FAQ

Why is it so important to have sufficient equity?

Equity resources are becoming increasingly important for small and medium-sized enterprises, particularly in view of the structural changes in the capital market (Basel II). Having a sufficient equity base gives especially innovative, technologically-oriented companies the freedom to make their own decisions on investments in research and development as well as on their future course of expansion. Additionally, it prevents liquidity bottlenecks and facilitates future capital measures all the way to a stock exchange listing.

What is the German Equity Forum?

Since 1996 KfW and Deutsche B?rse AG have organised a German Equity Forum twice a year. At the spring forum fifty innovative and fast-growing companies have the opportunity to introduce themselves to specialised investors by way of information stands and brief presentations, to make new contacts and to raise equity. In addition, workshops on all aspects of equity finance and innovation are offered by the sponsors of the Forum. Generally more than 500 entrepreneurs, representatives of venture capital and private equity companies, banks and reputable consulting firms take part in the Forum. Thus, the German Equity Forum always offers an excellent opportunity to get oriented in the market and to test the market sentiment.

What impact does the German Equity Forum have?

Thus far, more than 1.500 companies have used the platform provided by the German Equity Forum, many of them with success. Half of the companies that presented themselves found an investment or cooperation partner within one year. The German Equity Forum enabled numerous companies to build up contacts that proved valuable for their initial public offering, and they have since been listed on the stock exchange. Therefore, the German Equity Forum is an integral part of the private equity market in Germany.

Whom does the German Equity Forum address?

The German Equity Forum addresses fast-growing and innovative companies. For those planning to go public the Forum also offers an appropriate setting for building up important contacts and introducing themselves to the financial sector. This spring 2007 companies from the pre-IPO phase (early-stage and growth phases) are invited to take part in the German Equity Forum. The Forum in autumn will then focus specifically on later-stage companies that soon have a chance to go public as well as on listed companies.

As regards the investors and consultants, the Forum primarily addresses representatives of VC companies, private equity companies, banks, corporate finance firms, institutional investors and business angels.

What possibilities are available for companies to present themselves?

Generally the individual companies may introduce themselves to qualified visitors in brief 10-minute presentations. Experts moderate the presentations and the questions afterwards. Initial contacts can be intensified in discussions later on. In addition, or alternatively, the companies have the possibility to present themselves via their own information stand.

What do the workshops and sector forums offer?

During the workshops participants have the opportunity to collect information about topics related to equity finance. The main topics will be, among others, raising venture capital, stages of equity finance and growth financing instruments including promotional programmes offered by the federal and Länder governments. Related topics such as preparing a business plan or obtaining international patents may be touched upon as well. Current trends and expert know-how are also offered in the sector forums, which will be moderated by renowned experts.