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bm|t newsletter Q2 2022

As hope for a quick end to the war in the Ukraine has sadly evap­o­rated, and the pro­found and dam­ag­ing impacts on many lev­els are being digested by investors, there has been a flurry of fore­bod­ing and warn­ings in the startup/venture cap­i­tal space. There can also be no doubt that in light of the mount­ing direct effects and deriv­a­tive effects of this war, includ­ing of course an increase in investor risk-aver­sion, pru­dence and cau­tion are replac­ing risk and bold­ness as the memes that are cur­rently shap­ing our ecosys­tem.  Indeed many of the most recent sta­tis­tics show that a slow­down in deal activ­ity is arriving. 

In this Newsletter 

The Times, They Are a Changing

We at bm|t  have also joined the ranks of many (if not all) VCs in com­mu­ni­cat­ing clearly about this changed envi­ron­ment to our Investee-Part­ners and work­ing closely with them to assess appro­pri­ate steps and the best paths for­ward. How­ever, we cer­tainly should all remain cog­nizant not to let fear itself pre­vent us from achiev­ing impact­ful progress and con­vert­ing on value-cre­at­ing oppor­tu­ni­ties. In many ways we feel some­what (although cer­tainly not entirely) insu­lated from the imme­di­ate dif­fi­cul­ties many are expe­ri­enc­ing and believe that the start-up ecosys­tem in Thürin­gen will, for many rea­sons, prove to be quite robust rel­a­tive to other inno­va­tion invest­ment ecosys­tems. Firstly, we have not rid­den the big ven­ture wave of the last 10–15 years so high as most of the well-known inno­va­tion geo­gra­phies. The val­u­a­tions and the round sizes never over-extended so that the often exis­ten­tial threat of larger down-rounds is not pro­nounced here. Sec­ondly, the Thürin­gen inno­va­tion ecosys­tem is very focused on B2B mar­kets such that large mar­ket­ing expen­di­tures, that may now prove to have much lower impact than was orig­i­nally planned, are nearly non-exis­tent. Fur­ther­more, the region´s focus on deep-tech gen­er­ally has been accom­pa­nied by longer-term plan­ning and con­ser­v­a­tive, largely tech­no­log­i­cal-mile­stone-based cor­po­rate devel­op­ment, so that very few com­pa­nies are caught off-bal­ance by the recent macro devel­op­ments. With gen­er­ally smaller financ­ing rounds (due to lower burn-rates) focused largely on value-cre­at­ing tech­no­log­i­cal devel­op­ments, which often have a spe­cial strate­gic appeal to longer-term focused investors (includ­ing fam­ily offices and cor­po­rates), we believe Thüringen´s top inno­v­a­tive com­pa­nies will con­tinue to receive the nec­es­sary fund­ing to progress and grow in most cases. In fact, as you can read in this Newslet­ter, our Investee-Part­ners closed sev­eral seven-fig­ure plus rounds in Q2 – a strong val­i­da­tion of this view. We would like to con­clude with an impor­tant acknowl­edg­ment: no mat­ter the state of the world, and in some cases dri­ven even faster by tur­bu­lence, the need for inno­va­tion in order to con­tinue to advance human­ity and pro­tect the planet will remain extremely high. In this essen­tial way, the more things change, the more they stay the same! Your, con­tin­u­ing to push for­ward, bm|t Team

Welcome to the Family

Jena based Coach­whis­perer GmbH offers the world’s first live com­mu­ni­ca­tion and mon­i­tor­ing sys­tem for coaches and ath­letes, con­sist­ing of an inno­v­a­tive com­bi­na­tion of hard­ware and soft­ware that allows coaches to seam­lessly com­mu­ni­cate with any selec­tion of play­ers dur­ing live train­ing while mon­i­tor­ing player vital signs and sta­tis­tics. Due to the company´s highly-inno­v­a­tive wear­able sen­sors, in many ways Coach­whis­perer is a com­bi­na­tion of a med-tech com­pany and a sports-tech com­pany. Coach­whis­perer will launch shortly in Euro­pean Foot­ball, where the founders pos­sess an excel­lent net­work, and will then quickly expand to other sports, and com­pelling appli­ca­tions out­side of sports are also part of the planned growth over the com­ing years. bm|t led this seven-fig­ure round focused on final­iz­ing the next-gen­er­a­tion tech and ini­tial mar­ket entry. For more details about this excit­ing invest­ment please read this press release.

