URBANTECH VENTURE STUDIO - PowerPoint Presentation

1. URBANTECHVENTURESTUDIOby mantroBuilding digital assets

2. Our Venture Studio breaks the barriers of traditional corporate venturing and unleashes the power of scalable growthScalable InnovationCorporate Venturing / Innovation ProjectsVenture Studio(Corporate) Venture CapitalCorporation starts a new spin-off or internal project lead by own employees within the execution boundaries of the corporation. The purpose is to address a new or expand into a business sector.On the one hand corporates carry the full financial risk and management responsibilities. On the other they reap all the profits. As Venture Studio we bring industry leaders together in one batch. We find, validate, and spin-off relevant new ventures and match them with a team of serial entrepreneurs. We help to build the first product and bring it to scale stage.The risk of each venture is shared and everyone benefits from the upside. Decision-making is solely market-driven. (C)VC scouts promising startups to invest in. The goal is to participate on financial upside in valuation and to exit the venture later. Strategic CVCs attempt to add own capabilities like first clients, access to resellers, production lines, etc. beside money. Often later stage investment at high valuations. Innovation FlowInside outInside out / Outside inOutside inFinancing100% by CorporationSeed investmentDirect Investments or FundOwnership100% by CorporationFounder Team + Venture Studio (incl. Corp.)Founder team + VC investorsExecution BoundariesGovernance + internal processes + participationNoneNoneObjectiveStrategicStrategic & Financial (Balanced)FinancialSuccess Rate★☆☆☆☆★★★★☆★★★☆☆Scalability★☆☆☆☆★★★★★★★★★☆Strategic Impact★★★★★★★★★☆★☆☆☆☆Financial Value Creation★★☆☆☆★★★★★★★★★★

3. High execution quality in early-stage phase ensures exceptional value creationWhy Venture StudioVentureCapitalBuild + InvestDD + InvestHigh InfluenceLow InfluenceAdvisoryActive HelpActivities:2,4xMultipleCorporateVenture (Capital)0,4xMultipleVentureStudio3,8xMultipleFind + InvestMedium InfluenceProvide Assets

4. *Venture building is something you can learn. The average return on investment is higher for frequent business builders compared to less frequent business builders, recent studies show. We’ve learned it. By doing it. Organizations that launched 4 or more businesses experience an average ROI of 5+ times the investment versus less frequent business builders. On average, serial venture builders show a 2,2x times higher success rate by an 5x ROI on invested capital – “the game” can be learned *Success RatesInvestReturnInvestReturnLess than 4 spin offs done in 10 yearsMore than 4 spin offs done in 10 years

5. Invest in managed early-stage venturing leads to outstanding ∼34% IRR and up to 3,86x multiples. *Outstanding Value Creationup to40mEURup to2,4xup to3,86xVentureCapital VentureStudio up to 34% IRRby12m EUR InvestIn Series B-ExitVolume

6. UrbanTech is on fire with increasing investments in an underdeveloped market – it’s time to move now!What is UrbanTech& why it rocks$217trilReal estate is the largest asset class in the world*90%of a human’s life is spent in buildingsTHE REAL ESTATE INDUSTRY HAS GREAT SIGNIFICANCE35%of global CO2 emissions stem from RE13/16PosRE remains one of the least digitized industries in the world$38trilESG assets under management in 2021  $53tril in 2025*-6,3%Traditional real estate ROIs shrink in last 10Y*+$137trilProjected value creation potential in next 10Y+5%YoY$4.2trilYearly demand for city infrastructure to meet G20’s global growth targets** Based on 2021 5% growth

7. PropTech & Smart City Investments US, EU, DACHMarket34%* of the global real estate assets are in EMEA but so far less than 5%* of European VCs have identified PropTech as their investment focus.Now is the right time to invest in PropTech in Europe$39bnInvestmentsin US$75triAsset Vol.$5.5bnInvestmentsin EMEA$74triAsset Vol.$2.1bnInvestmentsin DACH$14triAsset Vol.$4bn$47bn$5bn$4bn$29bn$6bn$3bn$4bn*Total cumulated smart city and real tech*Total value of real estate assets and * MSCI real estate market size

