How CDTM Venture helps graduates create a successful business
CDTM Venture has raised €8.2 million to support startups. Based in Munich, the fund is part of the Centre for Digital Technology and Management (CDTM). Its activities aim to support early-stage startups that are part of the organisation. Investors in the fund include 316 CDTM alumni.
The fund plans to invest in 60 startups over four years. One of the key selection criteria is that at least one of the founders must be an alumnus of the centre. This approach incentivises students and gives them the opportunity to further develop their ideas. In addition, CDTM creates a network of alumni ready to support each other on the road to success.
Overview of CDTM activities
CDTM was founded in 1998 as a postgraduate institution. It offers the interdisciplinary course ‘Technology Management’, which is part of the Elite Network of Bavaria. The aim of the centre is to find talented students and create conditions for their professional development and the launch of their own business projects. The CDTM operates as follows:
– it selects 25 students every six months;
– selection is made from 450 applications;
– at the end of the course, the most promising startups receive capital for project development;
– startups can also count on technical support and assistance in the form of mentoring from experts in the sector.
Since its creation, the centre has facilitated the creation of more than 280 startups and around 1,100 graduates have completed the programme. Ten projects supported by the CDTM have achieved unicorn status. These include Trade Republic, Razor, Monzo, Cellares, Forto and others.
Specifics of the fund
The Foundation’s activities are aimed at finding, training and supporting innovators. It helps to create a wide range of opportunities for talented entrepreneurs. The main advantage of the fund is the elimination of bureaucracy and a flexible system for obtaining funding. CDTM can also attract third-party venture capital funds, corporations and business angels as co-investors.
Franz Waltenberger, who is part of the Centre’s team, manages the fund. The investment committee is made up of CDTM alumni. Both alumni and students of the Centre can invest in promising projects. The fund does not set any entry limits: it can be large sums or small contributions. The CDTM receives a significant part of the income in the form of donations. This supports training opportunities for talented young people of the future.
CDTM is the first foundation of its kind in Germany. Alumni investor clubs are quite popular in the US but are not well represented outside the US. Nevertheless, CDTM is doing well. In EMEA, only five venture capital funds have invested in more unicorns than CDTM.