Follow-on Investments

Pre­ci­Point has cre­ated a highly-inno­v­a­tive suite of prod­ucts and ser­vices for dig­i­tal microscopy and is poised for explo­sive growth as it enters the clin­i­cal lab­o­ra­tory and intra­op­er­a­tive diag­nos­tics mar­ket after per­fect­ing its craft in the research mar­ket. Amaz­ingly, today still over 90% of pathol­ogy slide analy­sis is per­formed ana­log – humans peer­ing through the clas­sic micro­scope, mak­ing an eval­u­a­tion, and record­ing the data. PreciPoint´s afford­able dig­i­tal micro­scope starts with high-res­o­lu­tion dig­i­tal image cap­ture, which opens many oppor­tu­ni­ties for addi­tional value cre­ation through algo­rith­mic analy­sis and easy data trans­fer, thus break­ing the restric­tions of phys­i­cal loca­tion for, at times life-sav­ing, inter­pre­ta­tion of the data. This break­through eight-fig­ure Series A invest­ment round was raised from bm|t, mul­ti­ple fam­ily offices and busi­ness angels. The cap­i­tal will fund PreciPoint´s entry into the lab­o­ra­tory and intra­op­er­a­tive mar­kets and posi­tions the com­pany extremely well for rapid growth. For more details about this break­through invest­ment please read this press release.
With clin­ics across seven coun­tries, neu­ro­Care group is quickly becom­ing a lead­ing global care deliv­erer in the men­tal health space. Through its Dig­i­tal Ther­a­peu­tics Plat­form, the com­pany pos­sesses an impres­sive (and in many areas world-lead­ing) hard­ware and soft­ware tech stack, which it also sells to third-party clin­ics. neu­ro­Care is now in an aggres­sive growth phase, on track to dou­ble its owned clin­ics from 20 to 40 this year alone. bm|t led this seven-fig­ure growth invest­ment and was joined by two addi­tional insti­tu­tional investors. The com­pany will use the cap­i­tal for acqui­si­tions, addi­tional green­field clin­ics, and strength­en­ing its dig­i­tal ther­a­peu­tics plat­form in order to add even more effi­ciency and capa­bil­i­ties to the company’s lead­ing treat­ment options for men­tal health. 
Nine out of ten strokes are preventable. Pre­ven­ti­cus devel­ops tech­nolo­gies and man­aged care pro­grams that make pre­vent­ing these strokes more achiev­able every day. The company’s pro­pri­etary, best-in-class tech­nol­ogy uses pulse sig­nals to screen and mon­i­tor car­dio­vas­cu­lar dis­or­ders (e.g. atrial fib­ril­la­tion) using smart­phones and wear­ables. The com­pany has fur­ther evolved into a spe­cial­ized man­aged care com­pany by uti­liz­ing its core tech­nol­ogy, a com­pre­hen­sive IT ecosys­tem and con­nected care ser­vices with the involve­ment and con­nec­tion of health insur­ers, tele­care cen­ters, and car­di­ol­o­gists. This seven-fig­ure round was led by pri­vate investors with par­tic­i­pa­tion from HTGF and bm|t. This growth financ­ing is focused on expand­ing capac­ity to onboard large num­bers of users/patients, as Pre­ven­ti­cus is now fully approved to pro­vide its entire solu­tion set in Ger­many and is rapidly adding customers. 
Vision2B has devel­oped the dig­i­tal health plat­form mebix focused on help­ing peo­ple man­age dis­ease more eas­ily and effec­tively by pro­vid­ing valu­able information/feedback, increas­ing com­pli­ance with pre­scribed reg­i­mens, and facil­i­tat­ing physi­cian-patient inter­ac­tions. The com­pany is ini­tially focused on two large cat­e­gories with high costs for soci­ety: dia­betes and heart dis­ease, and will be rolling out addi­tional indi­ca­tions in the future. The dig­i­tal health space, aided by new sup­port­ive reg­u­la­tion and reim­burse­ment path­ways in Ger­many, is boom­ing. Vision2B sets itself apart from com­peti­tors through excel­lent clin­i­cal results in a rig­or­ous, third-party admin­is­tered trial and the strength of its plat­form, which has been devel­oped over many years. bm|t led this nearly seven-fig­ure invest­ment round focused on fur­ther­ing Vision2B´s strong clin­i­cal data and enabling rapid mar­ket entry. 
Red­wave Med­ical is focused on cre­at­ing med­ical algo­rithms that improve patient care. The company´s first approved and mar­keted prod­uct is Antares, an algo­rithm that con­verts data gleaned from the mea­sure­ment of periph­eral blood pres­sure to a reli­able esti­mate of cen­tral (aor­tic) blood pres­sure, which is much more rel­e­vant for a person´s health and treat­ment. In this field, Red­wave has entered into mul­ti­ple com­mer­cial part­ner­ships with blood pres­sure mon­i­tor­ing com­pa­nies. Red­wave also pos­sesses a com­pelling pipeline of fur­ther life-improv­ing bio­met­ric algo­rithms. bm|t led this invest­ment focused on onboard­ing addi­tional top part­ners, mar­ket expan­sion, fur­ther prod­uct devel­op­ment and plac­ing the com­pany in an excel­lent posi­tion head­ing into its upcom­ing Series A round. 
Hey­fair’s vision is to rad­i­cally improve the use of hand dis­in­fec­tant by mak­ing the appli­ca­tion and cov­er­age vis­i­ble to the user and oth­ers. The com­pany pos­sesses strong IP around the addi­tion of a spe­cial dye that makes hand dis­in­fec­tant appear col­or­fully when applied and sub­se­quently the color com­pletely dis­ap­pears. Mak­ing the com­plete­ness (or lack thereof) of hand dis­in­fec­tant appli­ca­tion vis­i­ble helps to ensure that med­ical staff suf­fi­ciently dis­in­fect between each encounter with a patient. With the rise of antibi­otic-resis­tant germs, it is imper­a­tive that med­ical prac­ti­tion­ers have a tool to vis­i­bly ver­ify and incen­tivize their actions to min­i­mize the spread of dis­ease in their hos­pi­tals and clin­ics. With this invest­ment from bm|t and mul­ti­ple expe­ri­enced busi­ness angels Hey­fair is well posi­tioned to achieve its mis­sion of rein­vent­ing hand sanitation. 
Every­one knows that you do not make money with print­ers; you make it with the ink (con­sum­ables). Ilme­nau-based Lean Plas­tics believes that the same phe­nom­e­non will play out in 3D print­ing and has con­se­quently focused on opti­miz­ing plas­tic con­sum­ables for 3D print­ing. The com­pany already has a strong cor­po­rate investor with excel­lent exper­tise in the field of 3D print­ing, and we are extremely opti­mistic that Lean Plas­tics will play a sig­nif­i­cant, and highly-prof­itable, role in the addi­tive man­u­fac­tur­ing rev­o­lu­tion. With this invest­ment round Lean Plas­tics will deliver many high-value orders, final­ize com­mer­cial scal­a­bil­ity, and be well-posi­tioned for its upcom­ing Series A round. 

