RWE Generation, the power generation division of energy utility RWE, has provided an undisclosed amount of capital for the third fund to be raised by Germany-based venture capital investor High-Tech Gründerfonds (HTGF).
The investment was announced shortly after the launch of HTGF III, which has a target of €300m ($355m). RWE Generation invested a seven-figure euro sum, and will give input on HTGF’s hardware, automation, energy and industrial software, IT, telecommunications and e-commerce activities.
Founded in 2005, HTGF is a German government-mandated organisation that invests in local startups at seed stage, taking funds from a range of domestic corporates. It provides up to €1m for each investment and up to €3m in total for each company.
HTGF III reached a $275m first close in May this year, securing cash from 26 corporate limited partners as well as development bank KfW and Germany’s Ministry for Economic Affairs and Energy It follows a €272m first fund and a €304m second fund in 2011.
The firm has approximately 37 corporate backers that already included RWE as well as chemical producers Evonik and BASF, electronics maker Braun, industrial product manufacturer Robert Bosch, logistics service Deutsche Post DHL and enterprise software provider SAP.
Götz Hanau, RWE Generation’s head of strategy and innovation, said: “Through this investment, we are seeking to gain access to innovative startups and monitor technological trends across various industries.
“If individual startups are a good fit for us, we will explore collaborations as well as investments in individual cases.”