romy Schnelle: 2025 will be a special year for us. To mark our 20-year anniversary, we’re planning a special Family Day in Berlin with an even greater focus on networking – as well as a big birthday party, of course. At the same time, we are working flat out to prepare our fifth fund – a clear signal that we plan to invest in pioneering start-ups in the long term.

Alex von Frankenberg: 2025 offers a great many opportunities – both for HTGF and the start-up ecosystem as a whole. I hope we’ll see more economic and political stability. Stability is also important for HTGF – and it’s something we’ll make sure to maintain when my contract comes to an end next year, as already announced. I have every confidence that the team and the new leadership team will continue and build on what has been a great success story. In the coming months, we’ll be working on steering HTGF towards this new phase. The successes we’ve seen over the past 20 years are testament to the extraordinary technology and start-up potential in Germany.