FAQ

How can I pitch my business to Creathor?

Please send your investment proposal to businessplan@creathor.com. This will make sure we will review your material and get back to you as soon as we can.

Which areas do we invest in at Creathor Venture? Which areas do we avoid?

We invest in all technology-related companies. These companies must be technology-based, use technology to create a unique product or service, or apply technology in a way that significantly alters a business model or market, or creates an entirely new one. We have a very broad definition of the term “technology” here, meaning that even business models that are not technology-driven but run on a technical platform (e.g. the Internet) are of interest to us. We do not invest in companies that do not have any ties to technology. This includes fashion brands and advertising agencies, for example.

FAQ

We invest in every stage of business, from “seed” (very early on) to “late-stage” (mature) companies. Consequently, a business does not necessarily have to be generating revenue. However, existing revenues do increase our likelihood of making an investment decision in favour of a specific company.

How much is invested per company or per financing round?

We invest up to ten million euros per company over the entire period of participation. However, we do this in several increments or financing rounds. This means that we contribute anywhere between 0.1 million and three million euros per financing round. As a rule, the amount invested per financing round is somewhere between 0.5 million and two million euros.

How large is the Creathor Venture fund?

We currently have approximately 220 million euros in four funds. Our third fund, which we use for active financing projects, has a volume of approximately 80 million euros. It was established in 2011 and has a term of up to 12 years.

Where does the money in the fund come from?

We have a select group of investors in our fund. In general, these are well-known financial institutions and private investors. Unlike virtually all other venture capital investors, the Creathor team is its own fund’s largest investor.
Our Creathor Venture Fund II is also backed by the ERP-EIF Fund of Funds and the European Union’s “Multiannual programme for enterprise and entrepreneurship (MAP)”.
Moreover, the European Union also supports our Creathor Venture Fund III with funds from the “Competitiveness and Innovation Framework Programme” (CIP) and resources from the “ERP-EIF Fund of Funds” along with the LfA – Gesellschaft für Vermögensverwaltung mbH asset management society, both of which are facilities of the European Investment Fund (“EIF”).

Does Creathor sign Non-Disclosure Agreements (NDA)?

We receive over a thousand business plans each year. If we were to sign an NDA for each request, this would have to be legally checked by an attorney, then possibly negotiated, archived and also compared with existing NDAs to identify possible violations. The time and money needed for this procedure would neither be proportionate for us nor for the company.

Also, as a venture capital investor we do not have the resources to exploit supposedly confidential information ourselves. We are not an incubator or “company builder”. Furthermore, our “deal flow” and the confidence of companies that are introduced to us is crucial for our business. If we abused it, we would remove our vital business foundation.

Finally, we are member of all relevant venture capital associations (BVK, EVCA, SECA) and thus already subject to rigorous standards to maintain confidentiality.

What is the extent of Creathor Venture’s involvement in a company? Are members of the Creathor Venture team also on the advisory board?

We are active investors who do not interfere with daily business operations. So we normally take a seat on the advisory board, with the primary objective of being a constructive “sparring partner” for the company’s executives. This enables us to address any challenges – whether strategic or operational – together as a team.

Does Creathor Venture work with other investors?

We are happy to work with other investors.

How quickly can Creathor Venture make an investment?

We can act very quickly and complete the investment process within a period of four weeks, from the initial meeting to the certification of the deed. Naturally, this is highly dependent upon a company’s situation and the effort involved in performing due diligence. The process generally takes one to two months.

How does Creathor Venture ensure confidentiality in the handling of information it receives?

Our daily business is naturally built on trust. We would not be able to reflect on over 30 years of success in the venture capital business if we did not take confidentiality seriously. In addition, we are a member of all of the key associations involved in creating relevant guidelines.

How long does it take to receive feedback?

It may take up to two or three weeks for you to receive feedback. We are normally able to respond more quickly, but depending on our workload, it can take a bit longer in some cases.