Investor Days Thüringen 2022

This year´s Investor Days Thürin­gen (IDT) was a smash­ing suc­cess and for the over 500 par­tic­i­pants the event felt more like a cathar­tic cel­e­bra­tion (finally com­ing together in per­son again after three years) than a pitch event.  Since the last live IDT, the num­ber of our val­ued Investee-Part­ners and Co-Investors has grown over 30%, and it was won­der­ful to wel­come many new and active par­tic­i­pants to our thriv­ing inno­va­tion invest­ment ecosys­tem here in Thürin­gen.  This year for the first time and due to our bur­geon­ing life sci­ence port­fo­lio, we had a ded­i­cated life sci­ences stream and part­nered with Med­ways, the lead­ing asso­ci­a­tion of med-tech and biotech com­pa­nies in Thürin­gen, who hosted their annual Future Con­fer­ence in com­bi­na­tion with IDT. A huge THANK YOU to all the spon­sors, pre­sen­ters, atten­dees, and orga­niz­ers for their impor­tant con­tri­bu­tions to this fan­tas­tic event, which has become the pre­mier investor event in mid­dle Ger­many.  As usual, the pitch­ers, pre­sen­ters, and hosts sim­ply stole the show with extremely strong and enter­tain­ing per­for­mances. In case you missed this year´s IDT, you can get a feel for the event (and what will be await­ing you next year) here: https://investordays-thueringen.de/en/spotlight-on-innovation-investor-days-thuringia-pm2/ We hope you will join us again next year, as we aim to con­tinue to raise the bar with each iter­a­tion of Investor Days Thürin­gen! Save-the-date notices will be com­ing soon! 
Photo: Markus Schlevogt