German/US venture capital firm Techno Venture Management has closed its latest fund TVM V Information Technology at EURO128 million. Fund raising in 2001 and 2002 proved increasingly challenging and so the firm was forced to reduce its fund size from its original target of EURO250 million.
Given the changing environment for venture capital investing, TVM decided to reduce the targeted fund size rather than shift its strategy of investing in early stage German and US companies, explained Friedrich Bornikoel, managing partner at TVM. “Actually, this fund size is quite similar to the EURO150 million allocated for portfolio companies in the information and communications technology sector in our EURO300 million TVM IV fund. The TVM V IT fund puts us in a position to invest in 15 to 20 early stage companies in the next three years.”
Since 1983 TVM has raised EURO1.097 billion over five fund generations. In its new fund it has retained the support of many of its long-standing investors and has also attracted new investors. Investors in TVM funds include Adveq, Frank Russel Capital, GE Capital, the Government of Singapore, NIB Capital, Siemens Venture Capital and UBS. These investors give TVM a strong base not only in Germany and Switzerland, but also in the US and Asia.
UBS Warburg acted as placement agent for both TVM V Information Technology and TVM V Life Science Ventures. Unlike the tech fund, TVM’s life science fund last year overcame tough fund raising conditions and managed to raise EURO336 million, some EURO86 million above its initial target.