Nanomaterials for treating wounds, 3D-printed implants, synthetic fuels: these are just a few examples of the new future technologies supported by Evonik Venture Capital, a global venture capital business that has invested in 19 startups and eight funds since 2012. Their work is geared toward more than just the desired return on investment: “Everything we do has strategic importance for Evonik too,” says Bernhard Mohr, who heads up Evonik Venture Capital. “When we invest in a startup, then we want to work together closely and in a spirit of trust—because that will allow us to tap into new technology and business fields more quickly.”
From its sites in Germany, North America, and China, the VC team reviews around 1000 startups each year. “The most important question for us is, ‘Does the company have pursuits that overlap with our innovation and growth areas?’” Mohr explains. “If it fits into that mold, then we immediately bring the corresponding business units into the loop. They can help us assess and shape the partnership—when we acquire a minority share, we usually conclude a cooperation agreement too.”
Investments are planned for periods of three to five years: “And if they’re a really good fit, then we’ll acquire the startup in its entirety,” Mohr says. “Take Structured Polymers, for example: our High Performance Polymers (HPP) business line bought that 3D printing company in 2018.”
Evonik VC does not focus solely on the growth phase—it engages in the early phase as well, primarily through investment funds such as Germany’s High-Tech Gründerfonds or the GRC SinoGreen Fund of China. “These fund investments also serve as a lighthouse for us, generating visibility and giving us insight into exciting technologies,” Mohr observes. “Sometimes you just really need to get on board early if you don’t want to miss the train.”