{"id":10276,"date":"2016-05-02T12:13:53","date_gmt":"2016-05-02T10:13:53","guid":{"rendered":"http:\/\/cms.munich-startup.net\/?p=10276"},"modified":"2016-05-02T12:16:35","modified_gmt":"2016-05-02T10:16:35","slug":"baybg-venture-capital","status":"publish","type":"post","link":"https:\/\/cms.munich-startup.net\/en\/10276\/baybg-venture-capital\/","title":{"rendered":"The path to venture capital from BayBG"},"content":{"rendered":"<div class=\"entry-content\"><p><strong>Tips for getting venture capital from the <a href=\"http:\/\/www.baybg.de\/\" target=\"_blank\">Bavarian Investment Company Ltd. (BayBG)<\/a> Dr. Marcus Gulder, Head of Venture Capital at BayBG and juror at <a href=\"\/en\/ecosystem\/baystartup\/\" target=\"_blank\">BayStartUP<\/a>.<\/strong><\/p>\n<p><img decoding=\"async\" class=\"alignright size-medium wp-image-10277\" src=\"https:\/\/cms.munich-startup.net\/wp-content\/uploads\/2016\/04\/MGulder_Farbe_2014L-293x440.jpg\" alt=\"MGulder_Farbe_2014L\" width=\"293\" height=\"440\" srcset=\"https:\/\/cms.munich-startup.net\/wp-content\/uploads\/2016\/04\/MGulder_Farbe_2014L-293x440.jpg 293w, https:\/\/cms.munich-startup.net\/wp-content\/uploads\/2016\/04\/MGulder_Farbe_2014L-400x600.jpg 400w, https:\/\/cms.munich-startup.net\/wp-content\/uploads\/2016\/04\/MGulder_Farbe_2014L-586x880.jpg 586w, https:\/\/cms.munich-startup.net\/wp-content\/uploads\/2016\/04\/MGulder_Farbe_2014L.jpg 674w\" sizes=\"(max-width: 293px) 100vw, 293px\" \/><\/p>\n<h3>1. The basic requirement<\/h3>\n<p>The young technology company has successfully completed the seed phase and can demonstrate initial market success with a fully developed product. Or the startup, as a management team, is facing new challenges in a later phase of the company, such as internationalization or the acquisition of a company. Therefore, you need equity to finance further growth.<\/p>\n<h3>2. The business model<\/h3>\n<p>Ultimately, it\u2019s about communicating the cornerstones of your business model in an understandable way, <strong>from customer benefits to value creation to the revenue model.<\/strong><\/p>\n<p>BayBG finances business models whose revenue model enables them to reach the break-even point within approximately 24 months. It is quite conceivable that we may jointly decide at a later date to postpone profitability in favor of further growth.<\/p>\n<p><strong>BayBG invests across sectors<\/strong> into a wide variety of business models. We generally exclude only traditional biotech drug development and purely advertising-financed freemium business models due to the above comments on temporary loss financing.<\/p>\n<h3>3. The market potential<\/h3>\n<p>Your company should first gain a foothold in the DACH market before &quot;rolling up&quot; the global market in the next step. As a rough guideline, you need to demonstrate a global market potential of at least \u20ac500 million for your product if you want to raise venture capital from financial investors.<\/p>\n<h3>4. The business plan<\/h3>\n<p>The business plan should objectively present the essential information on 10 to a maximum of 15 pages. It can also be presented as a PowerPoint presentation and in any case with a <strong>comprehensible planning<\/strong> for the current financial year and the<br \/>\ntwo subsequent years.<\/p>\n<h3>5. Your presentation<\/h3>\n<p>Convince us with a professional presentation that should last approximately 30 minutes. Focus on your business model.<\/p>\n<p>And expect to be asked about your assessment of the company\u2019s value for the planned financing round.<\/p>\n<h3>6. The process<\/h3>\n<p>After an initial consultation, we familiarize ourselves with your business model through reference discussions and market and competitor research. Based on a mutual letter of intent outlining the key details of the planned investment, we begin an in-depth due diligence review, possibly involving external experts.