+++ Press release +++
German Startups Group shareholders will benefit from the voluntary waiver of a part of the management fee also in 2018
- – The Venture Capital investor still has no plans for a capital increase
Berlin, 8 December 2017 – The general partner of German Startups Group, a leading venture capital provider in Germany and Berlin-based digital agency with 140 employees, waives a significant part of the agreed management fee in the amount of 1.0% of the individual balance sheet total p.a.(IFRS) until further notice to the benefit of the shareholders of the KGaA in 2018, too. Therefore, the variable part still amounts to 1.5% of the balance sheet total p.a. which is a relatively low rate compared to German or international VC funds. Furthermore, in the eyes of the management the share currently also quotes significantly below the net asset value (NAV) per share and, considering this discount and the low management fee, therefore represents a comparable attractive investment opportunity in German Venture Capital and with it a portfolio of partly very successful and well-known young German growth companies.
On 7 June 2017 German Startups Group had announced that it will cut its cost significantly with the aim to save up to 50% of the business-as-usual and listing costs compared to June 2016. The management wants to keep the costs on a low level in 2018, too. The general partner holds the management of the KGaA and compensates the running cost for the team, offices, events, business travels etc. through its fee.
In addition, the management considers the current share price to be very unattractive to pursue a capital increase and plans not to do so in 2018, too.In this way, German Startups Group also prevents its shareholders to be diluted for unfavorable share prices.
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German Startups Group
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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). 22 of the 42 minority stakeholdings in operationally active companies are of particular significance to German Startups Group and together comprise 89% of the total value of all 42 active minority stakeholdings. The 10 core holdings alone make up 61% 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 at https://sgt-germanpe.com/.