German government-backed early-stage venture fund High-Tech Gruenderfonds (HGTF) has increased the size of its second fund to €304m ($419.7m) after Bayer Pharma became the fund’s first partner from the pharmaceutical industry.
High-Tech Gruenderfonds II now has 20 backers spanning corporates such as BASF, Siemens, Deutsche Telekom and Bosch, the German government, and development bank KfW. Bayer’s individual investment was not disclosed, but as HTGF II’s fundraising had recently risen to €301.5m, it appears as if Bayer provided €2.5m ($3.45m).
“The participation in Fund II complements our strategy to identify at an early stage new approaches for the development of active ingredients in therapeutic areas with a high medical need,” said Andreas Busch, member of the Bayer HealthCare Executive Committee and Head of Global Drug Discovery. “We want to support young entrepreneurs in testing their creative ideas and we want to promote the exchange of ideas and bring in our expertise.”
Michael Brandkamp, managing partner of High-Tech Gruenderfonds, added: “The possibility of accessing Bayer’s expertise in the future represents a significant additional value for High-Tech Gruenderfonds and our portfolio companies. We are confident we can contribute together with Bayer to the early-stage support of innovations in the healthcare sector.”