<\/p>\n<p>A positively completed due diligence leads to the contractual implementation<br \/>\nand in BayBG\u2019s participation in the startup.<\/p>\n<p>With optimal preparation on the company side, we are generally able to complete the process from the initial meeting within eight weeks. A financing round usually requires a period of four to six months, especially if you are bringing on board an institutional investor for the first time.<\/p>\n<p>BayBG invests in four to six new venture capital companies annually. A <a href=\"\/en\/ecosystem\/baystartup\/\" target=\"_blank\">Business plan competition <\/a>participating company.<\/p>\n<h3>7. BayBG as a temporary partner<\/h3>\n<p>In contrast to traditional venture capital companies, BayBG is not<br \/>\nIt is not a time-limited fund, but rather an \u201cevergreen fund\u201d: BayBG can reinvest returns from its investments and is therefore not subject to any selling pressure.<\/p>\n<p>This enables us to offer medium- to long-term investment concepts. However, as a financial investor, we remain a temporary partner and contractually stipulate our exit in the investment agreement.<\/p>\n<p>The acquisition of venture capital therefore requires the company founders to be willing to forgo a joint company sale<br \/>\nor IPO. Convince us that your business model has the potential for a joint, successful exit.<\/p>\n<p><span style=\"text-decoration: underline\"><strong><em>Who is BayBG?<\/em><\/strong><\/span><\/p>\n<p><em>The<a href=\"http:\/\/www.baybg.de\" target=\"_blank\"> BayBG Bayerische Beteiligungsgesellschaft mbH<\/a> (BayBG for short) is one of the largest investment companies for medium-sized businesses in Germany. It currently has investments of more than 310 million euros in around 500 Bavarian companies.<\/em><\/p>\n<p><em>With its Venture Capital team, BayBG invests in Bavarian technology companies that are aiming for a medium-term exit via a trade sale or IPO. BayBG initially invests up to<\/em><br \/>\n<em>to 1.5 million euros. In the later-stage phase, investments of up to 7 million euros per company are possible. BayBG&#039;s venture capital portfolio currently includes 31 companies, including iThera Medical, mercateo, NavVis, NFON, Open-Xchange,<\/em><br \/>\n<em>Proteros Biostructures, tado and THEVA thin film technology.<\/em><\/p>\n<p><em>Contact: <a href=\"mailto:marcus.gulder@baybg.de\">marcus.gulder@baybg.de<\/a> <\/em><\/p>\n<p>Do you want more tips, background information and exciting news about Bavarian startups, financing &amp; Co.? Then take a look at<a href=\"http:\/\/www.baystartup.de\/baystartup\/magazin-startupdate.html\" target=\"_blank\"> <strong>Online magazine from BayStartUP<\/strong> <\/a>over.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Dr. Marcus Gulder, Head of Venture Capital at BayBG and juror for BayStartUP, offers tips for accessing venture capital from Bayerische Beteiligungsgesellschaft mbH (BayBG). 1. The basic prerequisite: The young technology company has successfully completed the seed phase and can demonstrate initial market success with a fully developed product. \u2026<\/p>","protected":false},"author":22,"featured_media":10321,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5633,1091,5637,10,1,5635],"tags":[284,52,36,34],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Der Weg zu Venture Capital von der BayBG - Munich Startup<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cms.munich-startup.net\/en\/10276\/baybg-venture-capital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Der Weg zu Venture Capital von der BayBG - Munich Startup\" \/>\n<meta property=\"og:description\" content=\"Tipps f\u00fcr den Weg zu Venture Capital von der Bayerischen Beteiligungsgesellschaft mbH (BayBG) gibt Dr. Marcus Gulder, Leiter Venture Capital bei der\u00a0 BayBG und Juror bei BayStartUP. 1. 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