The state of Hesse as well as leading companies and investors set up growth funds for fast-growing technology-oriented companies — 60 million euros investment and cooperation with e.ventures, to strengthen the Hessen location globally
In a press conference this morning, The state of Hesse presented the founding of the Futury Regio Growth Fund in cooperation with renowned companies from Hesse and Germany as well as other investors.
With the fund, those involved want to support technology-oriented companies in later phases and at the same time promote Hessen as an innovation and development location. The government partners anchored the fund in the Hessian coalition agreement. Fund activities began at the end of 2020.
The investments in the order of two to eight million euros are intended to support companies and business models that offer innovative solutions and products in future-oriented technology areas and are also globally oriented. These include the areas of artificial intelligence, fin-tech, internet, software, as well as mobility and logistics.
In 2018, the State of Hesse and private investors launched the Futury Venture Fund, which invests in growth companies from Hesse and Germany in the early phase. From the state’s point of view, the renewed cooperation between the public and private sectors in this larger and broader fund is the natural next step, as Hesse’s Finance Minister Michael Boddenberg explained today at the presentation in Frankfurt: “The conditions for founders are getting better and better in Germany. But technology-oriented innovations in particular require large financial investments from companies, for which the necessary financing options are often lacking in this country. With the Futury Regio Growth Fund, we show that we want to establish modern technologies in our country and therefore provide the necessary capital that is needed for such developments. The state and the private sector set a strong, common signal and together on new ideas for the future — made in Hessen. This is more important than ever in the midst of the Corona crisis. “
In addition to the state of Hesse, numerous globally active companies and private investors have participated in the fund, many with headquarters in Hesse such as Deutsche Börse, Fresenius, Merck, Deutsche Bank, ODDO BHF, WISAG and Mainova, but also Goldbeck, Dussmann and the ND Group. “This close cooperation between politics, companies and private investors is unique in Germany,” said Economics Minister Tarek Al-Wazir . “It shows that Hessen is a location that is invested in and that domestic and foreign companies offer an attractive environment for settling in. In this way, we not only bring capital but also international know-how to Hessen. “
“As a global health company based in Hessen, we want to provide more and more people all over the world with better and better medicine. Our participation in this joint initiative fits in very well with this claim. Investments in future technologies improve the quality of life and are therefore also the basis for sustainable economic success, ”said Stephan Sturm , CEO of Fresenius.
“Against the background of structural change in the energy industry and the digital transformation, as a partner of the fund, we expect important impulses for new business areas as well as innovative solutions and products for our customers. In addition, the fund offers us a very good opportunity to make a further contribution to promoting young companies in Hesse and the regional economy, ”explains Dr. Constantin H. Alsheimer , CEO of Mainova.
“We have been supporting the start-up initiatives of the Hessian state government for several years and are pursuing our own venture activities. We specifically develop young companies that, like us, are active as technology companies in the financial sector. We are involved in the Futury Fund because it makes sense to bundle our strengths in this area and provide sustainable support to the innovation location, ”said Deutsche Börse CEO Dr. Theodor Weimer .
The fund, based in Frankfurt am Main, has a fund volume of 60 million euros, half of which is financed by the State of Hesse, and cooperates with the internationally active venture capital investor e.ventures.
“By actively integrating our experience and our network in the Futury Regio Growth Fund, investments can be bundled in a targeted manner and larger amounts of participation made available together,” explains Andreas Haug , co-founder and general partner at e.ventures. In addition, the global participation of e.ventures in the markets of Germany, EU, USA and Asia results in a strong international positioning of the Hessen location and the financed companies. The aim is to create synergies through the different directions of action of the funds and thus to attract further capital for the region and to inspire international companies for Hessen as a location.
The Futury Regio Growth Fund has already successfully made two investments in the first few weeks. On the one hand Wingcopter GmbH, a developer, manufacturer and operator of unmanned high-performance delivery drones, was financed — a globally growing company from Weiterstadt in southern Hesse. With the funds, Wingcopter will be able to expand its leading position in the rapidly growing international market of drone-based logistics. Tom Plümmer , co-founder and CEO of Wingcopter, comments: “We are proud to be one of the first start-ups to receive funding from the Futury Regio Growth Fund. The Futury team is also excellently networked and can open various doors for us in both politics and business. “
The second investment was made in Apiax AG, Zurich. Apiax is a software company active in the regulatory and compliance environment. Apiax offers companies a digital regulatory cockpit with which legal and compliance teams can manage, review and apply new regulations in an agile manner. The plan is to open a branch in Frankfurt am Main in the first stage and to start building the German sales organization here. The Frankfurt location in particular, as the largest European financial center next to London, offers excellent opportunities for scaling the digital business model.
All further details about the growth fund can be found at www.frgf.vc.