Corporates Bayer, Wilh, Werhahn and Boehringer Ingelheim have backed the third fund of German public-private partnership High-Tech Gründerfonds, bringing the vehicle’s second close to more than €316m ($370m).
Pharmaceutical firm Boehringer Ingelheim committed the capital through its corporate venturing arm, Boehringer Ingelheim Venture Fund, and was joined by pharmaceuticals and chemicals producer Bayer, maritime industry group Wilh and conglomerate Werhahn.
HTGF makes seed-stage investments, usually providing up to $3.5m per portfolio company, though it can supply more if it deems the opportunity especially worthwhile. Startups must be no more than three years old, but the terms of the investment are negotiable.
HTGF III has been investing since September after an initial $275m close in March 2017, and originally had a final target of $360m. Its limited partners include 32 corporates, state-owned development bank KfW and the Federal Ministry for Economic Affairs and Energy.
The corporate backers also include Dräger, EWE, RWE, Evonik, Lanxess, Altana, BASF, Wacker, Büfa, B. Braun, Robert Bosch, Cewe, Deutsche Post DHL, Drillisch, Hettich, Knauf, Phoenix Contact, Postbank, SAP, Schufa, Qiagen, Franz Haniel, Körber Group and Media + More Venture.
Michael Brandkamp, managing director of High-Tech Gründerfonds, said: “We are very proud that our third fund has received such a good reception from new investors.
“More and more companies are recognising that investment in new technology is required for all future-oriented industries in order to give Germany a strong stance in the international economy and to drive innovation.
“We are also glad that awareness of the advantages of cooperating with startups is growing steadily, particularly in medium-sized businesses. We are happy to build bridges to bring the two worlds together.”