Corporate venturing has played a "very active" role in helping develop nascent German businesses seeded by the state’s early stage fund.
Alexander von Frankenberg, managing director of High-Tech Gründerfonds, said companies had provided more than a fifth of the €250m in follow-on funding to the 205 companies it had seeded over the previous five year.
He said at the European Private Equity and Venture Capital Association’s conference that the Gruenderfonds had initially provided these companies with €102m, at an average of €500,000 per business, as seed money with the idea that private money would then come in at a later, lower-risk stage with follow-on investment.
He said the Gründerfonds only provided €19m of this follow-on money with 61% coming from venture capital firms, 21% companies and 18% business angels.
Von Frankenberg added: "Companies, such as Robert Bosch and BASF, have been very active both from their corporate venturing groups and in offering business relationships to help them build up."
He added that 28% of the follow-on money had come from other countries, such as France, which has a tax incentive to promote such cross-border deals.
Germany support has followed the separate decision by an Australian state to wind down its seed fund, Playford Capital, according to local news provider Sydney Morning Herald.
South Australia had used Playford Capital for the past 12 years to take minority stakes in start-up companies but with the emergence of private investors, such as SA Life Sciences Advancement and Trans Tasman Commercialisation funds, it was time to provide other firms of support, the local minister said.