On the heels of Microsofts acquisition of the Berlin startup darling 6Wunderkinder for a price between $100 and $200 million, the debate rages on about whether Berlin startups should be bolder and wait longer for an exit.
The consensus in the Berlin startup ecosystem is that we are still missing one extraordinarily big success. Several recent exits hovered in the hundreds of millions of dollars range, including Sociomantics $200 million exit to dunnhumby Ltd., the OpenTable clone Quandoos$219 million acquisition by Japans Recruit and the aforementioned 6Wunderkinders sale to Microsoft. Progress has been made.
Berlin is home to several of the tech worlds mythical unicorns, such as SoundCloud, Delivery Hero and a handful of Rocket Internet companies. However, while both Rocket Internet and Zalando went public on the Frankfurt Stock Exchange last year quite successfully, I might add there is little fanfare for German startups in the international community. So what comes next?
The next big thing is an Initial Public Offering (IPO) in the United States (U.S.). We may not have long to wait. Earlier this week, Delivery Hero announced a $110 Million investment from pre-IPO investors valuing the company at $3.1 billion USD. While Rocket Internet owns more than 30 percentof Delivery Hero, and Rocket Internet portfolio companies have thus far gone public on the Frankfurt Stock Exchange, comparable companies are receiving higher valuations in the U.S.
Markus Bauman, a lawyer with King & Spalding,has taken a number of German companies public in both Germany and the U.S. As he explains, The current macroeconomic conditions, together with recent legislation like the JOBS Act, is making it easier for emerging-growth companies to go public in the United States.
In the past, German companies often listed their shares in the U.S. From 1994-2001, around 25 of the largest German companies went public in the U.S. (Daimler, Deutsche Telekom, Siemens, Deutsche Bank, etc.), which was the gold standard of the time. In 2002, the trend came to a halt with the introduction of The SarbanesOxley Act, which tightened regulations and created a compliance nightmare. For anyone who has filed taxes in Germany, you know that when Germans complain about compliance, it is time to amend the Act.
Cost was also an issue. Spiegel reported that, German firms cross-listed in the United States spent between 10 and 15 million annually on SEC compliance, a survey conducted by Stadtmann and his colleagues found. Most companies would not disclose the exact amount of money they spent on SEC compliance, but a Deutsche Telekom spokesperson told SPIEGEL ONLINE costs were in the low double-digits of millions of euros and another at Daimler said they did not exceed 10 million.
Most German companies decided to bail on the U.S. stock exchange and move to Frankfurt. The German companies that remain include Deutsche Bank, Affimed, Aixtron, Elster Group, Fresenius, Orion Engineered Carbons, Rofin-Sinar, SAP and Voxeljet. But with the emergence of high-growth technology and biotech companies in Germany reaching valuations in the several hundred million dollar/euro range, combined with recent legislation that has made governance and disclosure obligations less stringent for foreign private issuers in the U.S., it is time for German companies to reconsider.
Bauman notes, The JOBS Act gives emerging growth companies a number of important accommodations, from exemptions to internal controls audits under Sarbanes Oxley, to testing the waters to confidential SEC review and scaled financial disclosure. Those accommodations are in addition to the exemptions and accommodations given to foreign private issuers as compared to the requirements that are imposed upon U.S. domestic issuers by the SEC.
Lets start with the basics: Money. In January, I wrote a post raving about how Berlin startups raised 1.1 billion USD in 2014. While that was amazing growth, during the same year U.S. startups raised $47.3 billion. When it comes to capital markets, we see the same discrepancy in volume.
Read more:
The Berlin Startup Ecosystem Needs An IPO In The U.S ...
