Start-ups Investment Report

When it comes to their retirement, educators, judges, police staff, and many others employed by the state of Michigan (USA) can rest easy—not because of some innovation in senior care, but rather thanks to German start-ups. After recognizing the potential of European venture capital funds, the state made future-forward investments for its pension fund, which provides former and current employees with a pension as well as healthcare benefits—and manages over US$100B. In doing so, the state is securing strong returns for its employees.

“Untapped Potential: German Pension Funds Missing Out on European Startup Success,” published by Berlin-based venture capital group Redstone, has the statistics to prove it. According to their study, the combined company value of European start-ups and scale-ups increased by €2.5T between 2012 and 2022. This allowed investors to yield more than just higher returns compared to other asset classes such as bonds or real estate. As Redstone notes, the inclusion of VC investments also resulted in a notably lower level of volatility for the portfolio as a whole.

“Germany’s ability to generate attractive returns, including for retirement funds, largely depends on how competitive the economy will be in the future,” explained Maximilian Eckel, Managing Director of the WHU Entrepreneurship Center. American retirement funds noted this a long time ago and are already financing 10% of the capital of German start-ups, albeit indirectly through their participation in venture capital funds.

One start-up, co-founded by WHU alumnus Philipp Erler (Diplom, 2006), is already reaping the benefits of this model. Gropyus, based in Richen (near Heilbronn), operates out of a fully automated manufacturing facility equipped with 50 robots to produce components used in residential wall and ceiling construction. The finished components are made using hybrid timber construction and are then assembled at construction sites. This drastically reduces both the costs and the construction time needed to build new structures, which, in turn, helps address a current lack of housing in Germany. The start-up, which is continually expanding its capacity, also operates in a sustainable and resource-efficient way, assuming a circular and CO₂-binding production approach that results in significantly less material waste when compared to traditional construction methods. And now, the pension fund of the state of Michigan will participate in the company’s value growth. The fund acted as one of the new investors in a recent funding round, during which the company secured €100M.

German retirement and pension funds, by contrast, appear more reticent and focus more on the potential risks than they do the potential of such investments. Their financial participation in German venture capital totals less than 1%, as noted in Redstone’s study. When it comes to German start-ups that have “unicorn” status, these same funds invested only 0.2% indirectly via venture capital. “Of course, start-up investments should be made strategically and with forethought. But complete abstention means missing out on potential rewards,” says Eckel. “The meager participation of German retirement and pension funds primarily comes down to structural factors. Clear rules, professional investment vehicles, and long-term management would allow for an appropriate and responsible amount of venture capital to be established.”

The following is an overview of the investments made in WHU’s start-ups over the first three months of 2026:

January

- Langfuse, the Berlin-based start-up co-founded by Marc Klingen (BSc 2017), has kicked off the year with a big announcement. The company, which develops analysis tools in the artificial intelligence sector, has been bought out by ClickHouse.

- In an early funding round, HellGrün Energie secured one million euro. Based in Cologne, founder Roman Steigertahl (MLB 2014) is making advancements in sustainable energy solutions for private residences and small businesses.

- Sinpex, co-founded by Jan Spörer (BSc 2017), raised €10M in a series A funding round. The Munich-based organization automates customs and trade processes for internationally active companies.

- Philipp Weisbrodt (MSc 2016) and Gabriel Thomalla (BSc 2014) built Kaia Health in Berlin to offer digital therapy for those with chronic illnesses. The company was recently sold for €259M.

- Data protection and compliance are at the core of the business model of heyData. The Berlin-based start-up, founded by Miloš Djurdjević (BSc 2014) and Daniel Deutsch (MSc 2017) received €15M in a series A funding round to expand its business model.

- Vimag Labs secured €5M during a venture capital round. The deep-tech company, situated in Bangalore, was founded by Manish Seth (EMBA 2020). The start-up teaches machines to “understand” visual information in order to recognize errors in production, to track processes, or to direct complex industrial operations in a more precise way.

February

- With €17.5M recently raised in a series A funding round, Blockbrain, co-founded by WHU alumnus Honza Ngo (BSc 2020; MSc 2022), is advancing its development of a platform designed to analyze the cryptocurrency market and optimize portfolios in an automated way. The start-up specializes in real-time data and the use of artificial intelligence for the security of digital assets.

- Flinn, co-founded by Hasib Samad (PTMBA 2020), has positioned itself in the medical tech sector as a provider of AI-supported software that efficiently automates regulatory processes relating to medical devices. The company recently secured €16.8M during a venture capital funding round. 

- Circle Health has made alternative approaches to healthcare its mission. The company, co-founded by Jannik Tiedemann (BSc 2015), provides personalized ozone therapy for improved blood circulation and cardiovascular function and recently secured funds during a seed funding round.

- Co-founded by Frederik Krass (BSc 2013), Zenyum works directly with end consumers to provide them with invisible braces and other modern dental products. The start-up has now been taken over by Indian company MakeO.

- An early venture funding round resulting in over €1.8M will help Apartool, co-founded by Marc Cardellach (BSc 2014), expand its temporary lodging platform for business travelers. Its business model showcases furnished apartments located around the world and simplifies the booking and billing processes for today’s companies.

- After securing €13.2M in a seed funding round, Plato plans to continue expanding its AI-based sales software. Co-founded by Matthias Heinrich Morales (BSc 2019), the development platform helps wholesalers identify revenue opportunities and detect customer loss early on.

- In the field of impact finance, Chi Impact Capital’s acquisition of FASE, co-founded by WHU graduate Markus Freiburg (Doctoral Program, 2011), is making waves. The start-up assists social enterprises with fundraising and connects investors with sustainable business models across Europe.

March

- Upvest secured €90M during a funding round. The Berlin-based company, founded in part by Tobias Auferoth (Diplom 2007), provides an infrastructure for digital securities options and primarily targets finance service providers. 

- During a late funding round, Gropyus, founded by WHU alumnus Philipp Erler (Diplom 2006), raised €100M. The company focuses on the sustainable construction of residential homes for which planning and production are more closely integrated. With its robot-operated factory, Gropyus produces ready-made housing components, thereby lowering the costs of construction.

- Co-founded by Sebastian Waters (MSc 2012), InCirT develops specialized semiconductor solutions for high-frequency applications. The Aachen-based company secured €4.8M in an early funding round.

- Grocery delivery service Flink has received over €90M in growth financing. Founded in part by Julian Dames (MSc 2013) and Christoph Cordes (Diplom 2003), the company distinguishes itself from other providers thanks to its exceptionally fast delivery times.

- finperks is developing a platform through which banks and financial providers can offer their clients certain advantages. This includes rebates, gift cards, or exclusive deals, all of which can be integrated directly into the banking apps. In a seed funding round, the company, founded by Achim Bönsch, Sebastian Seifert (both BSc 2011), and Andreas Veller (MSc 2013), secured €3.4M.