{"id":15968,"date":"2020-03-30T12:05:54","date_gmt":"2020-03-30T10:05:54","guid":{"rendered":"https:\/\/www.bm-t.de\/2023-en\/bmt-venture-insights-1-20-venture-investing-in-the-time-of-corona\/"},"modified":"2020-03-30T12:05:54","modified_gmt":"2020-03-30T10:05:54","slug":"bmt-venture-insights-1-20-venture-investing-in-the-time-of-corona","status":"publish","type":"post","link":"https:\/\/www.bm-t.de\/en\/2020-en\/bmt-venture-insights-1-20-venture-investing-in-the-time-of-corona\/","title":{"rendered":"bm|t Venture Insights 1\/20: Venture Investing in the Time of Corona"},"content":{"rendered":"

An exoge\u00adnous shock, and Covid-19 cer\u00adtainly is a large one, cre\u00adates a high degree of unfore\u00adseen uncer\u00adtainty<\/strong> for com\u00adpa\u00adnies and investors alike. Invest\u00adments that are con\u00adtin\u00adu\u00adously marked to mar\u00adket show sharp and extreme losses, and investors with poten\u00adtial liq\u00aduid\u00adity are forced to think about the appear\u00adances of short-term per\u00adfor\u00admance. These investors often feel com\u00adpelled to make deci\u00adsions regard\u00ading their invest\u00adments that are dri\u00adven by fac\u00adtors that only weeks or months prior played no role<\/strong> in their invest\u00adment think\u00ading and may not be related to long-term per\u00adfor\u00admance optimization.<\/p>\n

Of course, ven\u00adture cap\u00adi\u00adtal and pri\u00advate equity investors must not lull them\u00adselves into think\u00ading that because their invest\u00adments have not suf\u00adfered vis\u00adi\u00adble price declines that there has not been an equal, or greater, value impact on their port\u00adfo\u00adlios. Indeed there has been great value destruc\u00adtion for nearly all com\u00adpa\u00adnies<\/strong> due to this exoge\u00adnous event. Cer\u00adtainly, the vast major\u00adity of early-stage ven\u00adture-backed com\u00adpa\u00adnies have less finan\u00adcial cush\u00adion (on their own bal\u00adance sheets) to weather longer storms than most pub\u00adlicly-traded com\u00adpa\u00adnies. How\u00adever, it is pre\u00adcisely because ven\u00adture investors are focused on invest\u00adments with at least a seven-year time hori\u00adzon<\/strong> (and in many cases much longer), and gen\u00ader\u00adally have com\u00admit\u00adted cap\u00adi\u00adtal to invest, that they are able to main\u00adtain a strong focus on com\u00adpany- and indus\u00adtry-spe\u00adcific fac\u00adtors and on cre\u00adat\u00ading value over the long term.<\/p>\n

This long-term invest\u00adment phi\u00adlos\u00ado\u00adphy per\u00admits a healthy level of calm\u00adness<\/strong> in the midst of storms, and enables ven\u00adture investors to make impor\u00adtant and nec\u00ades\u00adsary adjust\u00adments while main\u00adtain\u00ading a course designed to profit over years not months.<\/p>\n

An extremely crit\u00adi\u00adcal ele\u00adment for investors to tra\u00adverse crises and to reap the ben\u00ade\u00adfits of long-term invest\u00ading is hav\u00ading com\u00admit\u00adted fund\u00ading <\/strong>with\u00adout the risk of lim\u00adited part\u00adners (fund investors) reneg\u00ading on their com\u00admit\u00adments. bm|t\u2019s early stage funds (Th\u00fcringer Startup Fonds and Th\u00fcringer Wach\u00ads\u00adtums\u00adbeteili\u00adgung Fonds) are com\u00adprised of 80% fund\u00ading from the Euro\u00adpean Union and 20% fund\u00ading from the Free State of Th\u00fcrin\u00adgen, and are fully com\u00admit\u00adted from these strong part\u00adners from day one of the funds\u00b4 existence.<\/p>\n

bm|t\u2019s funds do have con\u00addi\u00adtions requir\u00ading pri\u00advate co-invest\u00adment, which does reduce our abil\u00adity to act alone. How\u00adever, this con\u00addi\u00adtion has led to the estab\u00adlish\u00adment of a strong net\u00adwork of like-minded pri\u00advate co-investors<\/strong> that bring addi\u00adtional strength to sup\u00adport our Investee-Part\u00adners in dif\u00adfi\u00adcult times.<\/p>\n

The ben\u00ade\u00adfits of this extremely sta\u00adble cap\u00adi\u00adtal base and strong co-investor net\u00adwork have become starkly appar\u00adent in this time of cri\u00adsis, as we have gen\u00ader\u00adally been able to main\u00adtain our funds\u2019 phi\u00adlos\u00ado\u00adphy<\/strong> and activ\u00adity in these chal\u00adleng\u00ading times. Star\u00adtupdec\u00adtor ranked bm|t\u2019s early stage funds (Stiftung Th\u00fcringer Beteili\u00adgungskap\u00adi\u00adtal) as the third most active startup investor in Ger\u00admany for Q1 2020<\/em>.*<\/a><\/p>\n

We aim to con\u00adtinue to be a reli\u00adable and trans\u00adpar\u00adent investor for our Investee-Part\u00adners at all times<\/strong>, but are espe\u00adcially pleased that we have been able to main\u00adtain our role and invest\u00adment phi\u00adlos\u00ado\u00adphy in these dif\u00adfi\u00adcult times.<\/p>\n

Wish\u00ading you health, strength and fore\u00adsight in these try\u00ading times,<\/em>
\nYour bm|t Team<\/em><\/p>\n

* https:\/\/lnkd.in\/diYU7eN<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

An exoge\u00adnous shock, and Covid-19 cer\u00adtainly is a large one, cre\u00adates a high degree of unfore\u00adseen uncer\u00adtainty for com\u00adpa\u00adnies and investors alike. Invest\u00adments that are con\u00adtin\u00adu\u00adously marked to mar\u00adket show sharp and extreme losses, and investors with poten\u00adtial liq\u00aduid\u00adity are forced to think about the appear\u00adances of short-term per\u00adfor\u00admance. These investors often feel com\u00adpelled to make decisions [\u2026]<\/p>\n","protected":false},"author":2,"featured_media":15567,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"wp_typography_post_enhancements_disabled":false,"footnotes":""},"categories":[149,250],"tags":[253],"class_list":["post-15968","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2020-en","category-insights","tag-insights-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts\/15968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/comments?post=15968"}],"version-history":[{"count":0,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts\/15968\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/media\/15567"}],"wp:attachment":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/media?parent=15968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/categories?post=15968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/tags?post=15968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}