8. Smart CityPropTechUrban tech provides huge potential combining real estate, energy, and mobility.What we look atDesignSoftware enabled design solutionsSmart City / Design / VR / BIM ConstructionHardware and Software to enhance construction processCollaboration / modular building / progress tracking / supply chainManagementSoftware to improve management processAsset- / Portfolio- / Property- / Energy ManagementAnalyticsHardware and Software enabled data processingBig data / IoT / Smart Sensors / prediction / mappingTransactionSoftware driven B2B and B2C transaction platformsSales / Rents / Financing / Equity / Insurance / Home servicesShared Economy“Real Estate as a Service” SolutionsCo-Working / Co-Living / hospitality Smart EnergySun Energy, Wind Energy, Hydropower, Biogas, Geothermal powerSmart GovernanceCity services online, intelligent and automated workflowsSmart WasteCradle to Create, intelligent Waste Management, Urban Mining and Re-useSmart ServicesPublic APIs, E-Government, Crowdfunding, new business models,…Smart BuildingEnergy optimized Redevelopment, Temperature, Electric, Usage, Community, and more –Monitoring, Photovoltaic System, Intelligent HeatingSmart FarmingVertical Faring, Urban Gardening, Facade Greening, Urban Farming, Indoor Farming,… Smart SensoricsTemperature, Weather, Usage, Health-Check, …Smart MobilityCarsharing, Bike sharing, Last-Mile Mobility, Public Transport, Smart Logistics, Micro-Bus, Ride Haling, MAAS,…

9. MANTRO IS THE LAUNCHPAD FOR POWERFUL & SCALABLE IDEAS.Our Vision & MissionOur venture studio supercharges the Erfindergeist to build disruptive ideas into investable and scalable companies together with great founders.We pioneered the structured approach of venture building for more than 20 years and established a machine room to build and invest in disruptive companies from their very beginning.

10. We allocate a max. of EUR 800,000 per venture and push it to Series A 2x time faster than first time founders.*Our ApproachbuildinvestAfter successful proof of business, we scout for a perfect matching co-founding team that is experience in scale-up the specific venture.With an additional capital invest and future team ramp up we push the venture forward to proven product-market-fit and operational independence.We’re putting 100% of our focus on identifying the most promising opportunities for scalable business in the UrbanTech market. Our team of experienced entrepreneurial minds uses its expertise in venture building, product design, technical engineering, and marketing to test and validate those businesses. Pre-Seed Venture Ramp-Up (650,000)Convertible Loan (~150,000)Mentoring & AccelerationLater Stage FundingTeam Ramp-upexternalSeriesAVentureStudioSeedInvestVentureStudioexternalSeriesB ... D* From Seed to Series A in Median a venture need 18 months - we tackle this phase in 9 months du to our VS logic:

11. We combine the best of operational technical excellence with VC mindset to build high-growth businessesHow we do itBuilding capabilitiesInvestment capabilitiesNetwork to corporate and governmental organization in UrbanTech area+1.000 DDs in PropTech in the past 5 yearsStartup Scouting at e.g. CDTMProblem DiscoveryIdentifying problems in the market worth solvingViable opportunity15 years experience in building: 400 projects, 28 ventures (some of them in UrbanTech)Partnership to Entrepreneurship centers like WHU, TUM, THD, THI, Uni St. Gallen, …Strong network to major B2B companies in Real Estate, Construction, Tech to validate ideas65 Experts on board for relevant input generationExperienced venture team as serial entrepreneurs or +5Y expertise in sectorTeam of Marketeers, Tech, Venture Architects to run ideation for go-to market execution Validation expertise of Market Size per model through detailed analysis Busines model evaluationBusiness Case sanity checkFirst KPI settingExpertise in setting up financial modelsVenture funnelPossible solutionFirst productProduct-Market-FitReady VentureIdeation ProcessIdea generation to find suitable solutionsMVP Build + ValidateBuild and test MVPs in a fast iterative processSpin-Off + InvestFound venture, recruit Co-Founders, reach $35k MRRScaleSeries A InvestReady-to-go sourcing structure to find and onboard an optimal venture teamKnow-how to establish a growth team and tool setReady-to-go founding structure optimized for later financing rounds with institutional investorsEstablish growth model and lead KPIs to measure for product-market-fitKnow-how to establish OKR-based scale metricsActive board member to help with scale-upLarge network of investors (VCs, Family Offices, Business Angels, Corporates, PEs)

