HTGF III holds final close on €316.5m

HTGF III is a public-private partnership, raising 30% of the fund from 32 corporate investors and the rest from institutions including the Federal Ministry for Economic Affairs and Energy, state-owned bank Kreditanstalt für Wiederbau (KfW) and the Fraunhofer Gesellschaft.

The vehicle was launched in June 2016 and made its first investments in autumn 2017, after holding an initial close on €245m in September.

HTGF has gradually increased both its fund size and the portion of private commitments raised by its vehicle. HTGF II held a final close on €301m in January 2013, with 13% coming from private investors, and HTGF I raised €272m in 2005.

HTGF III tweaked its terms in September 2017, raising its initial investment cap from €500,000 to €1m and allowing more opportunity for co-investment with a freely negotiable valuation model. It also introduced the flexibility to back companies that are headquartered outside of Germany in exceptional cases.

The investor has also announced the removal of the obligation for founders to invest in their own funding rounds, although the option for them to do so still exists.

Investors
Institutional investors include the Federal Ministry For Economic Affairs and Energy, the KfW Banking Group and Fraunhofer-Gesellschaftas.

The vehicle also received backing from 32 corporates including Altana, BASF, Bayer, BBraun, Boehringer Ingelheim, Robert Bosch, BÜFA, CEWE, Deutsche Post DHL, Dräger, Drillisch, Evonik, EWE, Haniel, Hettich, Knauf, Körber, Lanxess, Media + More Venture Beteiligungs, Phoenix Contact, Postbank, Qiagen, RWE Generation, SAP, Schufa, Schwarz Gruppe, Stihil, Thüga, Vector Informatik, Wacker and Wilh Werhahn.

Investments
HTGF will make initial investments of €1m in German technology startups, with up to €3m available for further funding rounds. It will focus on high-tech startups in a range of sectors, including software, media, internet, hardware, automation, healthcare, chemicals and life sciences.

People
High-Tech Gründerfonds – Michael Brandkamp, Alex von Frankenburg (managing directors).

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