- Green with Envy | How to Spot an Eco-Snob | Part III - November 8th, 2009 [November 8th, 2009]
- EcoLogo - November 8th, 2009 [November 8th, 2009]
- 5 Ways to Green Your Exercise Routine - November 8th, 2009 [November 8th, 2009]
- Seed Bombs - November 8th, 2009 [November 8th, 2009]
- Guerrilla gardening - November 8th, 2009 [November 8th, 2009]
- Green Your Morning Routine - November 8th, 2009 [November 8th, 2009]
- Environmental Benefits of Telecommuting - November 8th, 2009 [November 8th, 2009]
- Safeway Sponsors Portland Community Cleanup - November 8th, 2009 [November 8th, 2009]
- Electric Vehicle Race - November 8th, 2009 [November 8th, 2009]
- Portland Bridge Pedal 2009 - November 8th, 2009 [November 8th, 2009]
- E-waste in Oregon - November 8th, 2009 [November 8th, 2009]
- Bike Sharing in Portland - November 8th, 2009 [November 8th, 2009]
- Bucks for the Bay Challenge - November 8th, 2009 [November 8th, 2009]
- Drive to Make a Difference with MyMPG - November 8th, 2009 [November 8th, 2009]
- Bathroom Sprayers - Green your Toilet Routine - November 8th, 2009 [November 8th, 2009]
- Ubuntu OS can Save Energy - November 8th, 2009 [November 8th, 2009]
- Green Metropolis, David Owen - November 8th, 2009 [November 8th, 2009]
- Sustainable Pens: GLO Pens - November 8th, 2009 [November 8th, 2009]
- International Day of Climate Action - November 8th, 2009 [November 8th, 2009]
- Donate to Oregon Toxics Alliance - November 8th, 2009 [November 8th, 2009]
- Biomass Energy Generation Myths - November 8th, 2009 [November 8th, 2009]
- Crude The Real Price of Oil | Playing in Portland - November 8th, 2009 [November 8th, 2009]
- Pictures From 350 Climate Day in Portland - November 8th, 2009 [November 8th, 2009]
- Arcimoto Electric Vehicles in Oregon - November 8th, 2009 [November 8th, 2009]
- Urban Rooftop Wind Turbines - November 8th, 2009 [November 8th, 2009]
- Chromium 6 Emissions from ESCO in Portland - December 13th, 2009 [December 13th, 2009]
- Food Inc. Review - December 19th, 2009 [December 19th, 2009]
- Making Maps with Google Earth and Google Maps by Shane Bradt of the University of New Hampshire Cooperative Extension - March 23rd, 2010 [March 23rd, 2010]
- Demonstration of Miradi 3.1 by Nick Salafsky of Foundations of Success - March 23rd, 2010 [March 23rd, 2010]
- Advanced Mashups – KML and the Mapping API by Cary Chadwick of the University of Connecticut Center for Land Use Education and Research - March 23rd, 2010 [March 23rd, 2010]
- Demonstration of InVEST by Heather Tallis of the Natural Capital Project - March 23rd, 2010 [March 23rd, 2010]
- GIS Maps Online by Emily Wilson of the University of Connecticut Center for Land Use Education and Research - March 23rd, 2010 [March 23rd, 2010]
- From ArcGIS to Web Maps: Simple Techniques for Publishing GIS Maps Online by Emily Wilson of the University of Connecticut Center for Land Use Education and Research - March 25th, 2010 [March 25th, 2010]
- Demonstration of Marine InVEST by Anne Guerry of the Natural Capital Project - March 31st, 2010 [March 31st, 2010]
- Eliminate and Decrease Styrofoam - March 31st, 2010 [March 31st, 2010]
- Portland Plans to Spend $600 million on Master Bike Plan - April 2nd, 2010 [April 2nd, 2010]
- (Webinar in Spanish) Demostración sobre Vista 2.5 de NatureServe en línea (Webinar) por Ian Varley, Carmen Josse, y Alexandra Sanchez de Lozada de NatureServe. - April 6th, 2010 [April 6th, 2010]
- Using and Adding Your Content to Google Ocean by Charlotte Vick, Google Content Manager of Mission Blue - April 13th, 2010 [April 13th, 2010]
- End Paper Receipts - May 1st, 2010 [May 1st, 2010]
- Demonstration of CanVis by Chris Haynes of NOAA Coastal Services Center - May 6th, 2010 [May 6th, 2010]
- Demonstration of HD.gov Web Portal by Jeff Adkins from NOAA Coastal Services Center - May 13th, 2010 [May 13th, 2010]
- Demonstration of Ecosystem Assessment and Reporting Tool by Steve Schill of The Nature Conservancy - May 13th, 2010 [May 13th, 2010]
