Corporate Venture Capital: Why Deutsche Leasing AG Invests in Start-ups with vent.io

Deutsche Leasing AG is often referred to as the backbone of the German Mittelstand. However, with the spin-off of vent.io, it is now also making its mark in the start-up scene. We interviewed Sven Siering, Managing Director of vent.io, and Peter Lauerbach, Head of Investment, to learn how this initiative came about and why engaging in Corporate Venture Capital creates added value for all parties involved.

Sven Siering and Peter Lauerbach from vent.io

Sven and Peter, thank you for taking the time to do an interview with Ambivation. How would you describe what you do at vent.io in an elevator pitch?

Sven: vent.io is the digital subsidiary and CVC arm of Deutsche Leasing AG. Our focus is on start-ups that could be relevant to Deutsche Leasing AG’s customers. On the one hand, we connect them with potential cooperation partners, and on the other, we invest directly. It’s a win-win-win situation: start-ups gain market access, Deutsche Leasing AG’s customers gain access to innovation, and Deutsche Leasing AG benefits from enhanced reputation by providing added value to its customers.

That sounds fantastic! How did you come to this?

Peter: I have a classic finance background and, through various professional experiences, have been exposed to all the relevant perspectives—investment, start-up, and corporate.

Sven: I have many years of banking experience and was Head of the Digital Innovation Unit at Deutsche Leasing AG until vent.io was spun off.

How did vent.io’s spin-off come about?

Sven: Established companies like Deutsche Leasing AG often have structures shaped by regulations and complex processes. With vent.io, we wanted to operate with a certain level of independence and explore new approaches. We also wanted to attract employees excited about a young, digital brand.

To what extent can you invest in start-ups, and how much decision-making freedom do you have?

Peter: We have a total investment budget of €10 million. Our current investment phase runs until 2026, followed by a five-year divestment phase. Per start-up, we can initially invest up to €750,000 and a maximum of €1.5 million.

Sven: Investment decisions are made by an investment committee, which includes the board of Deutsche Leasing AG and vent.io’s management team.

What do start-ups need to bring to the table to be interesting for you as an investment or potential cooperation partner for Deutsche Leasing AG customers?

Peter: The key requirement is a product-market fit. Start-ups must provide a functional solution to a specific problem and should already have a solid customer base paying for their product or service. We’re particularly interested in start-ups with strong revenue growth and early recurring revenues (e.g., SaaS models). Relevant sectors include mobility, real estate, logistics, transportation, trade, manufacturing, rental, and data processing.

Deutsche Leasing AG has long-standing relationships with many of its customers, who value reliability highly. When recommending start-ups as cooperation partners, we must be confident they can deliver on their promises. We typically invest during late seed or early Series A phases, focusing primarily on B2B solutions.

How does the process work? Do Deutsche Leasing AG customers come to you with innovation projects, or do you first identify start-ups?

Sven: There are two approaches. First, our innovation team works with Deutsche Leasing AG’s sales department to analyze customer “pain points,” such as ESG reporting or operational challenges. This initiates an iterative process: the investment team conducts thorough start-up scouting, resulting in a shortlist of two or three relevant start-ups. These are then presented to Deutsche Leasing AG customers by the innovation and sales teams. After a pilot project, synergy potential becomes clearer, and following due diligence, the start-up is presented to the investment committee for a final decision.

Peter: Alternatively, we discover start-ups through our investor network or at conferences that offer relevant solutions for Deutsche Leasing AG customers.

What can start-ups expect from you?

Peter: Beyond market access, we provide intensive support on scaling their business model. Through our network, we can introduce them to other investors and start-ups. We also assist with technical aspects and financing issues.

What’s the most critical aspect of your work for Deutsche Leasing AG customers?

Sven: With vent.io, we provide Deutsche Leasing AG customers with access to qualified innovation. We act as a filter, saving them time and money. Otherwise, companies would need to hire someone for start-up scouting. We say: “You have a challenge? We’re the matchmakers.”

That sounds quite similar to what we do at Ambivation! What excites you most about your work?

Peter: Working with very smart people in a dynamic environment. Staying up-to-date requires continuous learning and engagement with new technological developments.

Sven: Ultimately, our work is about people, taking the time to create value. Essentially, what we do is change management. We support transformation processes and help the Mittelstand tackle current challenges.

Which portfolio start-ups are you particularly proud of right now?

Peter: Rabot Energy is an excellent investment case for us. Since our investment, the start-up has achieved very positive economic development.

Sven: Additionally, it’s an excellent innovation case for us. For Deutsche Leasing AG customers, dynamic electricity tariffs are particularly relevant in fleet management.

Another standout is Unchained Robotics, one of our start-ups addressing current labor shortages. It offers plug-and-play automation solutions for businesses. Deutsche Leasing AG supports the start-up with financing to make robotics solutions accessible to a broader customer base. This accelerates the start-up’s growth, benefiting us in multiple ways.

That sounds fascinating. We look forward to spotlighting Unchained Robotics in a future feature! Finally, for those interested in investments, what are your key takeaways for 2024, and can you share any insights into current developments?

Peter: Investment activity has been somewhat cautious this year, partly due to macroeconomic conditions. There’s also been a shift toward prioritizing real KPIs, such as revenue figures, in recent years. However, there’s still a significant amount of “dry powder” in the market that needs to be invested soon. As a CVC, we remain optimistic about the future. Current market trends give us better access to exciting start-ups. As a long-term investor and partner, we stand by our start-ups, providing stability, especially in uncertain times.

Contact

Website: vent.io

LinkedIn: Sven Siering, Peter Lauerbach