Early & Later stage companies

With the Deutsche Börse Venture Network®, Deutsche Börse AG is focusing its expertise on the pre-IPO segment and enables efficient access to capital for early and later-stage growth and technology companies. With over 200 member companies and more than 440 investors, the Deutsche Börse Venture Network is the leading ecosystem for growth financing in Europe.

Founded in 2015, the growth network covers a wide range of sectors with its member companies. Around 120 companies (60 per cent) can be classified as technology companies in the narrower sense. The share of companies in the sectors financial services, industrial & infrastructure as well as IT, software & data is particularly high.

A key characteristic of the German start-up ecosystem is continous innovation. One of the drivers for company start-ups, the German venture capital market, is developing strongly but still lagging behind in international comparison. This strong development is reflected in the steady increase of financing rounds with venture capital, both in the number of deals and in deal volume. According to PitchBook, a provider of private capital market data, the number of financing rounds for start-ups in Germany from 2010 to 2018 rose continuously from 294 rounds (2010) to 1,181 rounds (2018). Most recently, the number of financing rounds has stagnated. After a big leap from 2016 (967 rounds) to 2017 (1,160), the number of financing rounds grew only slightly in 2018 (1,181) and had already fallen by 2019 (1,177).

While the number of financing rounds has stagnated in recent years, the market has seen strong growth in deal volume. The volume of financing rounds rose from €0.59 billion in 2010 to €5.13 billion in 2019, and has continued to grow strongly in the last three years (an increase of €2.0 billion from 2017 to 2019).

The negative impact of the coronavirus crisis on the German start-up ecosystem is apparent in the number of deals in 2020. Only 514 financing rounds took place in the first nine months of this year. However, the deal volume remained the same and already exceeded the €5.0 billion mark in the first nine months.

Source: PitchBook, October 2020

After a strong increase in deal volume during the summer months of June and July, it stagnated at €0.27 billion (in 35 financing rounds) in August and rose again to €0.39 billion (in 32 financing rounds) in September.

Source: PitchBook, October 2020

So far this year, most of the financing rounds and the largest volume of financing were invested in the areas of Technology, Media and Telecommunications (TMT), followed by Artificial Intelligence and Machine Learning and Software-as-a-Service solutions.

Source: PitchBook, October 2020

In recent months, two transactions within the Deutsche Börse Venture Network were particularly noteworthy: the acquisition of DBVN member fos4X by PolyTech and the €150 million financing round of auxmoney.

The German company fos4X, a Munich-based innovator of fibre optic sensor technology and data analysis, was acquired by PolyTech, a specialist in rotor blade technology. The technology developed by fos4X uses data-driven approaches such as machine learning to digitise and optimise existing and new wind turbines.

As an experienced and reliable partner, the aim of the partnership is to push the boundaries of wind energy production even further and ultimately accelerate the global transition to renewable energy.

Düsseldorf-based auxmoney, the largest credit marketplace in Continental Europe, has successfully raised €150 million in a new financing round. This puts auxmoney in a good position to further expand its technological leadership and to seize emerging market opportunities. The round is backed by the US investment company Centerbridge, which has also successfully supported other leading digital platforms such as the US insurance company GoHealth, which recently completed its Nasdaq IPO.

The credit volume financed via auxmoney has increased more than twenty-fold over the past five financial years. The company's growth is driven by technological innovations along the entire credit value chain as well as advanced digital methods in risk assessment.

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Data source: Deutsche Börse AG                                                                  As at 30 September 2020

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