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bm|t newsletter Q2 2018

Wel­come to our sec­ond quar­terly bm|t newslet­ter. If you are receiv­ing this newslet­ter via email, you suc­cess­fully par­tic­i­pated in the GDPR com­pli­ance spec­ta­cle – thank you for your under­stand­ing. If you have part­ners or col­leagues who are inter­ested in a reg­u­lar bm|t update, don’t hes­i­tate to share this link.

In this Newsletter 

TRUST Isn’t a Four-Letter Word

While recently in Berlin meet­ing with investors we were engaged in an inter­est­ing dis­cus­sion about Ini­tial Coin Offer­ings (ICOs).  Our con­ver­sa­tional coun­ter­party, an early-stage pri­vate investor, was advo­cat­ing how great it would be if all invest­ments had trade­able, blockchain-based tokens, and there­fore the annoy­ing prob­lem with illiq­uid­ity could be solved. We under­stand the sen­ti­ment behind this think­ing, but believe it focuses too nar­rowly on avoid­ing the neg­a­tive effects of a lack of trust and not ade­quately on the pos­i­tive effects of the pres­ence of trust.

Trust and Commitment are Critical Success Factors

An impor­tant con­cept behind blockchain / decen­tral­ized ledgers is that one can elim­i­nate the need for direct coun­ter­party trust in envi­ron­ments where trust can be dif­fi­cult to estab­lish. For exam­ple, estab­lish­ing trust between par­ties that may have never inter­acted with each other prior to con­sum­mat­ing a trans­ac­tion and when there is a low like­li­hood of repeat trans­ac­tions between the par­ties. There are sit­u­a­tions where the abil­ity to remove the need for trust from the equa­tion can be extremely ben­e­fi­cial. How­ever, in our métier of ven­ture cap­i­tal and pri­vate equity, we believe that trust and com­mit­ment are actu­ally crit­i­cal suc­cess fac­tors that can­not be out­sourced to a face­less, decen­tral­ized network.

At bm‑t we have recently recom­mit­ted our­selves to work­ing dili­gently to be the part­ner-of-choice for our investee-part­ners. This part­ner­ship mind­set orig­i­nates from a deep belief that when entre­pre­neurs and investors work coop­er­a­tively and openly with a com­mon goal that out­stand­ing results can stem from this deep trust and mutual understanding.

We at bm|t do not invest in business plans; we invest in entrepreneurs.

In essence, we aim to find busi­ness­peo­ple who we trust will find a way to cre­ate value even when plan A, B, or C does not mate­ri­al­ize as orig­i­nally envi­sioned. We strongly believe that entre­pre­neurs should also cul­ti­vate and value this trust, which is accom­pa­nied by many pos­i­tive attrib­utes for peo­ple and com­pa­nies with big ambi­tions – such as patience, coop­er­a­tion, com­mit­ment, and a co-war­rior mentality.

Indeed, in our view, entre­pre­neurs should be very wary of the siren songs of ICOs, instant liq­uid­ity, and not hav­ing to deal directly with pesky investors, as those investors are exactly the ones who are most likely to sup­port com­pa­nies when changes to the busi­ness plan become nec­es­sary or in moments when a cat­e­gory falls out of favor with the crowd.

We at bm|t are work­ing con­cert­edly to cre­ate an envi­ron­ment of mutual trust by com­mu­ni­cat­ing pro-actively and trans­par­ently with our Investee-Part­ners; and we highly value that same com­mu­ni­ca­tion in return. We view trust as a valu­able long-term asset that can pro­duce great div­i­dends, not some­thing to be outsourced.

Your Com­mit­ted to Trust bm‑t Team

Investor Days Thüringen

Investor Days Thürin­gen was a suc­cess­ful event again this year, with record investor atten­dance and over 80 com­pa­nies pre­sent­ing their sto­ries. Only time will tell which com­pa­nies from this year’s class of pre­sen­ters will be dis­cussing a sale to a social media giant or a Nas­daq IPO as a keynote speaker at future events.

We, and the guests from whom we received feed­back, were very impressed by the poise of the pre­sen­ters and the high level of cor­po­rate sub­stance on dis­play. We, in Thürin­gen, are still fly­ing a bit stealth­ily, but we are appear­ing on the radar of more investors and look for­ward to wel­com­ing even more first-time guests next year at Investor Days Thüringen.