- Demonstration of Version 2.0 of the Multipurpose Marine Cadastre by Adam Bode and Brian Smith of NOAA Coastal Services Center - May 17th, 2010 [May 17th, 2010]
- CRUDE Filmmakers Subpoenaed by Chevron - May 22nd, 2010 [May 22nd, 2010]
- Demonstration of the Digital Coast Coastal Inundation Toolkit by Steph Beard, Jodie Sprayberry and Billy Brooks of NOAA Coastal Services Center - May 25th, 2010 [May 25th, 2010]
- Presentation on the Creating Resilient Communities EBM Tool Demonstration Project by Jocelyn Hittle of PlaceMatters - June 10th, 2010 [June 10th, 2010]
- Presentation on Economic Data Needed for EBM by Linwood Pendleton of Duke University - October 11th, 2010 [October 11th, 2010]
- Recycling Water - October 16th, 2010 [October 16th, 2010]
- ODOT Partners with Oregon Toxics Alliance to Reduce Pesticides - October 17th, 2010 [October 17th, 2010]
- Goats Hired to Mow Portland Lot - October 17th, 2010 [October 17th, 2010]
- A World of Health: Connecting People, Place, and Planet - October 17th, 2010 [October 17th, 2010]
- Alternative Recycling Options - October 17th, 2010 [October 17th, 2010]
- No More Bullying the Bull Trout - October 17th, 2010 [October 17th, 2010]
- 1000+ EV Charging Stations Slated for Oregon I-5 Corridor - October 17th, 2010 [October 17th, 2010]
- The Vertical Farm Concept - October 17th, 2010 [October 17th, 2010]
- Blog Action Day 2010 | Water - October 17th, 2010 [October 17th, 2010]
- Eco Districts - October 24th, 2010 [October 24th, 2010]
- Will The Nissan Leaf Thrive? - October 24th, 2010 [October 24th, 2010]
- A Green Railroad - October 24th, 2010 [October 24th, 2010]
- Biomass is not Oregon's clean-energy future as currently promoted - October 24th, 2010 [October 24th, 2010]
- Electrified Parking Spaces - October 24th, 2010 [October 24th, 2010]
- Tree Planting - October 24th, 2010 [October 24th, 2010]
- Three Tips to Reduce Your Carbon Footprint and Live Longer. - October 24th, 2010 [October 24th, 2010]
- Biomass is not Oregon’s clean-energy future as currently promoted - October 31st, 2010 [October 31st, 2010]
- Rail~Volution - October 31st, 2010 [October 31st, 2010]
- Green Streets Initiative - October 31st, 2010 [October 31st, 2010]
- Mayor Kitty Piercy and Envision Eugene - November 7th, 2010 [November 7th, 2010]
- The Willamette River Transit Bridge - November 13th, 2010 [November 13th, 2010]
- Collaborative Learning and Land Use Tools to Support Community Based Ecosystem Management by Chris Feurt of the Wells National Estuarine Research Reserve - November 14th, 2010 [November 14th, 2010]
- Portland Federal Building Begins Green Makeover - November 14th, 2010 [November 14th, 2010]
- Vestas’ New HQ in Portland Shoots for LEED Platinum - November 14th, 2010 [November 14th, 2010]
- College Degrees to Get You in the Environmental Field - November 14th, 2010 [November 14th, 2010]
- Demonstration of openNSPECT, an Open Source Version of the Nonpoint-Source Pollution and Erosion Comparison Tool by Dave Eslinger of NOAA Coastal Services Center - February 14th, 2011 [February 14th, 2011]
- Demonstration of EMDS by Keith Reynolds of the US Forest Service - February 14th, 2011 [February 14th, 2011]
- Demonstration of Habitat Priority Planner by Chrissa Waite and Danielle Bamford of NOAA Coastal Services Center - February 14th, 2011 [February 14th, 2011]
- Presentation on the Coastal Adaptation to Sea Level Rise Tool (COAST) by Sam Merrill of the New England Environmental Finance Center - February 14th, 2011 [February 14th, 2011]
- Presentation on the Coastal and Marine Ecological Classification Standard by Kathy Goodin of NatureServe - February 14th, 2011 [February 14th, 2011]
- Demonstration of Coral Reef Scenario Evaluation Tool (CORSET) by Jessica Melbourne-Thomas of the University of Tasmania - February 14th, 2011 [February 14th, 2011]
- Demonstration of Multi-scale Integrated Models of Ecosystem Services (MIMES) by Roel Boumans and David McNally of AFORDable Futures LLC - February 14th, 2011 [February 14th, 2011]
- Creating Life in the Desert - February 14th, 2011 [February 14th, 2011]