Future “made in Bavaria” - since 1995

History of Bayern Kapital

- Bayern Kapital
  On the initiative of the Bavarian state government, Bayern Kapital was founded in 1995 as a wholly owned subsidiary of LfA Förderbank Bayern as part of the “Offensive Zukunft Bayern” (Offensive for Bavaria's Future) program.
  During its first years in business, Bayern Kapital was exclusively involved in early-stage financing through silent partnerships.
  Bayern Kapital started its investment business with five employees and DM 60 million under management.
- Venture capital market & the start-up economy
  In 1995, the topic of startup financing through venture capital was still uncharted territory. The terms “startup” and “venture capital” were largely unknown (the same applies to “deep tech,” for example).
  Loan financing, which had previously been used as a funding instrument, was not particularly suitable for the early-stage financing of high-tech companies.
  Business angels were hardly present (the best-known angel at the time was Falk Strascheg), corporate VCs existed only sporadically, and there were only a few investment companies.
  ERP investment program of the technology investment company of the German Ausgleichsbank starts
  Over the next 10 years, the venture capital business in Germany and worldwide develops into an established form of financing for startups. The New Economy Boom is on its way to its peak.
  State aid law does not yet play a role.

- Bayern Kapital
  With the new fund generations, Bayern Kapital is making direct investments in start-ups for the first time.
  Initially, Bayern Kapital invested together with the former tbg and a private investor in a consortium (known as the “third-party model”).
  From 2005 onwards, Bayern Kapital gradually expanded its direct investment business, focusing on investments in early-stage companies during this period.
  Bayern Kapital is thus an important partner for early-stage startups and continued to play a key role in helping founders and their startups move forward.
- Venture capital market & the start-up economy
  The demise of the “Neuer Markt” and the corresponding closure of the “Neuer Markt” segment on the German Stock Exchange in 2003 had a significant impact on the scene (and continues to do so today).
  Investors focused on companies that already had initial successes, sales, and customers to show for themselves, thereby minimizing their risk.
  Once again, founders of tech startups faced major problems in raising capital, and business angels took on a key role in early-stage financing during this challenging phase.
  Establishment of the High-Tech-Gründerfonds

- Bayern Kapital
  Bayern Kapital celebrates two decades of successfully supporting over 230 Bavarian tech start-ups, managing €340 million and around 65 active portfolio companies.
  Bayern Kapital is now managing its first fund for companies in the expansion and growth phase: the Bayern Growth Fund with a total volume of €100 million.
  This puts Bayern Kapital at the forefront of Germany's growth financing landscape, which is facing a financing gap in the growth segment.
- Venture capital market & the start-up economy
  After facing considerable difficulties following the demise of the “Neuer Markt” in 2003 and the financial crisis in 2009, the German VC economy is now growing strongly and many new funds are entering the market.
  The start-up scene is booming, and topics such as digitalization and disruption are gaining in importance.
  Various networks are promoting access to capital, and industrial companies are once again increasingly setting up corporate VCs to promote innovation.

- Bayern Kapital
  With a volume of €200 million, the ScaleUp Fund Bavaria is being launched to help fast-growing and expanding high-tech and deep-tech companies successfully complete larger financing rounds and establish themselves on global markets.
  Bayern Kapital is now investing up to €25 million per company, further expanding its pioneering role in growth financing.
  Among other things, the new financial strength will contribute to the sustainable development of particularly capital- and development-intensive companies with future technologies in Bavaria and further strengthen the business location.
  Bayern Kapital is becoming a long-term anchor investor, accompanying companies through several financing rounds from the idea to the exit.
- Venture capital market & the start-up economy
  Record year for venture capital investments in Germany.
  Experienced founders (second- or third-time founders) are becoming business angels themselves.
  Fund volumes are rising sharply and financing rounds are reaching new heights.
  In 2020, the Future Fund launches with €10 billion until 2030 for venture capital financing of technology companies.
  In 2022, the DTCF DeepTech & Climate Fund is established.
  In 2023, the Growth Fund Germany launches.

- Bayern Kapital
  Bayern Kapital is one of the most active, experienced, and financially strong investors in the DACH region and develops sustainable high-tech and deep-tech companies in Bavaria.
  Bayern Kapital currently manages around €1.3 billion and oversees more than 120 active portfolio companies. With over 380 companies financed and well over 12,000 sustainable jobs created in Bavaria, Bayern Kapital is a key partner for the tech industry in the Free State.
  Thanks to 30 years of experience and a comprehensive network, Bayern Kapital, as a crisis-proof anchor investor, supports startups and scaleups not only with equity capital, but also with know-how and contacts.
  And even more to come…
- Venture capital market & the start-up economy
  With a return to capital efficiency after record years in 2021 and 2022 in the venture capital business, topics such as artificial intelligence, deep tech, and life sciences dominate the German VC market.
  In 2024, the WIN initiative and the Future Financing Act will be signed, and the Bavarian Ministry of Economic Affairs will launch the VC4Startup initiative.
  Overall, geopolitical crises and economic uncertainties are creating difficult conditions.
  Nevertheless, cautious optimism is shaping developments in the VC market.