bm|t newsletter Q2 2019
Q2 2019 was an eventful period for bm|t with two successful exits coming on consecutive days in June. Exits are often perceived as the ultimate achievement in the world of venture capital investing, and they certainly garner much headline attention. However, for bm|t, as a venture investor that, in addition to being performance-oriented, also has a strong motivation to see Thüringen’s economy prosper, we often view exits as merely the best next step in a company’s development. Indeed, these two June exits both occurred because it was the right time for the companies to join forces with strong corporate partners in order to advance to the next level.
In this Newsletter
EXIT, EXIT, Read All About It
HASEC, an EMS provider from Wutha-Farnroda, became a bm|t investee partner in 2011, and the company approximately doubled in size during the eight years of our partnership. The EMS industry has developed rapidly over the past decade and frequently customers are looking for providers with over 100 Mio. EUR in sales. Through excellent execution and the development of new, cutting-edge capabilities HASEC, even as a smaller EMS provider, was able to grow strongly in this environment of rising scale requirements.
It became increasingly clear that the company could take a huge leap forward and win customers of an entirely different category and size if it were to join forces with a larger player in the space. Scanfil Group, a Finnish publicly listed EMS provider with more than 500 Mio. EUR in sales, proved to be the perfect partner for HASEC. Not only can HASEC benefit from Scanfil’s sheer size but it will receive strong support, as Scanfil plans for HASEC to be its core location for the entire DACH region. We know that HASEC will prosper in many new and exciting ways.
Lynatox, an Ilmenau-based developer of air and water filtration technologies, with its proof-of-technology in hand, was ready for a strategic partner that could commercialize its technologies. bm|t had invested in 2017 with a focus on funding the technology development, and this milestone was achieved.
Diersch & Schröder, a family-owned business based in Bremen, was searching for unique technologies to enhance its Energy & Chemistry business unit, which is focused on protecting the essential resources of the future (clean air and water). It is a great match, and D&S will integrate Lynatox’s technology into its existing business unit, which will catalyze Lynatox’s market entrance and growth.
We are very pleased with these exits, especially because in both cases the companies will continue to grow and prosper in Thüringen and now with additional resources supporting them. We wish HASEC and Lynatox all the best for their future development and are thankful for the part of the journey that we shared with these great companies.
Your bm|t Team
Welcome to the Family
The Organ-on-a-Chip market is red hot, and Dynamic42 has developed many unique technologies to improve the results of studies involving synthetic organ systems to test drug toxicity and potency by better mimicking realistic human body conditions. The savings potential for pharma and biotech companies to test compounds in human-like conditions earlier and with significantly lower costs is enormous. This investment will allow for further technological progress, the development of additional organ models, as well as the deepening of projects with large pharma companies. For more details about Dynamic42 and this exciting new investment please read the following press release:
PaketIn has developed a cloud and app-based system for the management of parcel delivery boxes, which can, for example, be placed outside apartment buildings or homes in order to greatly reduce friction in the delivery and receiving of packages. Delivery services and apartment or home residents can simply open or lock the box doors using the app, and push notifications and status updates are easily seen on users’ smartphones. The variety of applications for PaketIn’s technology platform is extensive, and this investment will primarily fund expansion into additional markets.
Smartplatz’s market test in Erfurt demonstrated strong results and provided the basis for the company to develop a slightly modified model and expand to Leipzig as its second focus city. With strong buy-in from retailers looking for an easy and cost-effective way to combat the rise of online competitors, such as Amazon, Smartplatz is well positioned to succeed with its new model combining the ease of discovery of online shopping with the benefits of in-store experiences. This investment was made with a corporate co-investor and will support the rollout to multiple cities over the coming year.
Investor Days Thüringen 2019
Investor Days Thüringen 2019 was again a big success with over 500 participants and truly impressive pitches from more than 30 companies across a wide variety of sectors. Considering the excellent and varied pitches as well as the great workshops and lectures on the following day, there was something for everyone. A huge THANK YOU to all the presenters, attendees, and organizers for their important contributions to this fantastic event, which has become the premier investor event in middle Germany. We will be co-hosting Investor Days Thüringen again next year and will be sending out the save-the-date notifications soon. We look forward to seeing you again in Erfurt in 2020!