Venture capital investments exceed previous year's figures
At the beginning of 2014, there were good news coming from Berlin and for the venture capital scene in Germany. Investments in start-ups "Made in Germany" have increased again, according to deutsche-startups.de. Startups, such as Zalando, Rebuy, Mister Spex, Lieferheld, and recently Amorelie, are becoming more of a focus of institutional investors. Especially after crowdfunding platforms such as Indiegogo, Kickstarter or Companisto had experienced a n uplift in the past few months, the area of institutional investors starts moving faster as well.Less surprisingly it seems that according to the study approximately 46% of all transactions were made in Berlin so that the main part was invested into Berlin startups. Well know as a hotspot for start-ups in Germany and Europe, the city brings up companies like Zalando, Lieferheld, and Soundcloud which are being talked about even in Silicon Valley.
Digital transformationWe are in a time of the „digital transformation“ as it explains Professor Tobias Kollmann from University of Duisburg-Essen. The number of smartphone users and the time we spend each day at Internet is growing steadily in Germany. We order food, glasses, shoes and electrical goods online, knowledge, services and industries to transfer into the net. A digital structural change in the social and economic sphere. But where there are large breaks, as well great opportunities arise. New businesses and industries arise where there has been no demand ahead. The increasing amount of investments in start-ups "Made in Germany" are a reflection of that. Whether private savers or institutional investors, many want to participate in the Berlin model of success and invest in young growth companies from Germany. As Professor Kollmann very impressively described "Amazon has together with the four other largest U.S. Internet and IT firms an almost equal market value as the German Dax 30 companies together". This refers to the IT companies Apple, Facebook, Google and Ebay.
Seven participations German Startups GroupAt the beginning of 2014, the German Startups Group has announced to have invested in 7 additional companies and thus remains one of the most active German early-stage investors. With the investments in Delivery Hero (Lieferheld), Mister Spex, rebuy, ePetWorld, Amorelie, Funanga and, eWings, the German Startups Group is continuing its strategy of large diversification.
"We have consciously extended our investment focus in the last six months to existing shares in established startups, so called secondary shares that we purchase from entrepreneurs and business angels, which often want to transfer a few of their shares into cash. The portfolio of the German Startups Group thus offers its shareholders an even greater degree of diversification and the opportunity also to participate in already internationally active German start-ups", said Christoph Gerlinger (CEO of the German Startups Group).