The IBG funds (IBG), which are managed by bmp Beteiligungsmanagement AG (bmp), will acquire a 20% stake in ‘2tainment GmbH’ as part of a first financing round. The company licenses and develops gaming and virtual reality software in order to optimise and market them.
2tainment, which was founded in 2014 in Eschborn near Frankfurt and has now moved its registered office to Magdeburg, meanwhile markets 11 games and has successfully published selected titles on the market. The fresh funds will be used in particular to build up the in-house development capabilities in the field of virtual reality.
Wolfgang Duhr, founder and Managing Director at 2tainmeint GmbH, says, ‘Our approach in the development of virtual reality components will be to broaden the nature of the games. The gaming experience will be intensified without virtual reality becoming an end in itself. As a first step, it will still be possible to play the games in full even without virtual reality features.’
Stefan Weyl, co-founder and Managing Director, explains, ‘Virtual reality is in demand in areas besides the games and entertainment industry as well and it is already being used in staff training and for product design. A wide range of further possible applications are conceivable, especially for marketing purposes. For example, we are currently in discussions with a football club from the German Bundesliga concerning the development of virtual tours through the stadium.’
To expedite the development, the company is planning to enlarge its team in the medium term to 20 employees. The new headquarters at the Magdeburg Science Port are playing a decisive role in attracting qualified employees and industry partners: alongside its degrees in Computer Science, the Otto von Guericke University also offers a specialisation in Computational Visualistics and has long recognised the importance in the field of virtual reality. The renowned Fraunhofer Institute nearby has its own Virtual Engineering business unit and likewise offers synergies in the industrial sector.
‘It will still take some time until the hardware needed to use the virtual reality content is sufficiently widespread,’ explains Ywes Israel, the investment manager responsible at bmp Beteiligungsmanagement AG. ‘Thus 2tainment’s USP lies in a two-tier strategy. For although the sales of existing games are already generating income today, the company is opening up further options for itself for the future via the entry into different fields of application. We are delighted to be able to accompany this development with the IBG funds.’
About the IBG funds:
The IBG funds finance new companies (seed and start-up) with long-term and above-average growth potential that are headquartered in or have a branch office in Saxony-Anhalt. Particular attention is given to business models in the areas of life sciences/health care, surface technologies (functional coatings/new materials), mechanical engineering and process technologies, chemistry, microelectronics, microsystem technology, technical software, Internet and mobile apps. The IBG funds have already invested in over 100 companies since 1996. At the moment, there are approximately 50 companies in the portfolio. The IBG funds have been managed by bmp Beteiligungsmanagement AG since July 2015.
More information: (www.ibg-vc.de)
With a background of experience of more than 250 investments in almost all technology segments, the majority of which were early phase, bmp is one of the most experienced venture capital investors in Germany. In addition to direct investments, bmp's activities also include managing risk capital funds for KfW Bankengruppe and DEG - Deutsche Investitions- und Entwicklungsgesellschaft.
bmp currently manages the IBG funds in Saxony-Anhalt and the Frühphasenfonds Brandenburg fund, which completed its investment phase following 24 investments at the end of 2014.
Further information: (www.bmp.com)
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