Ginkgo Equity

The buyout VC

GINKGO EQUITY

Is it one living thing
That has become divided within itself?
Are these two who have chosen each other,
So that we know them as one?
— Johann Wolfgang von Goethe "Ginkgo Biloba"

The Ginkgo Biloba is the oldest surviving tree dating back more than 200 million years. Like the ginkgo we aim to build businesses that last for generations to come . Thereby, we closely work with our investments jointly with our founders - joining two to one like the ginkgo leaf.

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Traditionally, Venture Capital focuses on maximizing upside potential – achieving high returns on a small number of investments to offset the losses on the majority of investments. VCs therefore need to focus their resources on very few portfolio firms and reduce their attention on other portfolio ventures.

Divergence from investor expectations

In fact however, these startups are just not on the unicorn trajectory planned for by investors and founders. Often they have prematurely scaled in order to satisfy investor expectations.

At Ginkgo Equity we aim to identify these ventures in investor portfolios that have the potential to be turned into profitable mid-sized companies.

Adjustments to profitability

We support our ventures with hands-on operating support. We work with experienced management talent to support the path to profitability. These are typically experienced ex-founders and ex-consultants with a proven track record. Additionally, we work with highly qualified team of topic experts and specialists to implement tailored solutions in the core areas of sales, operations, and finance.

Target criteria

We are industry-agnostic (no life science or bio-tech) but mostly focus on B2B companies with a high-tech product and operations in Europe (select niche B2C companies are relevant, too). Ventures of interest typically achieve EUR 2-20m in revenue and are still cash flow negative. We focus on firms with a clear turnaround potential within 24-48 months.

 

Established in 2019 we plan to make 2-3 acquisitions per year.

 

Our difference

Comparison to PE and VC