Munich unicorn hothouse targets expansion, but discounts London

A famed Munich-based business course, which has spawned nine unicorns including Trade Republic and Monzo, is looking to offer its study programme in new European markets, but says that London is an unlikely destination.

The Center for Digital Technology and Management (CDTM), founded in 1998, is a joint venture between LMU (Ludwig Maximilian University of Munich) and TUM (Technical University of Munich), and has become a central cog in the Munich tech ecosystem.

Its main course is an add-on Master’s degree in Technology Management, encompassing areas such as product development, engineering, management, and entrepreneurship.

However, its picky selection policy means only around eight per cent of the 350 applications for the course from LMU and TUM students get in every six months. The students study at CDTM on top of their main course.

Monzo co-founder Jonas Templestein and Trade Republic co-founder Thomas Pischke are alumni.

Those that make the cut are the ones “that are willing to go beyond just getting good grades” and “question the status quo”, according to Jose Vega, part of the CDTM management team.

CDTM is also known for its close-knit community, with alumni donating funds, offering scholarships or returning to host or speak at CDTM events. Examples include Trade Republic sponsoring a recent hackathon at CDTM.

In 2023, CDTM started operations in Valencia, Spain, offering for the first time its Technology Management programme to a select group of students from the Universitat de València (UV) and the Universitat Politècnica de València (UPV).

Vega said that its next overseas market would likely be in a developing market, not a crowded market like London, as a developing market was more in keeping with the CDTM brand.

Vega said: "We have got a few in mind that could be interesting. We were part of the growth of the Munich ecosystem, so I think new ecosystems we are looking for are also ecosystems that are in development, where we can be part of the development from the beginning.

“I think it is a lot harder to establish a place like CDTM in a place where it already has a lot of players like London.”

In London, City University, University of London, King’s College London and Imperial College London provide various programmes, such as entrepreneurial courses and incubators and accelerators. Founders Factory and LSE Generate are also well known hubs in the capital.

Along with geographical expansion, CDTM also extended its brand earlier this year by launching a VC fund, backed by 316 CDTM alumni who are investing €8.2m in startups over the next four years.

Tech.eu spoke to a handful of CDTM alumni, which has spawned unicorns Monzo, Trade Republic, Tier Mobility, Personio, Forto, Razor Group, Cellares, eGym and Foodora.

Gyri Reiersen, co-founder Tanso, the carbon accounting startup, from the 2019 CDTM class, hailed its community ethos.

Reiersen said: “I regularly go back to the CDTM, either as a guest speaker, mentor or to participate in CDTM events or hackathons to continuously learn from the younger students, alumni or externals.

“For example, Tanso sponsored the recent CDTM hack together with OpenAI, Mistral, and other CDTM-affiliated startups, or I had a mentoring session with a visiting YC partner who offered office hours for CDTM founders.”

Gabriel Matuschka, partner at VC firm Fly Ventures, class of 2024, said his fund had backed a few CDTM startups.

He added: “We love to host CDTM startup tours in Berlin or London. I would do almost anything for CDTM people.”

Judith Dada, general partner, VC firm Visionaries Club, who met her partner at CDTM, said: “I go back regularly and still share my experiences with the active classes in various formats. I am also part of a group of alumni that are organising a large alumni summit to deepen connections in the alumni community this fall.”