07.04.2017
German Startups Group Berlin GmbH & Co. KGaA DE000A1MMEV4
DGAP-News: German Startups Group realises capital gains and opens up for partnerships
DGAP-News: German Startups Group Berlin GmbH & Co. KGaA / Key word(s):
Miscellaneous
German Startups Group realises capital gains and opens up for partnerships
07.04.2017 / 15:12
The issuer is solely responsible for the content of this announcement.
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+++ Press release +++
German Startups Group realises capital gains and opens up for partnerships
- Capital gains through sale of shares in two portfolio companies and book
profits through third-party objectivisation of higher share prices
- Management sees increasingly strong interest of corporates in the booming
German startup ecosystem
- Consulted major shareholders of German Startups Group declined to sell
their shares at an inquired price of 2.40 euros per share
Berlin, 07 April 2017 - German Startups Group, the most active private
venture capital investor in Germany since 2012 (CB Insights 2015, PitchBook
2016), will sell its shares in a holding of particular significance to the
company to two financial investors and thus realise proceeds of just under
one million euros. In the course of this, German Startups Group will realise
a multiple of the capital invested of 2.5x as well as an internal rate of
return (IRR) of 60% p.a. and capital gains of 550k euros. Through a partial
sale of shares in a further holding of particular significance to the
company, German Startups Group will realise capital gains against the book
value of 60k euros. In the course of an investment by a financial investor
in the portfolio company, German Startups Group will sell half of its shares
and thus realise a cash inflow of more than 350k euros. German Startups
Group holds on to its remaining shares since there are concrete prospects of
further value gains. The remaining shares are to be appreciated due to the
third-party objectivisation of the share price in the course of the
transaction and bring about a book profit of 60k euros. The two respective
portfolio companies will be named after the completion of the formalities of
the transactions.
Furthermore, German Startups Group generates a small book profit in another
portfolio company due to higher shares prices in a financing round after
which the shares held by German Startups Group are now worth twice as much
as before.
In total, the company generates a positive earnings effect of more than 700k
euros or 0.06 euros per share through the above-mentioned events (IFRS). A
positive effect on the net asset value (NAV) per share occurs to almost the
same extent. German Startups Group already realised proceeds of 800k euros
through the sale of two shareholdings at the end of January.
German Startups Group currently sees further positive developments in its
investment portfolio and at the same time opens up to, among others,
partnerships with other players of the VC and M&A scene in the German
startup ecosystem and new investors there in order to meet its growth goals.
The company would hence be able to make better use of its good market
position and its established resources as well as have more significance in
the VC and capital markets. In the VC market, this would allow German
Startups Group to continue its active investment activity in existing and
new portfolio companies. In the capital market, this usually leads to more
liquidity in the trading of one's own share.
In March, German Startups Group reached a preliminary agreement with a
potential buyer of a majority stakeholding over a partnership in which the
potential buyer would have intended to subscribe to a capital increase of
just under 10% and to acquire further shares at a price of 2.40 euros from
existing shareholders. This has become obsolete in the meantime since major
shareholders of German Startups Group consulted under non-disclosure
agreements were not willing to sell their shares at this price.
Christoph Gerlinger, CEO of German Startups Group comments, "German Startups
Group and its managing general partner headed by me are now also open to
talks on cooperations, mergers, and acquisitions. In the past five years, we
have acquired a privilege of access to those investment opportunities that
are generated by successful serial entrepreneurs, so-called high-quality,
organic deal flow. It would be easy for us to bring significantly more
capital to work within a very short amount of time for the creation of value
in the highly attractive, booming German startup ecosystem. By now, apart
from media and telecommunications companies also finance and other
industrial companies show increasing appetite for investments in tech
startups from Germany.
Press contact
German Startups Group
Theo Bonick
Tel: +49 30 6098890 84
Mail: [email protected]
German Startups Group - We love Startups!
German Startups Group is a listed investment company based in Berlin that
focuses on young, fast-growing companies, so-called startups. The company
acquires majority and minority shareholdings mainly by providing venture
capital. The portfolio companies that German Startups Group holds also stand
to benefit from German Startups Group's expertise, experience and network
with respect to strategy development, financing rounds, restructuring
necessities, M&A transactions or selling the company, including a possible
IPO. According to its own assessment, German Startups Group provides
startups with so-called "smart money" by acquiring a shareholding. Its focus
is on companies whose products or business models represent a disruptive
innovation, allow for a high degree of scalability to be expected, and in
which it has a great deal of trust in the entrepreneurial abilities of the
founders to whom it feels that it obtains early access to due to its close
relationships to relevant players in the startup scene. The geographical
focus is on the German-speaking region. Since it commenced with operations
in 2012, German Startups Group has in its opinion built up a diversified
portfolio of investments in young companies and become the most active
private venture capital investor in Germany since 2012 (CB Insights 2015,
PitchBook 2016). 24 of the 43 minority stakeholdings in operationally active
companies are of particular significance to German Startups Group and
together comprise 91% of the total value of all 43 active minority
stakeholdings. The ten core holdings alone make up 62% of the value of all
active minority stakeholdings. According to German Startups Group, its
investment portfolio reflects a cross-section of promising German startups
of various maturity stages ("Seed," "Early" and "Growth Stage," by German
Startups Group's own definition) and includes some of the most successful
and best known German startups.
More information is available on our website at www.german-startups.com.
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07.04.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: German Startups Group Berlin GmbH & Co. KGaA
Platz der Luftbrücke 4-6
12101 Berlin
Germany
Phone: +49.30.6098890.80
Fax: +49.30.6098890.89
E-mail: [email protected]
Internet: www.german-startups.com
ISIN: DE000A1MMEV4
WKN: A1MMEV
Listed: Regulated Unofficial Market in Berlin, Dusseldorf,
Tradegate Exchange; Open Market (Scale) in Frankfurt
End of News DGAP News Service
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563377 07.04.2017
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