{"id":15978,"date":"2019-03-30T12:54:00","date_gmt":"2019-03-30T11:54:00","guid":{"rendered":"https:\/\/www.bm-t.de\/2023-en\/bmt-venture-insights-1-19-growing-businesses-vs-creating-value\/"},"modified":"2019-03-30T12:54:00","modified_gmt":"2019-03-30T11:54:00","slug":"bmt-venture-insights-1-19-growing-businesses-vs-creating-value","status":"publish","type":"post","link":"https:\/\/www.bm-t.de\/en\/2019-en\/bmt-venture-insights-1-19-growing-businesses-vs-creating-value\/","title":{"rendered":"bm|t Venture Insights 1\/19: Growing Businesses vs. Creating Value"},"content":{"rendered":"

In cer\u00adtain cir\u00adcum\u00adstances, expand\u00ading a busi\u00adness in the tra\u00addi\u00adtional sense can actu\u00adally limit value for a com\u00adpany whose technology\u2019s great\u00adest poten\u00adtial is as an enabler<\/strong>. An enabling tech\u00adnol\u00adogy is a tech\u00adnol\u00adogy that may have dif\u00adfi\u00adculty suc\u00adceed\u00ading in the mar\u00adket\u00adplace on a stand\u00adalone basis, but can sig\u00adnif\u00adi\u00adcantly increase the per\u00adfor\u00admance of another tech\u00adnol\u00adogy or com\u00adpany when combined.<\/p>\n

Com\u00adpa\u00adnies pos\u00adsess\u00ading enabling tech\u00adnolo\u00adgies must, of course, prove their tech\u00adnol\u00adogy is effec\u00adtive, per\u00adhaps through clin\u00adi\u00adcal tri\u00adals, beta cus\u00adtomers, or tech\u00adnol\u00adogy part\u00adner\u00adships. For these com\u00adpa\u00adnies, invest\u00ading heav\u00adily in sales efforts or grow\u00ading their geo\u00adgraphic foot\u00adprint may even be coun\u00adter\u00adpro\u00adduc\u00adtive. Often these com\u00adpa\u00adnies are well advised to focus the major\u00adity of their efforts on fur\u00adther devel\u00adop\u00ading their core tech\u00adnol\u00adogy<\/strong> and increas\u00ading its attrac\u00adtive\u00adness for inte\u00adgra\u00adtion into exist\u00ading prod\u00aducts as opposed to build\u00ading out a stand\u00adalone business.<\/p>\n

We believe that there is an inher\u00adent founder and investor bias toward \u201ccom\u00adpany build\u00ading\u201d, largely because that kind of progress is more eas\u00adily mea\u00adsured (sales, cus\u00adtomers, employ\u00adees), and both founders and investors can find it dif\u00adfi\u00adcult to rec\u00adog\u00adnize and prop\u00aderly assess progress that is less eas\u00adily mea\u00adsured<\/strong> (patents, new dis\u00adcov\u00ader\u00adies, advanced know-how, learn\u00adings from a test). At bm|t, we rec\u00adog\u00adnize this bias and work closely with founders to prop\u00aderly eval\u00adu\u00adate their unique oppor\u00adtu\u00adnity set to col\u00adlab\u00ado\u00adra\u00adtively reach an opti\u00admal out\u00adcome. This requires that the founders and investors share a vision and estab\u00adlish a trust that allows for pur\u00adsu\u00ading paths that might be less mea\u00adsur\u00adable but more value cre\u00adat\u00ading<\/strong>.<\/p>\n

Our appre\u00adci\u00ada\u00adtion for com\u00adpa\u00adnies with less mea\u00adsur\u00adable paths was recently rein\u00adforced<\/strong>, because two of our most suc\u00adcess\u00adful investee-part\u00adners did not gen\u00ader\u00adate sub\u00adstan\u00adtial rev\u00adenues but pos\u00adsessed tech\u00adnol\u00adogy that was so unique and highly pro\u00adtectable that the com\u00adpa\u00adnies dra\u00admat\u00adi\u00adcally increased their value with\u00adout sig\u00adnif\u00adi\u00adcantly expand\u00ading their busi\u00adness in the tra\u00addi\u00adtional sense.<\/p>\n

With our under\u00adly\u00ading goal of cat\u00adalyz\u00ading Th\u00fcringen\u2019s econ\u00adomy<\/strong>, bm|t invests across the full spec\u00adtrum of inno\u00adva\u00adtions \u2013 those that should indeed be the basis for large, stand\u00adalone enter\u00adprises as well as enabling tech\u00adnolo\u00adgies. What\u00adever each company\u2019s opti\u00admal path may be, we look for\u00adward to the shared journey.<\/p>\n

Your bm|t Team<\/em><\/p>\n

* Our use of the term value in this newslet\u00adter is intended to be inter\u00adpreted more broadly than sim\u00adply share\u00adholder value, as we appre\u00adci\u00adate that there are many aspects to value creation.<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

In cer\u00adtain cir\u00adcum\u00adstances, expand\u00ading a busi\u00adness in the tra\u00addi\u00adtional sense can actu\u00adally limit value for a com\u00adpany whose technology\u2019s great\u00adest poten\u00adtial is as an enabler. An enabling tech\u00adnol\u00adogy is a tech\u00adnol\u00adogy that may have dif\u00adfi\u00adculty suc\u00adceed\u00ading in the mar\u00adket\u00adplace on a stand\u00adalone basis, but can sig\u00adnif\u00adi\u00adcantly increase the per\u00adfor\u00admance of another tech\u00adnol\u00adogy or com\u00adpany when combined. [\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":[148,250],"tags":[253],"class_list":["post-15978","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-2019-en","category-insights","tag-insights-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts\/15978","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=15978"}],"version-history":[{"count":0,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/posts\/15978\/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=15978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/categories?post=15978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bm-t.de\/en\/wp-json\/wp\/v2\/tags?post=15978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}