Götz Gleichmann and Redstone Digital launch BTG Bridge to Growth Fund for venture debt financing of young tech companies
With ‘venture debt’, the BTG fund brings an important and so far strongly underrepresented market and investment model to Germany. The fund is aimed in particular at start-ups and scale-ups that are already profitable and show solid growth but cannot yet obtain bank financing. The financing model enables companies to gain access to debt capital earlier and to acquire additional funds without diluting their equity base. The model is also suitable for bridging unforeseen events such as the Corona pandemic in the short term. The BTG Fund thus closes a central financing gap in the European market.
BTG gives investors the opportunity to invest in start-up companies with highly secured debt capital. This model offers them the advantage of reducing their investment risk by allocating the funds with fixed repayment periods instead of acquiring long-term direct investments. Venture debt investments offer a disproportionate ratio of attractive returns to manageable risk.
The fund is managed by Götz Gleichmann in close partnership with Redstone Digital, which is exclusive for the debt area. Investors and companies can thus access the partners’ many years of experience and great expertise. Thanks to high-quality investments, BTG can build a bridge to sustainable growth for both tech companies and conservative investors.
Götz Gleichmann says about the launch of the fund: “The venture debt model is still completely underrepresented in Europe. In the USA, where the concept has long been established, it already accounts for about 15% of the total VC market. The potential is therefore enormous and constantly growing. Thanks to the high security of the model, venture debt financing offers investors for whom the risks in the classic VC business are too high an ideal and low-risk instrument for entering the start-up sector”.
Samuli Sirén, Managing Director at Redstone adds: “The launch of a new fund is always good news for the start-up landscape. In the current situation this is more true than ever. We are delighted to bring venture debt to Europe on a large scale with the BTG fund. The time is long overdue for this step, as there are more and more successful ‘later-stage’ companies in this country that are ideal candidates for venture debt”.
About Götz Gleichmann
The focus of Götz Gleichmann’s entire professional life is on the development, growth and value enhancement of companies in different ownership constellations and objectives, both in high-tech and traditional sectors. For the last 11 years he has been successfully working as CEO of a VC/PE company in Hamburg. Götz Gleichmann has distinct expertise in the areas of strategy, M&A, post-merger integration, financing and professional coaching and is a “partner at eye level” of companies and entrepreneurs.
Redstone is the leading and innovative venture-as-a-service player in Europe, connecting established companies with ambitious founders. Among its long-standing customers are Deutsche Bahn Digital Ventures, Daimler, Berliner Volksbank Ventures and the Vogel Communication Group. Redstone has access to a database of more than 800,000 start-ups and to the specially developed, AI-supported analysis platform. Redstone also has an extensive network of international contacts to corporates, investors and various partners. BTG will use Redstone’s technology, network and expertise exclusively for private debt. In addition, Redstone initiates and manages specialized sector funds.