Startup support in Bavaria has many faces. For example, Bavaria Capital (Interview with Managing Director Roman Huber) or the High-Tech Founders Fund (HTGF) supports young founders in all phases of their business. Business angels also make a significant contribution to the vibrant startup scene in the Free State, supporting young companies not only financially but also with their expert knowledge.
They do this particularly successfully in Bavaria – numbers illustrate this, which the HTGF presented in February at the "Business Angels Europe – Conference in Angel Investment Research 2016" event organized by the Business Angels Network Germany (BAND). According to the report, startups across Germany are already benefiting from funding totaling €30 million in the seed stage. Of this, more than €9 million has gone to Bavaria. And Bavaria has also maintained its leading position in the subsequent financing rounds with funds raised. Of the €177 million, more than a third has gone to startups in Bavaria.
Production at a new high
Bavaria's lead is no coincidence: For example, BayStartUP, with more than 200 listed business angels, is one of Europe's largest investor networks. Not only do startups benefit from the funding, but investors also benefit from exclusive meetings and personal support. As a result, the nine million euros in capital in the 2015 fiscal year accounted for almost a quarter of the total funding for Bavarian startups – almost twice as much as the previous year. Overall, startup funding in the Free State of Bavaria reached a new high.
Financial and moral support
Financing through business angels has very special advantages: Firstly, as lead investors, they often make financing rounds possible, thus securing additional funding for young companies, for example, from public investors. Furthermore, business angels not only open their wallets but also support startups with their specialist expertise and established networks. Dr. Carsten Rudolph, Managing Director of BayStartUP, to appreciate:
"The commitment of business angels is remarkable. These wealthy individuals with entrepreneurial backgrounds are increasingly recognizing the opportunities offered by Bavaria's startups. Bavaria may not be able to match the amounts invested by large funds in the US in terms of venture capital, but the growing business angel scene is essentially creating a new capital market, especially in the very early stages of startups. And there is plenty of capital available in Germany."
For example, BayStartUP provides personal contact between investors and startups in the Venture Conferences Here, selected founders have the opportunity to present their ideas to venture capital representatives, public investors, and business angels from across Germany. In addition to presentations and keynote speeches, the events also offer extensive networking opportunities. The next event will take place on May 11th for startups from the internet, software, and mobile sectors.
