German Startups on Track for Potential Unicorns and Bigger Exits with New PE Fund

What makes the problem particularly acute in Europe is that large European industrial or corporate giants have been reluctant to acquire or acqu-hire startups, for fear of getting bogged down in a bureaucratic quagmire. This reluctance has led to a lack of viable exits for European startups, which has hindered their growth and prevented them from becoming global players. Thus, the traditional path to success for European startups — acquiring a large company — remains largely unavailable. With so few viable exits available, many young companies in Europe are stagnating or even dying off altogether.

The competitive landscape for European startups is stiff, with many of them choosing to head to the United States in order to achieve scale and expand their reach globally. In addition, the US is one of the few markets where a startup can exit through either selling to a global tech platform or going public. This allows European startups opportunity to grow rapidly and have greater impact on the world stage.

The German private equity firm, Fresenius Kabi, has launched a new investment fund that is specifically aimed at solving the problem of student loan debt. The fund will make investments in companies or projects that can help struggling students pay off their loans quickly.

According to FLEX Capital, the reason that it has gone down this unusual route is because of the increasingly challenging environment for tech companies in Germany. With competition increasing from abroad, it sees merging medium-sized German-speaking tech companies as a way of giving them greater scale and better chances of success.

The Association brings together a group of passionate individuals who believe in the potential of founders and their companies. These include fund of funds, institutional investors from Europe and the USA, and the founders of some successful European companies. Together, they share their expertise and help each other to achieve success.

One potential opportunity for businesses in the DACH region is to target small and medium-sized companies that generate €5-30 million in annual sales. These businesses are typically more agile and have a better understanding of their customers’ needs, making them an ideal target audience for innovative software and Internet solutions. By becoming known as a provider of quality services to these companies, businesses in the DACH region could carve out a dedicated market segment, benefitting both themselves and their customers.

Flex Capital’s new software fund will provide financial support for companies that are looking to innovate and grow. The DACH region is experiencing a growth in software and tech companies, which is vital for the economy. This new fund will help these businesses to continue success and growth.

FLEX Capital has swiftly and efficiently acquired thirteen software companies in 2019, positioning the firm as a leading player in the software industry. The acquisitions have included Nitrado (multiplayer game hosting), ComX (a B2B sales enablement platform), EVEX group (for hearing care professionals and opticians), an OMS group (a software group for output management), and more. With experienced managerial staff and a strong focus on customer satisfaction, FLEX Capital is well-equipped to grow its portfolio of businesses.

FLEX Capital is a venture capital firm founded in Berlin, Germany with focus on seed and early stage startups. Felix Haas, the founder of FLEX Capital and best known for co-founding Amiando and IDnow as well as being the co-organizer and host of Bits & Pretzels Germany’s largest founders’ event, is an experienced entrepreneur and investment advisor.

In the Haas FLEX strategy, the company buys 51% or more of a startup, then combines them with two or three other competitors. The goal is to create a “much bigger leader” with more revenue and profit. The startups are then big enough for either an IPO or to be sold to private equity firms.

Henceforth, startups in Germany can expect a new exit opportunity as the country’s dominant car manufacturer Volkswagen AG prepares to spin off its value-added mobility business into a separate, publicly traded subsidiary. The move is seen as an attempt by VW to shore up its finances and reset the company after it was caught illegally cheating on diesel emissions tests. The planned spinoff is expected to create around 20,000 jobs.

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Kira Kim

Kira Kim is a science journalist with a background in biology and a passion for environmental issues. She is known for her clear and concise writing, as well as her ability to bring complex scientific concepts to life for a general audience.

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