12. Our way to success - how we build our idea funnelHow we build the funnelSourcesPrioritizationSeed Investment DecisionFoundation & InvestmentMarket TestValidationIncubationGo-2-MarketValidationPartner-Ideasmantro-BacklogTrends & ResearchBacklog & Knowledge Base

13. Budget allocation structure per batchHow we use the money50%42%8%Venture Studio PersonnelVenture Seed Costs (Marketing etc.) & Venture Convertible Loan InvestmentVenture Studio Management & InfrastructureRealValue CreationFocus on venture and tech value creationStrong internal team of experts dedicated to venture activitiesLow overhead costs due to existing & optimized mantro infrastructure

14. 90% of startups fail1. - The venture studio approach addresses relevant reasons for failure in the early phase & increases success rateHow we winBusinessFundingIdeaTeamWrong teamLose focusWrong skillsDisharmony among team/investorsWrong incentivesNo product-market-fitPricing/cost issuesPoor user experiencePoor marketingNo access to investorsLate fundraisingHigh burn rateUnattractive SetupLegal challengesVague business caseWrong North Star metricOutcompetedTeam identified for concrete idea based on personas neededOrganizational support for team and venture ramp-upExperienced domain experts find and build the product as well as the go-to-market approachCustomer Development-focused work modeSmall and efficient team of expertsLarge investors networkFundraising supportDay-1 coaching and supportAccess to all relevant resources to gain speed + tractionPermanent interaction with experienced investorsReasons of failureVenture Studio Mitigations

15. What makes the mantro Venture Studio a unique opportunity for youBusiness builders in all relevant areas within one team are 2.2 times more successful than classic VC investmentsDe-risking of venture building through mitigation of all typical early-stage risks with concrete actionsReduced time to Series A (on average) by 50% compared to average VC-funded venturesTechnical + Financial expertise in one company As institutional co-founder we generate above-average returns due to founder sharesFree from corporate boundaries to build the perfect solution for the market and not for one single investorProof of concept: mantro has build more than 28 ventures in last 7 yearsIncluded follow-up direct investment opportunity for Venture Studio investors. The USPs

16. We done it before …Our Track RecordAnd many more … We’ve built 28 companies so far and managed to establish 22 of them successfully on the market, resulting in 5 exits with a minimum valuation of 4X based on our investment. Since day 1, mantro remains the home of entrepreneurship and Erfindergeist

17. … together with great partnersOur Track RecordAnd many more … We’ve built and invested alongside well-known international partners from various industries to foster ne innovations in spin offs within all kinds of markets and building types.

18. … and invested in rising starsOur Track RecordAnd many more … We’ve invested in rising stars in the tech eco system alongside well-known international VCs focused in UrbanTech ventures that have a game changing character.

19. We optimize the Seed phase of the venture journey and deliver outstanding investment opportunitiesOur FocusEarly-stage build+invest with a focus on tech solutions in UrbanTechFocus geographies DACH, UK, and NordicsDeep tech solutions / competitive advantage through technologyHire strong founder teams with relevant industry experience Avoidance of capital-intensive and high-risk B2C cases; focus on companies with a strong B2B componentWe build a risk-adjusted portfolio combined with an attractive return potentialInvest ranges between EUR 500,000 to 1,000,000 until Series A readinessIn order to support outliers our investment partners can execute pro-rata rights via Special Purpose VehiclesIn order to control high quality execution after Series A the Venture Studio take over a board seatInvestment per Spin-Off0.5m - 1mEURFocus & RationaleBuild StagesVenture Studio Build-Phase (Seed-Phase)Series ASeries BSeries CPro-rata investment rightExternal + potential follow-on investmentExternal + potential follow-on investmentExternal + potential follow-on investment

