One indication of Lutz Stoeber, investment director at Evonik Venture Capital’s (EVC), success has been in building the corporate venture unit of the eponymous Germany-based chemicals company’s relations with the wider venture ecosystem.
No doubt helped by the BASF diaspora that populate other leading corporate venturing groups, including Evonik, Merck, Saudi Aramco and Eon, Stoeber is one of the few corporate venturing representatives from overseas firms advising US trade body the National Venture Capital Association (NVCA).
Bernhard Mohr, head of Evonik Venture Capital and former BASF Venture Capital partner, said: “Over the past three years he has helped us to build our portfolio in the US, besides establishing a strong network in the VC industry.
“Lutz was recently appointed by NVCA as member of its Corporate Venture Advisory Group. Personally, I have highest appreciations for Lutz’s professionalism and dedication to his work, in combination to the experience and transactional background he brings to our team.”
Stoeber joined EVC as an investment manager and one of its founding members under Mohr in 2012. He was promoted in the following year to investment director to take on the responsibility for investments in North America.
Stoeber said these areas included “innovative technologies with high growth potential in the field of specialty chemicals, advanced materials and animal nutrition and include companies with solutions to problems within the following megatrends – resource efficiency, health and nutrition and globalisation”.
EVC has invested in nine companies, including Airborne Oil & Gas, Algal Scientific, Biosynthetic Technologies, FRX Polymers, JeNaCell, Nanocomp, Synoste, Vivasure and Wiivv. In addition, EVC became an limited partner in four VC funds, including Pangaea Ventures, Emerald Technology Ventures and GRC SinoGreen Fund in China.
Previously, Stoeber had been involved in investments in chemical, advanced materials and industrial companies throughout the capital structure, he said. “I helped to establish Pardus Capital, a special opportunities fund, between 2005 and 2010 and ran their German office.
“Between 1999 and 2005, I worked for institutional investors and was part of DGH&A that was widely recognised for its ability to acquire, set strategy for and grow companies in the chemical and industrial minerals sector.”
Stoeber, who completed his PhD in polymer science, added: “What attracted me to CVC is the extensive technical and business expertise that corporates have in-house.
“I enjoy a combination of strategy, entrepreneurship and investing in different industries and also where industries cross. Corporate VC allows me to participate in all that – to work with a variety of business units on growth strategies, to bring new technologies to the business units and learn from seasoned operators in the business units. In addition, it allows me to interact with entrepreneurs and technologies that change the way we will do things in the future or have a major impact on advancing our lives.
“For a corporate venturing unit, it is essential to define the objective of the venture capital activities and establish a close link to the parent’s innovation programs and business interests. At EVC, we established a cross-functional team with team members coming from within Evonik and some joining from the outside. This allows for strong functional expertise in investments and also for communication directly with the operational business units.
“One of the biggest challenge for corporate investors is undoubtedly internal in nature. Maintaining consistent and ongoing business unit engagement is a key challenge we engage daily.
“The benefit is that over time the business units start to see the value of having an externally focused innovation arm and rely increasingly on us with the expertise we bring.
“Corporate venturing has dramatically matured over the past few years. Especially around topics such as when to engage corporate investors, the financing discipline of corporate investors are improved and the engagement of corporate investors with venture businesses.
“Although there are still misperceptions around the role of CVCs and disagreements around valuations that CVCs need to entertain, I believe CVCs are astute enough to show the significant value that they bring apart from the investment. This strategic value is often not reflected and recognised enough.
“I anticipate continuing in my role in corporate venturing and eventually might return to traditional venturing. I also cannot rule out another opportunity that appeals to my inner entrepreneur having worked in a startup.”