We will be set­ting the date for the event soon, so please watch your inboxes and our › LinkedIn Page and › Xing pages for details.

Welcome to the Family

APP­solute Mobility’s two man­ag­ing founders, Vic­to­ria von Wach­tel and Alexan­dra Kul­fanová, real­ized early on that app cre­ation could be made so easy and con­fig­urable that more com­pa­nies would start to design and pub­lish their own apps for inter­nal and exter­nal busi­ness process opti­miza­tion. To enable this self-ser­vice, APP­solute Mobil­ity has con­structed a highly-intu­itive and flex­i­ble app-devel­op­ment environment.

The soft­ware plat­form is out­stand­ing, and we were very impressed with the founders, as they had already gen­er­ated sub­stan­tial rev­enues and pos­sess a great roadmap for scal­ing the pure license por­tion of their busi­ness model. There are some big com­pa­nies com­pet­ing in the space, but with the right com­bi­na­tion of per­son­al­ized solu­tions and scal­able soft­ware, we know › APP­solute Mobil­ity has a lot of head­room for prof­itable growth.

We are look­ing for­ward to work­ing with APP­solute Mobil­ity to enable com­pa­nies to use self-ser­vice App devel­op­ment to improve cor­po­rate performance.

Q2 2018 Investment Rounds

InflaRx raises another $ 63 Mio in pri­mary shares

InflaRx (Nas­daq: IFRX) and cur­rent share­hold­ers placed $ 117,3 Mio. of shares, with $ 63 Mio. as pri­mary shares with the pro­ceeds going to InflaRx and $ 54 Mio. as sec­ondary shares with the pro­ceeds going to early share­hold­ers, who all remain invested in InflaRx.

InflaRx intends to use of pro­ceeds from the cap­i­tal raise to finance the fur­ther clin­i­cal devel­op­ment of its lead can­di­date IFX‑1, which is cur­rently in Phase IIb.  The ther­apy is being tri­aled on patients with mod­er­ate to advanced Hidradeni­tis Sup­pu­ra­tiva (HS), which is a painful and chronic inflam­ma­tory skin dis­ease with lim­ited treat­ment options.  Fur­ther­more, the com­pound is going to be tested in two phase II tri­als for addi­tional auto-immune and inflam­ma­tion indications.

read more ›

ifesca closes Series A financ­ing with another EUR1.5 mil­lion investment

ifesca opened its Series A financ­ing round about six months ago and quickly secured 1 mil­lion EUR in the first clos­ing. In the sec­ond clos­ing, a fur­ther 1.5 mil­lion EUR was raised.  The total of 2.5 mil­lion EUR will enable the com­pany to fur­ther grow and inter­na­tion­al­ize its ifesca.AIVA plat­form. bm‑t was the lead investor in the Series A financ­ing and was accom­pa­nied by mul­ti­ple pri­vate investors.

The intel­li­gent cloud ser­vice of ifesca.AVIA, enables energy com­pa­nies to bet­ter fore­cast future demand for elec­tric­ity, gas, or heat in near real time.  These insights allow energy com­pa­nies to make bet­ter deci­sions regard­ing their own gen­er­a­tion oper­a­tions and/or energy trading.

read more ›

Nanopar­ti­cles for life-sav­ing therapies

The Stiftung für Tech­nolo­gie, Inno­va­tion und Forschung Thürin­gen (STIFT) and the Sparkasse Jena-Saale-Hol­z­land invest in an inno­v­a­tive ther­a­peu­tics com­pany in Jena.

Smart­Dye­Liv­ery, in Jena, uses nanopar­ti­cles to direct ther­a­peu­tic com­pounds directly to tar­geted organs.  With a patented tech­nol­ogy based on func­tional nanopar­ti­cles, Smart­Dye­Liv­ery con­vinced the STIFT to join the Sparkasse Jena-Saale-Hol­z­land, which increased its invest­ment, and bm|t as key insti­tu­tional share­hold­ers, in the aspir­ing biotech­nol­ogy company.

read more ›

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