Deutsche Bourse launches Venture Network to fund young growth companies

Source: Deutsche Bourse

Today Deutsche Börse launched its “Deutsche Börse Venture Network” together with State Secretary of the Federal Ministry for Economic Affairs and Energy, Matthias Machnig.

The programme aims to improve funding opportunities for young growth companies. The official opening ceremony was attended by 27 companies and 42 investors already registered on the platform. The Deutsche Börse Venture Network brings young and high-growth companies and international investors together, providing opportunities for effective growth funding and the development of an extensive network.

Deutsche Börse Venture Network comprises a non-public online platform, where funding rounds will be initiated, along with training and networking events.

Federal Minister for Economic Affairs and Energy Sigmar Gabriel: “Young up-and-coming growth companies make a very important contribution to creating high-skilled jobs and securing the competitiveness of our economy in the future as well. However these companies are often unable to make optimal use of opportunities because of a lack of funding in the capital-intensive growth phase. For this reason, I invited a small group of highly ranked experts to a round-table meeting last December. We discussed how we can offer even better support to growth-phase companies. The stock exchange plays an important role in this as a source of funding. I would like to thank Mr Preuss and Deutsche Börse AG for having taken up the initiative so quickly and having made a key contribution with the “Deutsche Börse Venture Network” programme to enabling young companies to gain access to funding. The programme is an important component to achieving our common aim of strengthening IPOs in Germany. I am convinced that the programme will contribute to improving the funding situation of young growth companies in Germany.”

“Deutsche Börse Venture Network is one of our contributions to improving the environment for young growth companies in Germany to make it easier for them to raise capital and potentially float on the stock exchange as well. We are convinced that the programme we presented today will greatly contribute to the promotion of growth funding in Germany, and we look forward to successfully collaborating with all those involved,” said Andreas Preuss, Deputy CEO of Deutsche Börse.

Growth companies have to meet certain selection criteria to qualify for participation in the programme. For example, they must be in what is known as the growth, later-stage or pre-IPO phase and have proven initial business success. Other platform membership criteria include key figures such as revenue, revenue growth and/or annual net profit. Growth companies will have the opportunity to present themselves directly on the online platform, independent of appraisals undertaken by investment banks and intermediaries.

Alongside the online platform, Deutsche Börse Venture Network also has an extensive event and training offering. This includes developing an efficient network, giving participants access to a broader group of multipliers, for example politicians, mentors and experienced entrepreneurs, and enabling them to attend exclusive events with a small number of participants, such as family offices, with full confidentiality.

An extensive training and workshop offering allows growth companies to expand their knowledge of all issues related to capital market funding. This enables companies to continuously prepare also their own reporting and corporate governance structure to meet capital market requirements. In addition, the offering contains what are known as matching events, which include investor conferences in Germany and abroad.

The platform offers German and international investors from the private equity, venture capital and family office areas, as well as high-net-worth individuals access to a range of European growth companies.

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