BASF bets on nanotechnology
Markus Solibieda, managing director of BASF Venture Capital, the venturing arm of the Germany-based chemicals producer, joined the company last November and has now replaced Dirk Nachtigal, who built and ran the unit for 15 years. He spoke to reporter Kaloyan Andonov
What are the challenges and opportunities you expect to encounter in your new role?
Our challenge is to see the specific business model behind interesting technologies and motivated teams. We need to be present in all global locations where innovation takes place. We cannot afford to just follow trends. We have to look ahead many years down the road. Combining the technology and market know-how of an organisation like BASF with the vision of strong startup teams is our mandate and a very rewarding assignment.
What should we expect from BASF under your leadership? Any changes in the unit’s strategic vision?
BASF Venture Capital is here to stay. In order to deal with the challenges of our market environment, we will continue becoming more entrepreneurial, fast-learning and diverse. Our strategy remains to invest in the most interesting young companies in chemistry and new materials.
What are your observations on industrial corporate venturers in the sector?
Corporate venture capital activities seem to be very volatile, depending on international business cycles and specific technology trends. BASF Venture Capital has been in the market for more than 15 years and we aim to increase our investment activity in the chemicals and new materials sector year by year. We continue to see a growing number of interesting deals.
What particular trends have you and your team observed among industrial startups?
The industrial sector continues to deliver an interesting dealflow. The areas of 3D printing and agtech have been very strong through 2016.
Recently you invested in US-based QD Vision, which develops a type of nanotech. What is your forecast on the impact of advanced materials technology across industries?
We believe that advanced materials technology will be a core element of product innovation in the business-to-business and business-to-consumer sectors. We are just about to see the first applications of nanotechnology to make it to commercialisation, but there is a vast pipeline of innovations in the background. Time-to-market can be five, 10 or even 15 years in some industries, but eventually we will see a strong impact from advanced materials technology, especially in autos, production technology, healthcare and chemicals.
What have been the key challenges in the industrial sector for BASF Venture Capital?
The time to market in the chemicals and new materials space is much longer than in typical venture capital deals. There are no quick flips and easy gains. Investing in our industry requires focus, knowledge, tenacity and patience. At the same time, the lessons learned from working with young companies were always appreciated by our organisation. This is why BASF was able to build such a stable track record.
