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bm|t newsletter Q2 2023

As an invest­ment firm man­dated with gen­er­at­ing returns and play­ing a con­trib­u­tory role in the devel­op­ment of Thüringen’s econ­omy, it is prob­a­bly not sur­pris­ing that we at bm|t think of our­selves as respon­si­ble investors. Due to our extremely high mar­ket share of ven­ture invest­ments in Thürin­gen, we feel a large respon­si­bil­ity toward the entire inno­va­tion ecosys­tem in Thürin­genand are ded­i­cated to con­tribut­ing to that ecosys­tem in a pos­i­tive way with every invest­ment we make.

In this Newsletter 

The Responsibility of Venture Investing

In our view, being a respon­si­ble investor means believ­ing that we owe some­thing far beyond our cap­i­tal com­mit­ment to the com­pa­nies in which we are invested. It means we will strive and fight for their suc­cess while always act­ing with integrity. Clas­si­cally, we con­tribute more than cap­i­tal to our Investee-Part­ners by using our net­work and other resources to ben­e­fit them as much as pos­si­ble. More specif­i­cally, respon­si­ble invest­ing can also mean com­mu­ni­cat­ing clearly, trans­par­ently, and hon­estly with our val­ued co-investors and Investee-Part­ners and proac­tively inform­ing them of our abil­ity and will­ing­ness to par­tic­i­pate in future fundraisings.

Although some may argue that pri­vate investors have the right to view their invest­ments sim­ply in a trans­ac­tional way, we strongly believe that, espe­cially in the early stages, when com­pa­nies are still in the process of find­ing their best path and each investor is of extreme impor­tance, all investors should have some sense of addi­tional com­mit­ment to fur­ther assist the com­pa­nies in which they are invested. It is surely true that the best way for an investor to ensure a strong finan­cial return in early-stage invest­ments, where the bulk of value cre­ation lies in the future, is to coop­er­a­tively con­tribute value to the company.

The def­i­nite actions that an investor can take to con­tribute to their ven­ture invest­ments vary greatly depend­ing on the com­pany and investor. How­ever, at a min­i­mum, early-stage investors should have a will­ing­ness to open their net­work to the com­pany and effi­ciently and cor­rectly process all documentation/voting require­ments with­out play­ing any unnec­es­sary games.

Impor­tantly, being a respon­si­ble investor in a com­pany does not mean that an investor agrees with all of management’s deci­sions or that valu­able crit­i­cism is with­held. Exactly the oppo­site is true, because engage­ment is the pre­req­ui­site for con­struc­tive con­tri­bu­tion, and engage­ment means sort­ing through the var­i­ous ini­tia­tives and chal­lenges with a dis­cern­ing eye in order to assist the com­pany in achiev­ing its ulti­mate goals.

In Thürin­gen we are extremely for­tu­nate to have attracted pri­vate investors who under­stand invest­ing is a two-way street. The nature of our high-tech B2B com­pa­nies means that it is clear from the begin­ning of the rela­tion­ship between com­pany and investor that this is a mar­riage and not just a fling. This mar­riage takes dili­gent work from both sides, as excep­tional cor­po­rate devel­op­ment and expo­nen­tial invest­ment returns are only attain­able with con­tri­bu­tions from all.

We are grate­ful to have a clear man­date to be a respon­si­ble investor and we look for­ward to con­tin­u­ing to make mutu­ally-ben­e­fi­cial matches between other like-minded investors and our out­stand­ing Investee-Part­ners for the ben­e­fit of all involved.

Your bm|t Team

Follow-on Investments

Although our cur­rent fund man­dates did not per­mit us to invest in this cap­i­tal raise, it is always note­wor­thy when a bm|t Investee-Part­ner raises 46 Mio. USD, as InflaRx did this quar­ter. This cap­i­tal ensures that InflaRx will be able to fund its piv­otal phase III clin­i­cal trial for PG through to final data release and beyond. We remain a sig­nif­i­cant share­holder and con­tinue to have high aspi­ra­tions for InflaRx and the company’s first-in-class com­pound IFX‑1 across mul­ti­ple dis­eases. This quar­ter InflaRx also received FDA emer­gency use autho­riza­tion for IFX‑1 for the treat­ment of crit­i­cally ill COVID-19 patients, which is an impor­tant mile­stone for the company.

For more details please read the full press releases about the cap­i­tal raise and the FDA autho­riza­tion.

The Organ-on-a-Chip mar­ket remains red hot, and Dynamic42 has devel­oped many unique tech­nolo­gies to improve the results of pre­clin­i­cal stud­ies involv­ing minia­tur­ized 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 ear­lier in human-like con­di­tions and with sig­nif­i­cantly lower costs is enor­mous. bm|t led this mid-seven-fig­ure break­through invest­ment round focused on broad­en­ing the company´s IP port­fo­lio, the devel­op­ment of addi­tional organ mod­els, as well as on inten­si­fy­ing many sig­nif­i­cant projects and busi­ness links with large pharma com­pa­nies. We were joined by a per­fectly-suited fam­ily office with exten­sive expe­ri­ence in the pharma space.

For more details please read the full press release.

Pre­ci­Point has cre­ated a highly-inno­v­a­tive suite of prod­ucts and ser­vices for dig­i­tal microscopy and is poised for explo­sive growth as it enters the intra­op­er­a­tive diag­nos­tics mar­ket after per­fect­ing its craft in the research mar­ket. 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 mid-seven-fig­ure Series A2 invest­ment round was raised from a VC fund, mul­ti­ple fam­ily offices and busi­ness angels. The cap­i­tal will fund PreciPoint’s entry into the intra­op­er­a­tive oncol­ogy mar­ket, for which the com­pany recently achieved cer­ti­fi­ca­tion for its inno­v­a­tive iO:M8 prod­uct in Europe and the US.

siOP­TICA is a lead­ing devel­oper and sup­plier of switch­able screen pri­vacy-fil­ter tech­nol­ogy with many appli­ca­tions in auto­mo­tive dis­plays, lap­tops, tablets, mobile phones, and pay­ment ter­mi­nals. Data pri­vacy is an extremely impor­tant topic, and siOP­TICA is well-posi­tioned to play an instru­men­tal role in rev­o­lu­tion­iz­ing screen-based data pri­vacy solu­tions. The com­pany recently achieved a sig­nif­i­cant tech­no­log­i­cal mile­stone, which greatly enhances the smart­phone and lap­top oppor­tu­nity. bm|t led this seven-fig­ure round focused on mar­ket launch, and we were joined by two new well-suited investors.

Investor Days Thüringen – Recap

This year’s Investor Days Thürin­gen (IDT) was a smash­ing suc­cess and was even more inter­est­ing due to the mul­ti­ple loca­tions in Erfurt, with Day 2 tak­ing place in the desert and rain­for­est exhibit at the EGA Park under the motto “Nav­i­gat­ing the Investor Jun­gle”. Over 400 par­tic­i­pants were treated to excel­lent pitches from 39 inno­v­a­tive start-ups and scale-ups dur­ing the two-day event. Another high­light was the keynote address about prof­itable, sus­tain­able invest­ing from Georg Schuer­mann, Head of Tri­o­dos Bank in Ger­many. As always it was won­der­ful to wel­come many new and active par­tic­i­pants to our thriv­ing inno­va­tion invest­ment ecosys­tem here in Thüringen.

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. 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 from our 2023 Photo Gallery.

Pho­tos: Thomas Müller

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!

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