German Startups Group, a VC investment firm with stakes in high fliers such as Delivery Hero, SoundCloud and Mister Spex, as well as promising German startups like JUNIQUE, Book A Tiger, WunderCar and Itembase, is planning to go public on the exchange's SME-fit Entry Standard.
One of the most active venture capital investors in Germany's tech sector, the Berlin-based company says expected issue proceeds are to be used mainly to purchase shares in startups over the next two years. A timing for the IPO was not given.
In a statement, German Startups Group says it "feels that successful exits and other positive market trends have resulted in more new companies being founded in recent years" and that it believes "that the influx of more new founders and the presence of foreign investors have contributed to the development of the German venture capital market".
Perhaps more importantly, German Startups Group says it has been profitable ever since its first full year of business, according to International Financial Reporting Standards, and generated net income of €1.44 million in financial year 2014.
From 1 July 2012, to 31 March 2015, the company claims to have achieved a gross annual return of 30.5% on its average invested capital, which it also says it deploys regardless of company stage of maturity. German Startups Group often purchases shares owned by existing shareholders of startups in so-called 'secondary transactions'.
Christoph Gerlinger, founder and CEO, believes the company is in a strong position:
“Thanks to our excellent market position, reputation and high profile as one of the most active venture capital investors in the tech sector in Germany, I firmly believe that a successful IPO will give us excellent opportunities to increase the shares we hold in selected portfolio companies and expand our portfolio to include attractive shareholdings. With this move, we also offer investors in Germany access to what we consider to be an extremely attractive market segment,” Gerlinger added.