German seed investor High-Tech Gründerfonds (HTGF) today announced backing from private investors Metro Group and Media + More Venture for its second fund, challenging the sentiment that some European investment funds will struggle to stay afloat in 2013. The fresh round leaves HTGF’s second fund with a total of €301.5m in invested capital.
Media + More invested €3m to the investment fund, while Metro would not disclose the amount it put in. Media + More Venture is a holding company made up of three publishing groups: Badisches Pressehause, Druck und Medien Heilbronn, and Rhein Main.
Tilmann Distelbarth, publisher of Heilbronner Stimme (one of the publications from Druck und Median Heilbronn), explained the investment as follows: “Digital services, for example, services for the advertising industry and online marketplaces, are business fields that will become more important in the competitiveness of the publishing industry. With the investment in HTGF II, we will have direct access to such innovations.”
HTGF is the largest public-private fund for seed investments in Europe, usually providing around $500,000 in initial funding for young businesses, in return for a 15 per cent shareholding. Some of the notable Berlin-based startups the fund has helped get off the ground include 6Wunderkinder and Trademob.
So far, there are seventeen private investors in HTGF, though it is primarily a public fund.
Image credit: Piggy bank – flickr user 401 (K) 2012
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