In cooperation with one or more independent private investors Wachstumsfonds Bayern managed by Bayern Kapital provides technology-oriented young, small and medium-sized enterprises in Bavaria as co-investment partner with equity capital for growth financing (Later Stage Venture Capital). This enables innovative Bavarian start-ups to receive more and larger funding. This enables them to take further growth steps, such as entering new sales markets. The fund volume of Wachstumsfonds Bayern amounts to EUR 165 million.
Wachstumsfonds Bayern is fundamentally open to innovative, technology and growth-oriented companies in all industries; regardless of whether external investors are already involved. A general requirement for participation by Wachstumsfonds Bayern is that the technology company has a successful business model, has successfully completed the seed phase and the first startup phase and wants to expand. The successfully completed seed and first startup phase may have been financed by external investors or by the founder/cash flow.
The financing contribution per technology company is between 2 and 10 million euros (also in several financing rounds). The participant selects the private investor. The private investor must participate in the company at least in the same amount as the Wachstumsfonds Bayern
Wachstumsfonds Bayern primarily funds young, innovative technology companies who want to use the venture capital to implement further growth steps (technical/market expansion).
Minimum content requirements are:
- Motivated and experienced management team with complementary competencies available in the company or planned to complete the management in the course of the financing round.
- Technology with sustainable unique selling propositions, which – insofar as possible – is protected by property rights and has clear competitive advantages.
- Growth market with significant market volume.
- Sustainable, scalable business model.
- Business concept with sustainable sales potential: Steadily increasing growth over a longer period is more important to us than unrealistically high growth rates in the shortest possible time.
- Exit scenario exists.
- A private investor selected by the company participates with equity parallel to the Bavarian growth fund and cooperates with the Bavarian growth fund; the private investor participates at least in the same amount as Wachstumsfonds Bayern.
- Company headquarters or permanent establishment in Bavaria; The major part of the innovation project to be financed is carried out by the company itself.
- Legal form of a corporation with its registered office or permanent establishment in Bavaria.
- Integration of the essential know-how bearers in the company management, the know-how bearers should also be incentivized by shares in the company.
- Industrial property rights (patents, trademark rights, etc.) must be transferred to the company.
- The total financing of the company including the equity capital of Wachstumsfonds Bayern is comprehensibly secured for a period of 18 – 24 months.
- Fulfillment of the European Union’s SME criteria.
- Seed and first start-up phase successfully completed (financed by external investors or own funds/cash flow).
- Amount of participation: A total of up to EUR 8/10 million, spread over several financing rounds. Investments made by another co-financing fund managed by Bayern Kapital are counted towards the maximum investment amount of EUR 8/10 million. Participation is generally provided in tranches in accordance with the progress of the innovation project.
- Type of participation: Open and/or typically silent participation on the same terms as the private investor. Based on your business model and the business valuation of your private investor, the participation model is agreed with you and the private investor and, if applicable, with the other investors.
- Duration of participation: Basically, the term of the participation of the of Wachstumsfonds Bayern depends on the term of the participation of the private investor.With a typically silent participation, a term of up to max. 31.12.2030 possible.
- Participation fee for silent participation: In the case of a typical silent participation, in addition to a one-off remuneration, which is retained when a first tranche of participation is paid out, a fixed, earnings-independent basic remuneration, profit sharing and an appropriate exit fee are agreed.