ScaleUp-Fonds Bayern managed by Bayern Kapital provides venture capital for growth financing to strongly expanding high-tech companies in Bavaria as a co-investment partner, in cooperation with one or several independent private investors (hereinafter “private investor”). As a consequence, technology-oriented innovative companies are able to obtain higher financing. This enables them to undertake significant growth steps such as entry into international sales markets or preparing for exit.
- The fund volume of ScaleUp-Fonds Bayern totals EUR 200 million; per company, EUR 10 – 25 million can be invested.
Who receives funding?
Primarily strongly expanding high-tech companies of all industries which aim to realise further growth steps (technical/market expansion) or an exit. External investors may already be involved. The general requirement for an investment is that the technology company has a verifiably successful business model in the market, has completed initial financing rounds and further expansion or exit is planned. The successfully completed seed phase and start-up phase may have been financed by external investors or by the own funds/cash flow of the founder.
How much does ScaleUp-Fonds Bayern contribute?
The financing contribution per technology company is between EUR 10 million and EUR 25 million (also in several financing rounds).
What are the requirements for cooperating private investors?
Private investors are selected by the investee. The private investor must invest at least the same amount in the company as ScaleUp-Fonds Bayern, and may not already be invested in the company at the time of initial joint financing with ScaleUp-Fonds Bayern.
- Motivated and experienced management team with complementary skills available in the company.
- Technology with sustainable unique features, which – as far as possible – is protected by industrial property rights and has clear competitive advantages.
- Growth market with significant market volume.
- Verifiably successful, highly scalable business model.
- Exit strategy in place.
Other formal criteria:
- The project to be financed with investment by ScaleUp-Fonds Bayern is implemented in its essential parts by the company itself.
- Legal form of a corporation with registered office or place of business in Bavaria.
- Experts with specific know-how should be incentivised by shares in the company.
- Industrial property rights (patents, trademark rights etc.) must be transferred to the company.
- The overall financing of the company including the venture capital of ScaleUp-Fonds Bayern is secured for a period of 18 – 24 months.
What is financed?
- (Further) development of new products/processes (including technical services) in order to broaden the product- and service range of the investee, including their market launch. In the life science sector: performance of clinical trials (to achieve exit/licensing capability or as a basis for the subsequent phase of market entry, including sustainable generation of revenue).
- Expansion of sales activities and implementation of internationalisation strategies.
- Financing of further innovative product diversifications or expansion of market share, including acquisitions/implementation of exit strategies.
Financially viable cost items
These are, in particular, expenses for personnel, material expenses/external services, costs for marketing and sales and expenses for the registration and upkeeping of property rights.
Type/duration of investment
- Open and/or typical dormant holding on identical terms (including valuation) as the private investor. A combination of open investment and subordinated loan is also possible.
- Fundamentally long-term oriented and compliant with the investor consortium.
Path to funding
You can send us your business plan or your informative presentation either directly or via the private investor.
We will be happy to advise you on our fundamental financing options in advance, i.e. before selection of a private investor.
We are particularly interested in information on the following investment criteria:
- Level of innovation, unique selling propositions
- Business model
- Customer benefits, strategic competitive advantage, market- and growth potential
- Market- and growth potential
- Plausibility of corporate and financial planning
- Exit strategy
You then receive initial feedback from us with, in some cases, an invitation to a personal interview, following around ten working days.
The own due diligence of Bayern Kapital as manager of ScaleUp-Fonds Bayern includes a structured review of the business plan as well as all key sectors of the company and the innovation project. We are open to using the private investor’s due diligence documents or to commission external due diligence measures together with the private investor.
In all other respects the investment principles of ScaleUp-Fonds Bayern GmbH & Co. KG apply