bm|t newsletter Q3 2018
Welcome to bm|t’s Q3 newsletter at the end of a record-breaking quarter for investment activity. If your partners or colleagues might be interested in our regular updates, please don’t hesitate to share this link.
In this Newsletter
Wheeling and Dealing
The title of this quarter’s newsletter is not meant in the usual sense of loose transacting. In fact, quite to the contrary. ›Wheeling and dealing‹ just perfectly describes bm|t’s activities in Q3. Wheeling, in the sense that we crisscrossed Thüringen and indeed Germany even more than usual this quarter, working with our valued current investee partners to build successful businesses and identifying and gaining new investee partners. Dealing, in the sense that we closed 14 deals in the quarter, which constitutes a record quarter of investment activity for bm|t. This year, the classic summer lull (Sommerloch) turned into a summer fountain of compelling investments.
We will omit our traditional philosophical investing commentary this quarter, so we can focus your valued attention exclusively on our many important investments of the quarter. We hope you enjoy the quick reads about the companies as much as we did closing the investments!
Welcome to the Family
We made our first ever investment outside of Thüringen this quarter. Our Mittelstandsfonds Thüringen (MFT) allows for a portion of the fund to be invested outside of Thüringen, and we decided to employ this option for a truly exceptional investment. c‑LEcta is a world-leading Leipzig-based enzyme development company, which raised a sizeable investment round in order to complete its evolution from an enzyme research and engineering company to developing and commercializing its own enzyme-based products. We are extremely impressed by the breadth and depth of the management team, the clear vision and direction of the company, and the large potential of the company’s proprietary food and nutritional enhancement products. We could not be more pleased to be a co-investor with Capricorn Venture Partners from Belgium in this very high-potential investment.
Heyfair’s vision is to radically improve the use of hand disinfectant by making the coverage visible to the user and others. The company has strong IP around the addition of a special dye that makes hand disinfectant appear colorfully when applied and subsequently the color completely disappears within two minutes of application. 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 super bugs, it is imperative that medical practitioners have a tool to visibly verify and coerce their actions to minimize the spread of disease in their hospitals and clinics. With this investment from bm|t and multiple experienced business angels with ideal backgrounds to help Heyfair bring its product to market, Heyfair is well on its way to reinventing hand sanitation.
Inter¦cus is a highly innovative designer and manufacturer of traumatology solutions. The traumatology market is attractive, generally carrying even higher gross margins than the orthopedics market, but it is also highly competitive with several large players controlling a significant percentage of the global market. Importantly, over 15 years Inter¦cus has repeatedly proven its ability to develop innovative technologies, which make the company’s products highly demanded by physicians. This investment round is predominantly focused on bringing three new highly innovative and proprietary products to market over the next two years. These products alone have the potential to increase the company’s sales many multiples above current levels. We are extremely pleased to be invested in a proven substantial company that possesses a very attractive near-term pipeline.
SmartDyeLivery develops functionalized nanoparticles in which therapeutic compounds are enveloped and safely transported to specific organs, which the medicines are targeting. This patented platform delivery technology can be used for a wide range of therapeutic applications and also allows for a unique theranostic use case. Currently the SmartDyeLivery team is focusing on a therapy for sepsis induced liver failure with the goal of reducing the mortality rate of such cases by 90%. With this investment from bm|t and a savvy business angel, SmartDyeLivery is well positioned to take its unique nanotherapy through the next stage of clinical development.
FBGS Technologies is a leading developer and supplier of advanced fiber-optic sensing solutions and components based on Fiber Bragg Gratings (FBG) technology. The company’s products offer many modalities of monitoring for a wide range of applications and are currently being used in industries such as medical, aerospace, oil & gas, telecom, and test & measurement. This investment was led by X2 Capital, and bm|t and other current investors participated in the round. FBGS will use the funds to further develop its systems solutions offerings, to expand and automate its sensor manufacturing capacity in Jena, and to build sales operations and channels in key Asian growth regions such as China.
MasterPIM has developed a sleek and cloud-based Product Information Management (PIM) software that allows manufactures, traders, retailers, and marketplaces to easily manage complex product information datasets and effortlessly project the processed data into online shops and catalogues. Currently, over 90% of mid-sized manufacturers have no PIM solution, so the market is largely a greenfield opportunity. One of the key reasons that a large portion of the market has not adopted a PIM system despite the increasing demands of sales partners/channels on product data is that traditional PIM solutions are heavy, hosted software with expensive and invasive installations. MasterPIM allows customers to be online with an effective PIM system within hours and at a fraction of the cost of the old PIM systems on the market. This investment round was comprised of current investors, including bm|t, another institutional investor, and a family office, and will allow MasterPIM to expand its sales organization.