Earlybird Venture Capital offers U.S. style early stage financing, active
involvement and management support


Hamburg / Munich, May 1999. Earlybird Venture Capital recently closed its first
two pre-seed funds raising a total of DM 85 million from private and institutional
investors. With additional investments from government support programs designed
to foster high-tech start-ups in Germany, those funds will provide more than
DM150 million of financing to new ventures over the next three years.


Based on the American model of venture capital, Earlybird is the first partnership in
Germany to specialize exclusively in seed, start-up and early stage investments.
“We invest in excellent people with good ideas even if they have not yet founded a
company \", explains Christian
Nagel, one of the partners of Earlybird. In its search for suitable investments,
Earlybird is concentrating primarily on technological innovation and rapid growth
sectors such as information and communication technology, new processes and
industrial technologies (sensors, micro-mechanical systems etc.), and life science
(medical technology, biotechnology etc.).


Support by entrepreneurs for entrepreneurs

Since all of its partners previously have worked as successful entrepreneurs and
management consultants in different sectors, Earlybird can draw on a wealth of
experience to provide advice and active support to founders. Rolf Mathies (ex - Bain
& Co.), Christian Nagel (ex - McKinsey & Co.) and Hendrik Brandis (ex - McKinsey
& Co.) founded Earlybird as a private venture capital company with offices in
Hamburg and Munich. Roland Manger joined in December 1998 as the fourth partner.
As a co-owner, he previously directed Business Development and Marketing of
Cybernet Internet-Dienstleistungen AG, Munich, which through its US holding
Cybernet Inc. has been publicly listed on the high-tech segment of the German stock
exchange as a national issue since December 1998.

Earlybirds partners know from their own experience that entrepreneurs need
comprehensive support, especially in the start-up phase. “Founders quickly learn
what they need besides just capital: a network of contacts, practical advice,
know-how, access to talent pools”, emphasizes Rolf Mathies. Earlybird supports
entrepreneurs early in the business planning phase, and assists in the transformation
of an idea into a viable business plan.

A network of experienced industry specialists serves on the advisory board and
supports Earlybird in providing strategic advice and operational support to its
portfolio companies. The advisory board consists of highly qualified scientists and
entrepreneurs – two or three for each technology sector in which Earlybird invests.
Beyond that, the associated companies also benefit from the partners’ many years
of experience with leading international management consulting firms and from
their extensive network.

Generally, Earlybird only invests in complete management teams –
covering all critical skills and backgrounds. “In today's rapidly growing technology
sectors it is not possible to succeed as a single individual”, Dr. Hendrik Brandis
confirms.


Performance oriented, open partnership
The quality and range of support provided to start -up ventures are some of
Earlybirds foremost strengths. To this end, Earlybirds open partner structure
modelled after leading U.S. management consulting firms helps attract outstanding
talent. It creates an attractive work environment and provides all professionals the
opportunity for a full and equal partnership in due course based on individual
performance.

“Earlybird Venture Capital aims at a leading role in the early stage venture capital
market in Europe during the course of the next few years”, Roland Manger points
out the company vision. “To achieve our goal, we are planning to set up further
funds and open new offices.”


Most recent investments confirm focus on highly innovative areas

During the last few months, Earlybird invested in a number of highly innovative
businesses, such as Amaxa GmbH, Cologne (innovative transfection reagents) and
Bernina Biosystems GmbH, Munich (oral drug delivery) in the life science sector,
abaXX Technology GmbH, Stuttgart (solutions for interactive electronic
commerce), Cortologic AG, Berlin (speech compression, neuronal networks),
GMD Gesellschaft für medizinische Datenverarbeitung mbH, Cologne (platform for
clinical information management) and iXEC GmbH, Hallbergmoos (knowledge
management on the basis of intelligent multi-agent systems) in the information and
communication technologies sector, as well as IDM GmbH Infrarot Sensoren,
Lindau (infrared sensor technology) and PNP Luftfedersysteme GmbH, Parchim
(innovative automotive components) in the new Processes and technologies sector.
Over the next 12 months Earlybird plans to invest in about 15 to 20 new ventures.