The Auto1 used car platform is pushing forward: Founded only nine years ago, “wirkaufendeinauto.de” wants to raise more than one billion euros with the IPO in Frankfurt. This year, Berlin was the first company to launch plans to issue shares in Frankfurt am Main on Wednesday.
Auto1 intends to give three-quarters of the planned revenue of approximately one billion euros from the issue of new shares to the expansion of the new Internet platform Autohero, which aims for a company for private buyers of used vehicles. “We want Autohero to become the leading online car dealer in Europe,” said Christian Bertermann, co-founder and CEO, who founded Auto1 in 2012 with Hakan Koc.
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Bankers and analysts estimate the market value of Auto1, according to financial circles, at six to eight billion euros. In addition to the company itself, some of the 22 investors also want to sell shares that have invested $ 1.4 billion in the company over the past few years. In addition to the company’s founders, who still hold about 30 percent of the shares, Softbank is Japan’s largest technology investor with 20 percent.
Auto1 is officially heading for the first list by the end of March, but from the official announcement to the first list it usually only takes about four weeks. The fact that managers and bankers no longer travel around the world to meet potential investors in a corona pandemic, but instead hold video conferences, has relatively shortened the time required.
Start-ups can handle the crisis well
According to the study, the German starting landscape has already coped quite well with the corona crisis. According to a study by consulting firm EY, published on Wednesday, many start-ups had big problems, but many who feared a “start-up” did not take place last year. This is also due to the continuing flow of money from investors to founders in this country.
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In 2020, start-ups received 5.3 billion euros from investors, which is 15 percent less than in the record year of 2019, according to a study available to the German news agency. Large stores over 100 million euros were rare. However, 5.3 billion was the second highest value in recent years, and more start-ups came into investors’ money: The number of funding rounds rose by six percent to 743 – a record high.
“Venture capital investments have a corona effect,” said Hubert Barth, CEO of EY Germany. This can be seen mainly in the decline in large deals, while there have been more small rounds of funding.
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But it’s too early to make it clear to start-ups, says EY. Due to the suspended insolvency obligation, it is not clear how many small companies are doing, which are not in the center of investors’ interest and can be fully financed from their own resources.
More money at start-up medical facilities
Start-ups depend on money from investors because they usually do not make a profit yet. Funds and large companies invest capital in promising companies in the hope that their business ideas will win out and bring them big profits.
With their ideas, start-ups are seen as important drivers of innovation for the economy. The corona crisis has dampened the long-standing boom on the scene and made it difficult for young companies to do business. To prevent damage, the federal government supports start-ups with billions.
Hotspots are Berlin and Munich
According to EY, during the corona crisis, significantly more money flowed into healthcare start-ups, but mobility companies were also very popular with investors. The largest transaction went to Auto1 in 2020. At that time, Berlin chose 255 million euros as a platform for used cars. In second and third place is the funding of 218 million euros for the Munich developer aerotaxi Lilium and more than 212 million euros for the Berlin start-up Tier Mobility, which lends electric scooters.
Of the five largest rounds of funding, four were in Berlin and one in Bavaria. Munich has established itself as number two, said EY partner Thomas Prüver. The founders from Bavaria collected 1.5 billion euros, which is about half more money than the competition in the initial fort in Berlin (3.1 billion).
“Munich and the Munich area have specific technological strengths and complement Berlin perfectly.” Other German sites would have a relatively difficult period last year, which should remain in the new year. “Really large stores are increasingly being discussed in Berlin or Munich.” (Dpa / rtr)