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bm|t newsletter Q2 2018

Wel­come to our second quar­terly bm|t news­let­ter. If you are recei­ving this news­let­ter via email, you suc­cessfully par­ti­ci­pa­ted in the GDPR com­pli­ance spec­ta­cle – thank you for your under­stan­ding. If you have part­ners or col­le­agues who are inte­res­ted in a regu­lar bm|t update, don’t hesi­tate to share this link.

In this Newsletter 

TRUST Isn’t a Four-Letter Word

While recently in Ber­lin mee­ting with inves­tors we were enga­ged in an inte­res­t­ing dis­cus­sion about Initial Coin Offe­rings (ICOs).  Our con­ver­sa­tio­nal coun­ter­party, an early-stage pri­vate inves­tor, was advo­ca­ting how great it would be if all invest­ments had tradeable, block­chain-based tokens, and the­r­e­fore the annoy­ing pro­blem with illi­qui­dity could be sol­ved. We under­stand the sen­ti­ment behind this thin­king, but believe it focu­ses too nar­rowly on avo­i­ding the nega­tive effects of a lack of trust and not ade­qua­tely on the posi­tive effects of the pre­sence of trust.

Trust and Commitment are Critical Success Factors

An important con­cept behind block­chain / decen­tra­li­zed led­gers is that one can eli­mi­nate the need for direct coun­ter­party trust in envi­ron­ments where trust can be dif­fi­cult to estab­lish. For exam­ple, estab­li­shing trust bet­ween par­ties that may have never inter­ac­ted with each other prior to con­sum­ma­ting a tran­sac­tion and when there is a low likeli­hood of repeat tran­sac­tions bet­ween the par­ties. There are situa­tions where the ability to remove the need for trust from the equa­tion can be extre­mely bene­fi­cial. Howe­ver, in our métier of ven­ture capi­tal and pri­vate equity, we believe that trust and com­mit­ment are actually cri­ti­cal suc­cess fac­tors that can­not be out­sour­ced to a face­l­ess, decen­tra­li­zed network.

At bm‑t we have recently recom­mit­ted our­sel­ves to working dili­gently to be the part­ner-of-choice for our inves­tee-part­ners. This part­ner­ship mind­set ori­gi­na­tes from a deep belief that when entre­pre­neurs and inves­tors work coope­ra­tively and openly with a com­mon goal that out­stan­ding results can stem from this deep trust and mutual understanding.

We at bm|t do not invest in business plans; we invest in entrepreneurs.

In essence, we aim to find busi­ness­peo­ple who we trust will find a way to create value even when plan A, B, or C does not mate­ria­lize as ori­gi­nally envi­sio­ned. We stron­gly believe that entre­pre­neurs should also cul­ti­vate and value this trust, which is accom­pa­nied by many posi­tive attri­bu­tes for peo­ple and com­pa­nies with big ambi­ti­ons – such as pati­ence, coope­ra­tion, com­mit­ment, and a co-war­rior mentality.

Indeed, in our view, entre­pre­neurs should be very wary of the siren songs of ICOs, instant liqui­dity, and not having to deal directly with pesky inves­tors, as those inves­tors are exactly the ones who are most likely to sup­port com­pa­nies when chan­ges to the busi­ness plan become neces­sary or in moments when a cate­gory falls out of favor with the crowd.

We at bm|t are working con­cer­tedly to create an envi­ron­ment of mutual trust by com­mu­ni­ca­ting pro-actively and trans­par­ently with our Inves­tee-Part­ners; and we highly value that same com­mu­ni­ca­tion in return. We view trust as a valuable long-term asset that can pro­duce great divi­dends, not some­thing to be outsourced.

Your Com­mit­ted to Trust bm‑t Team

Investor Days Thüringen

Inves­tor Days Thü­rin­gen was a suc­cessful event again this year, with record inves­tor atten­dance and over 80 com­pa­nies pre­sen­ting their sto­ries. Only time will tell which com­pa­nies from this year’s class of pre­sen­ters will be dis­cus­sing a sale to a social media giant or a Nasdaq IPO as a key­note spea­ker at future events.

We, and the guests from whom we recei­ved feed­back, were very impres­sed by the poise of the pre­sen­ters and the high level of cor­po­rate sub­s­tance on dis­play. We, in Thü­rin­gen, are still fly­ing a bit ste­alt­hily, but we are appearing on the radar of more inves­tors and look for­ward to wel­co­ming even more first-time guests next year at Inves­tor Days Thüringen.

