German technology-focused venture capital firm Triangle Venture Capital has sold majority stakes in the remaining portfolio companies from its first three funds for an undisclosed amount.
Uli Fricke, co-founding partner of Triangle, told PEO that 65 percent of each company has been sold to an unnamed European financial investor. “We sold the companies to a very well-established secondary investor,” she said.
Fricke added that Triangle will continue to manage the businesses.
Fricke said the company was not looking to sell the portfolio companies, but was introduced to the buyer, which made a compelling offer. “The pricing was very good, allowing us to make a very nice cash return to our investors,” she said.
Triangle is currently in the process of raising its fourth venture capital fund, which held a first close on €15 million in June 2004, before reaching €30 million for a second closing last September.
Fricke said the firm is on course to reach its target of €50 million ($62 million) this June, but added that Germany is still a tough fundraising environment for European venture capital.
“We have seen some gradual improvement from investors who are willing to look into European venture capital, with confidence building from successful exits from venture funds like ours,” said Fricke.
Limited partners in the fund to date include RWB, Capvent, 123 Venture and a number of German family offices. The vehicle will invest predominantly in technology-driven university and research spin-offs in Germany, with a specific focus on the IT and medical device markets.
In February, Triangle Fund IV made its first investment, injecting €3 million to start up operations at X-aitment, a spin-off from the German Research Centre of Artificial Intelligence. The business develops software systems to automate repetitive tasks in the creation of computer games.