- € 1 million for innovative travel guide and travel service concept
The IBG funds (IBG), which are managed by bmp Beteiligungsmanagement AG (bmp), will invest € 1 million in 'Lost in the City GmbH'. The Magdeburg-based company offers travellers a number of recommendations for trendy metropolises, focusing on a combination of traditional print and a mobile app with in-app sales.
From Colette in Paris to the Ace Hotel in New York, the 'Lost in …' city guides in English are successfully sold worldwide. In addition to editorial content, the mobile app of the same name offers its users various possibilities to personalise recommendations in line with individual user interests.
In future, this offer will be supplemented with useful services for travellers, such as taxi and transport services, ticket bookings and restaurant reservations.
Philipp Majcher, founder and Managing Director of the company, reports: “The current market is divided into traditional guide books with a focus on editorial content on the one hand and mobile travel recommendation platforms on the other. The latter does offer a stable infrastructure but it is weak in terms of content due to the lack of editorial work. With 'Lost in the City' we are combining a modern app technology with high-quality editorial content for the first time.”
The guarantors of these quality standards are local journalists, photographers and opinion leaders from different areas such as culture, fashion, design and catering, who 'Lost in the City' is closely collaborating with.
“We know our target group very well and are aware of what it expects from a city trip. Based on this, we have formed clusters and in line with them are selecting our local opinion leaders for this purpose. This allows us to achieve a high level of identification with our experts’ tips. We will also achieve this level of identification with our app,” added Joseph Djenandji, co-founder and Managing Director of the company.
Nine printed editions, which have already been released for the metropolises of Berlin, Milan, London, New York City, Barcelona, Amsterdam, Paris, Vienna and Frankfurt with over 35,000 copies sold to date in 26 countries, are evidence that this approach is working. Ten more guides will follow this year.
Ywes Israel, the responsible investment manager at bmp Beteiligungsmanagement AG, explains: “Travellers want high-quality information – and they want it to be rapidly available. We also see a gap in the market that 'Lost in the City' can close. We are happy to provide these founders with financial support via the IBG funds to allow them to rapidly develop the app and expand the sales and marketing team.”
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, the VC portfolio of bmp Holding and the Frühphasenfonds Brandenburg fund, which completed its investment phase following 24 investments at the end of 2014.
Further information: (www.bmp.com)
bmp Beteiligungsmanagement AG
- Public relations -
Tel.: +49-30-2030 5567
Lost in the City GmbH