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bm|t newsletter Q1 2022

»Invest beyond the crowd« is an impor­tant con­cept for our upcom­ing Investor Days Thürin­gen event (more about IDT is avail­able below), and we whole­heart­edly sub­scribe to the invest­ment phi­los­o­phy that investors gen­er­ally dis­cover more attrac­tive oppor­tu­ni­ties off the beaten path, beyond the crowd.

In this Newsletter 

Invest Beyond the Crowd

We believe that com­pelling invest­ments should be able to meet BOTH of the fol­low­ing criteria: 
  1. The invest­ment is fun­da­men­tally attrac­tive AND
  2. There is an evi­dent rea­son why we, as opposed to other investors, have this oppor­tu­nity to invest
Thürin­gen is an excep­tion­ally attrac­tive region for invest­ments when look­ing through this crit­i­cal lens. To the first cri­te­ria, Thürin­gen has world-lead­ing tech­nol­ogy in many fields and is increas­ingly adept at con­vert­ing its ground-break­ing research into effec­tive and valu­able com­pa­nies. The region’s world-renowned tra­di­tion and exper­tise in optics (Carl Zeiss / Ernst Abbe) has con­tin­ued and expanded to many adja­cent, related fields (pho­ton­ics, robot­ics, life sci­ences, mate­ri­als sci­ences, etc.) in which Thürin­gen now plays in the top leagues glob­ally. Regard­ing the sec­ond cri­te­ria, Thürin­gen, despite increased vis­i­bil­ity in recent years, remains off the beaten path for most investors. No pri­vate insti­tu­tional investor who invests tick­ets over 1 Mio. EUR has an office here and sur­pris­ingly few make the short trip from Berlin, Frank­furt, or Munich. Thüringen’s record results in terms of total ven­ture fund­ing and seven-fig­ure rounds over the last years clearly demon­strate that investors are increas­ingly find­ing com­pelling oppor­tu­ni­ties here. Impor­tantly, we fore­see that there is fur­ther increase in investor aware­ness ahead, and we work dili­gently to accel­er­ate this recog­ni­tion of Thürin­gen as an attrac­tive loca­tion for invest­ment. There are numer­ous rea­sons why Thürin­gen his­tor­i­cally has not been more in investors´ focus. It has some gen­e­sis in Thüringen’s gen­eral mod­est nature, as entre­pre­neurs here focus more on devel­op­ing inno­v­a­tive tech­nolo­gies and com­pa­nies rather than beat­ing a drum about their accom­plish­ments. Tra­di­tion­ally, most entre­pre­neurs in Thürin­gen have also looked to local part­ners for their ini­tial fund raises. We at bm|t have great respect for the respon­si­bil­ity that comes with this trust placed in us and strive to be an excel­lent part­ner for entre­pre­neurs, pri­mar­ily by acti­vat­ing our extremely strong local net­works and increas­ingly act­ing as a spring­board to larger global investors. While Thürin­gen has flown under most investors’ radars, bm|t has played a cen­tral role in fund­ing the inno­va­tion econ­omy here as the most active ven­ture investor in the region.  This unique mar­ket posi­tion has enabled us to build a port­fo­lio of Investee-Part­ners over the last twenty years that is truly excep­tional in its qual­ity and vari­ety. In addi­tion to being a lead­ing investor in Thürin­gen, bm|t is tasked with increas­ing the amounts of pri­vate ven­ture cap­i­tal being invested here. Thus, we see it as our job to con­tin­u­ally intro­duce more investors to the lesser-known, impres­sive com­pa­nies in the region. In fact, we hope to do our job so well that one day we can call this mar­ket crowded, but that day still has some time to come – good news for those adven­tur­ous investors that voy­age off the beaten path. An easy step for any investor want­ing to dis­cover Thüringen’s invest­ment gems, is to attend this year´s larger-than-ever Investor Days Thürin­gen on June 14th and 15th.  Although we are expect­ing strong atten­dance after two dig­i­tal years, we promise it won’t (yet) be overly crowded 😊 Your bm|t Team

Exit

When we first vis­ited c‑LEcta four years ago, we sensed right away that this com­pany was spe­cial and under­go­ing a trans­for­ma­tion from a R&D ser­vices com­pany to a pro­pri­etary prod­uct com­pany, which we strongly believed would cre­ate great value out of c‑LEcta´s impres­sive assets in the space of enzyme devel­op­ment. Even our high expec­ta­tions were blown away by how quickly the company´s tran­si­tion gained trac­tion with prod­uct rev­enues increas­ing approx­i­mately 10x in the three and a half years we were invested. Not sur­pris­ingly, the company´s strong rev­enue growth and unique capa­bil­i­ties drew sig­nif­i­cant investor inter­est. Kerry Group plc – a global taste and nutri­tion com­pany based in Ire­land and pub­licly traded on Euronext Dublin and the LSE – emerged vic­to­ri­ous with its attrac­tive bid for c‑LEcta. The strate­gic fit is excel­lent, and we are cer­tain that c‑LEcta will con­tinue to gen­er­ate great value in the years ahead. For more infor­ma­tion about this impor­tant trans­ac­tion please see the fol­low­ing press release: bm|t sells its shares in c‑LEcta GmbH to Kerry and real­izes a highly prof­itable exit

After last year’s extremely pro­lific invest­ment activ­ity, which wit­nessed financ­ings for over half our Investee-Part­ners, Q1 expe­ri­enced an expected slow­down in invest­ment activ­ity. This pause par­tially resulted from a require­ment to rereg­is­ter one of our most active funds after its planned invest­ment period ended at the end of last year but thank­fully was extended into 2022. This process has been com­pleted, and we expect to return to a nor­mal­ized pace of new and fol­low-on invest­ments already in Q2.

Follow-on Investments

IROIN (renamed from Crowd Archi­tects) is now exclu­sively focused on its out­stand­ing influ­encer mar­ket­ing soft­ware suite, which it offers on a SaaS basis. Because adver­tis­ing spend on influ­encers is boom­ing, IROIN is well posi­tioned to con­tinue its rapid growth, hav­ing achieved a seven-fig­ure ARR run-rate within only five quar­ters of launch­ing its new offer­ing. bm‑t was joined by pri­vate investors and oper­a­tional part­ners in this invest­ment round focused on turbo-charg­ing sales growth and cap­i­tal­iz­ing on newly-availed, action­able mar­ket opportunities. 

Spotlight on Innovation

On June 14th and 15th, Investor Days Thürin­gen (IDT), the pre­mier early- and growth-stage pitch event in mid­dle Ger­many, will be wel­com­ing over 500 par­tic­i­pants, with approx­i­mately 60 start-ups pre­sent­ing their inno­va­tions and visions. We will host a live event – invest­ment gems, net­work­ing, and beers & brats will all be in ample sup­ply. We are look­ing for­ward to see­ing you in Erfurt this June!

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