20. Our investors gain access to the forefront of UrbanTech innovation and scalable strategic investment opportunitiesTo sum it upAccess to StartupEco System Access to other startups in the field of UrbanTechBroad technological access Operational support in the realization of digitization projectsImplementation of innovative startup solutionsAccess toUrbanTechInsight into startup dealflow and portfolioIndividualized exchange on digital trends and technologiesSparring partner in the due diligence processAccess to technology in Venture Client model

21. mantro.venturesmantro venture studioJoin us to power Germany’s future UrbanTech outliersTerms & StructureStructure & TermsWe have been building and investing in early-stage innovation from Germany and Europe more than a decade, delivering best-in-class performance, backing companies that disrupt industries, incl. UrbanTech.As we begin raising EUR 5-10mio for our dedicated UrbanTech Venture Studio, we invite you to join us on this journey, supporting UrbanTech innovation from Europe on its path to global success.Partnershipmantro venture studio Batch I GmbH & Co. KGBatch sizeEUR 10mio (First closing EUR 5mio)TimingFirst quarter 2022Operational Runway5 years (+2 one-year extensions) / Building period: 2 yearsMarkets & StagesPropTech & Smart City; General: Markets and industries characterized by technological innovation and high growth; disruption driven by digital transformationFounding + Pre-Seed + Seed; initial investment EUR 0.25-0.80mioA rounds (SPV to keep ProRata right); follow-ons EUR 1.0-4.0mioPreferred Return (PR)7%Proceeds after (PR)50% Investor / 50% Management of BatchPartner commitmentEUR 1mio (minimum)Target multiple3,8x (Gross multiple)Venturing PrinciplesPG 212022

22. Years of Venturing experience21 years12 years (2 funds)23 years23 yearsFormer work experienceFounder & CEO at mantro, CEO of multiple venturesCo-Founder Surplus Invest, Timehouse, 77store.com Founder & CPO at mantro, CEO of multiple venturesFounder & CTO at mantro, Interim/Fractional CTO in multiple venturesComplementary backgroundsBusiness Economics & Computer ScienceInternational Business Business Economics & Computer ScienceBusiness Economics & Computer ScienceRole in Venture StudioStrategy & InvestorsInvestments & FinanceProduct DesignTechnology & DevelopmentOther relevant experienceSpeaker & Author, Board member at ZF, Business Angel and Board member at various startups, Mentor at various innovation programs & acceleratorsIn venture eco system since 20 years / expert for B2B SAAS business models / hands-on experience as operational VC Investor and Business Angel for the last 12 years/ SpeakerAdvisor for various startups, mentor and lecturer at entrepreneurship programs at University of St. Gallen, TH-Deggendorf, TH Ingolstadt, TU Munich26 years of hands-on tech/dev/devops/ops/itsec experience, from ASM to FAAS.Unique composition of industry knowledge and venture capital expertise TeamManfredTropperJannisRoserMarkusOrtmannBenjaminSchüdzig

23. Get in touchContactManfred TropperCEOTel.: +49 (178) 274 524 0E-Mail: mt@mantro.venturesAppoint.: https://mantro.ventures/mtJannis RoserCFOTel.: +49 (151) 465 578 21E-Mail: jr@mantro.venturesAppoint. : https://mantro.ventures/jr

24. Future-ready organizational structure allowing follow-on direct investmentsHow is it organizedmantro Venture Studio Management GmbHManfred TropperJannis Rosermantro Venture Studio Batch 1 GmbH & Co. KGVenture 1 Invest GmbH & Co. KG (SPV)Venture 1 GmbHGeneral PartnerLimited PartnerShareholdermantro digital GmbHService ContractInvestor 2Investor 1Investor n…Limited PartnerGeneral PartnerLimited PartnerMarkus OrtmannBenjamin Schüdzig