We will be set­ting the date for the event soon, so please watch your inbo­xes and our › Lin­ke­dIn Page and › Xing pages for details.

Welcome to the Family

APP­so­lute Mobility’s two mana­ging foun­ders, Vic­to­ria von Wach­tel and Alex­an­dra Kul­fa­nová, rea­li­zed early on that app crea­tion could be made so easy and con­fi­gura­ble that more com­pa­nies would start to design and publish their own apps for inter­nal and exter­nal busi­ness pro­cess opti­miza­tion. To enable this self-ser­vice, APP­so­lute Mobi­lity has con­s­truc­ted a highly-intui­tive and fle­xi­ble app-deve­lo­p­ment environment.

The soft­ware plat­form is out­stan­ding, and we were very impres­sed with the foun­ders, as they had alre­ady gene­ra­ted sub­stan­tial reve­nues and pos­sess a great road­map for sca­ling the pure license por­tion of their busi­ness model. There are some big com­pa­nies com­pe­ting in the space, but with the right com­bi­na­tion of per­so­na­li­zed solu­ti­ons and sca­lable soft­ware, we know › APP­so­lute Mobi­lity has a lot of head­room for pro­fi­ta­ble growth.

We are loo­king for­ward to working with APP­so­lute Mobi­lity to enable com­pa­nies to use self-ser­vice App deve­lo­p­ment to improve cor­po­rate performance.

Q2 2018 Investment Rounds

InflaRx rai­ses ano­ther $ 63 Mio in pri­mary shares

InflaRx (Nasdaq: IFRX) and cur­rent share­hol­ders pla­ced $ 117,3 Mio. of shares, with $ 63 Mio. as pri­mary shares with the pro­ceeds going to InflaRx and $ 54 Mio. as secon­dary shares with the pro­ceeds going to early share­hol­ders, who all remain inves­ted in InflaRx.

InflaRx intends to use of pro­ceeds from the capi­tal raise to finance the fur­ther cli­ni­cal deve­lo­p­ment of its lead can­di­date IFX‑1, which is curr­ently in Phase IIb.  The the­rapy is being tria­led on pati­ents with mode­rate to advan­ced Hid­ra­de­ni­tis Sup­pur­a­tiva (HS), which is a pain­ful and chro­nic inflamm­a­tory skin dise­ase with limi­ted tre­at­ment opti­ons.  Fur­ther­more, the com­pound is going to be tes­ted in two phase II tri­als for addi­tio­nal auto-immune and inflamm­a­tion indications.

read more ›

ife­sca clo­ses Series A finan­cing with ano­ther EUR1.5 mil­lion investment

ife­sca ope­ned its Series A finan­cing round about six months ago and quickly secu­red 1 mil­lion EUR in the first clo­sing. In the second clo­sing, a fur­ther 1.5 mil­lion EUR was rai­sed.  The total of 2.5 mil­lion EUR will enable the com­pany to fur­ther grow and inter­na­tio­na­lize its ifesca.AIVA plat­form. bm‑t was the lead inves­tor in the Series A finan­cing and was accom­pa­nied by mul­ti­ple pri­vate investors.

The intel­li­gent cloud ser­vice of ifesca.AVIA, enables energy com­pa­nies to bet­ter fore­cast future demand for elec­tri­city, gas, or heat in near real time.  These insights allow energy com­pa­nies to make bet­ter decis­i­ons regar­ding their own gene­ra­tion ope­ra­ti­ons and/or energy trading.

read more ›

Nano­par­tic­les for life-saving therapies

The Stif­tung für Tech­no­lo­gie, Inno­va­tion und For­schung Thü­rin­gen (STIFT) and the Spar­kasse Jena-Saale-Holz­land invest in an inno­va­tive the­ra­peu­tics com­pany in Jena.

Smart­Dye­Li­very, in Jena, uses nano­par­tic­les to direct the­ra­peu­tic com­pounds directly to tar­ge­ted organs.  With a paten­ted tech­no­logy based on func­tional nano­par­tic­les, Smart­Dye­Li­very con­vin­ced the STIFT to join the Spar­kasse Jena-Saale-Holz­land, which increased its invest­ment, and bm|t as key insti­tu­tio­nal share­hol­ders, in the aspi­ring bio­tech­no­logy company.

read more ›