Berlin venture fund founders step up with second German SPAC

Rocket Internet SE

14/04/2021 10:35

By Douglas Busvine
    BERLIN, April 14 (Reuters) - The founders of a Berlin
early-stage venture fund are taking a step up by floating a
blank-cheque acquisition company in Frankfurt that will seek to
raise more money than they currently have under management.
    But the trio behind 468 Capital says, they have the insights
and connections to complete only the second launch of such a
listed shell company in Germany that would seek to buy a tech
company worth up to 4 billion euros ($4.8 billion).
    "There are four 10 billion-plus public companies in our
postcode," 468 Capital co-founder Ludwig Ensthaler told Reuters
in an interview. "We know them all."
    Ensthaler was referring to Delivery Hero  DHER.DE , now a
constituent of Germany's blue-chip stock index, fashion e-tailer
Zalando  ZALG.DE , mealbox delivery firm Hellofresh  HFGG.DE 
and used-car platform AUTO1  AG1G.DE  - all of which are listed
in Frankfurt.
    Germany's leading listed tech companies have common roots in
the Berlin ecosystem that grew up around startup incubator
Rocket Internet - that's where two of 468 Capital's founding
partners come from. 
    Ensthaler previously worked at Global Founders Capital, a
fund backed by Delivery Hero CEO Niklas Oestberg and
Hellofresh's Dominik Richter, while partner Alexander Kudlich
served on the board of Rocket Internet.
    Together with Florian Leibert, who is U.S.-based and has a
track record as a software entrepreneur, the partners launched
468 Capital in 2020. The fund manages $200 million and has made
27 early-stage investments, according to Pitchbook.
    The special-purpose acquisition company, or SPAC, that they
are sponsoring - 468 SPAC 1 SE - announced its intention to
float on Tuesday evening and is seeking to raise 300 million
euros.  urn:newsml:reuters.com:*:nASN0012HL
    Such shell companies have two years after floating to
acquire a target and, Kudlich said, the 468 SPAC would probably
aim to raise a similar amount of money via a private placement
before completing a deal.
    With up to 600 million euros to work with, an acquisition
worth between 1 billion and 4 billion euros would be in a "sweet
spot" that would ensure an adequate free float for the merged
company of at least 10%, added Kudlich.
    The 468 SPAC is the second after Lakestar SPAC I SE
 LRS1.DE , which raised 275 million euros in Frankfurt when it
opened in Frankfurt in February with the backing of German
venture capitalist Klaus Hommels.  urn:newsml:reuters.com:*:nL8N2KN52O
    Joh. Berenberg, Gossler & Co KG is acting as sole global
coordinator for the transaction.
    
($1 = 0.8358 euros)

 (Reporting by Douglas Busvine;
editing by Madeline Chambers, Larry King)
 ((douglas.busvine@tr.com; +49 30 220 133 562;))