Deutsche Börse Venture Network
Did you happen to read about the recent announcement of a project called Venture Match
led by Deutsche Börse AG? Several small articles were published on the topic, e.g. in the FAZ
. There was relatively little noise for something that could become very important very quickly. Why so important? Let’s see.
Deutsche Börse strives to connect mature start-ups
directly with later-stage investors
with Venture Match
. In this case, “mature start-ups”
means: fast-growing but otherwise rather stable start-ups, e.g. with single-digit millions in annual revenues. “Later-stage investors”
means family offices, private equity funds and corporate investors etc. who seek to invest at least EUR 1m per ticket in funding rounds with volumes of at least EUR 3m.
In other words, Deutsche Börse brings to the venture capital world what they are already doing in the corporate world for listed companies: they are building a platform on which investors can find information on capital-raising companies – where capital-raising companies can display their performance and announce investment opportunities.
In the venture capital world today
, there is no central, neutral, reliable information platform where companies and investors connect. This shortcoming is why the fundraising for non-listed companies is usually done by (a) the fundraising companies themselves, (b) existing investors of these companies (VCs, business angels) and (c) M&A boutiques or similar service providers. The effectiveness of the fundraising process (fortunately) is heavily reliant on the quality of the fundraising company and on the quality of the individual networks of the fundraising entrepreneurs, investors, and M&A boutiques.
Fundraising is particularly hard if you have a company that is still “not quite there”, i.e. that is on the verge of becoming successful. Those companies have to find “the perfect” investor, since only that perfect investor will be prepared to take the risk and invest. Finding that perfect investor is like searching for a needle in a haystack. But fundraising is also hard, when you are raising funds for a well-functioning company that gets approached by investors and looks like a real catch. One of the annoying things is that you never know if the most suitable investors for the company have taken notice of the investment opportunity and if you secured the best partner out of your fundraising efforts.
This is why for start-up companies and for early stage investors such as b-to-v it is really helpful to have a neutral player such as Deutsche Börse providing a market network (i.e. market place and social network) where investors can send portfolio companies to make their case visible to the investor community and where later-stage investors, e.g. family offices, private equity funds, corporations can conveniently check out investment opportunities that match their preferences (without relying on a call from somebody who thought of them and invited them to invest).
Last but not least, Carsten Kengeter, CEO of Deutsche Börse, does exactly what the entire start-up ecosystem claims: get involved, enhance the dialogue, invest and then acquire further attractive start-ups. Come meet Deutsche Börse, b-to-v and the rest of the European ecosystem at NOAH London (10-11 November 2016). We have 20 vouchers for a 20% discount which you can claim by registering here
and using the invitation code: N16LON-b-to-v (first come, first serve).
We support the Deutsche Börse Venture Network, because Venture Match
renders the fundraising for companies and the target selection for investors more transparently and easily, which is in turn also very helpful for early-stage investors who want to see their portfolio companies grow and prosper.
Have fun reading this month’s newsletter and finding out which b-to-v portfolio companies may soon be found on Deutsche Börse Venture Network…!