In a recent interview at the 0100 Conference DACH in Vienna, we had the privilege of speaking with Maximilian Derpa, Managing Partner and Chief Investment Officer at Tenity. Mr. Derpa shed light on the inner workings of Tenity and provided valuable insights into the benefits of partnering with their venture capital firm. Let's delve into the details he shared:
Deal Flow and Success Stories
When asked about the deal flow that Tenity offers its investors, Max stated, "We have a large deal-flow, mostly sourcing fintech and insurtech companies across Europe and APAC. We do micro investment in up to 300 companies to secure access for later stage larger investments."
This approach ensures that Tenity's investors have a diverse portfolio of potential investments, including early-stage companies that could become the next big success stories in the fintech and insurtech sectors. It's a strategy designed to maximize opportunities for growth.
Benefits for LPs
When it comes to the advantages for Limited Partners (LPs), Maximilian points out three key benefits: "Warrants, Lead/Follow, and Co-Investments."
Regarding warrants, he mentions, "The Tenity fund includes a warrant right to invest 1 million USD in subsequent equity rounds, in addition to the pro-rata rights. This warrant can be extended to LPs." This unique feature enhances LPs' potential returns.
The Lead/Follow approach is equally appealing. Maximilian elaborates, "We introduce startups seeking funds to our LPs by facilitating connections with these companies. LPs can choose to take a lead role or follow the lead of another external investor." This hands-on involvement empowers LPs to actively participate in the investment process, tailoring their engagement to their preferences.
Lastly, Maximilian explains co-investments: "The Tenity fund has the right, though not the capital, to participate pro-rata in subsequent rounds. LPs can fill this gap by investing in a Co-Investment vehicle." Tenity's co-investment opportunities allow LPs to further diversify their portfolios and leverage Tenity's expertise in identifying promising startups.
When asked about the requirements for LPs to participate in co-investment opportunities, Maximilian clarifies, "LPs have a first right of refusal based on the size of their commitment." This approach ensures fairness and transparency in the co-investment process.
Addressing potential co-investment challenges such as conflicts of interest and transparency, Maximilian explains, "In case of conflicts, we have an LP Advisory Committee in place to resolve any issues. Additionally, our team is incentivized through carry on fund performance." Tenity's commitment to transparency and conflict resolution ensures that LPs can invest with confidence.
Tenity's Unique Selling Proposition for LPs
Finally, Maximilian outlines Tenity's unique selling proposition (USP) in attracting LPs to invest in their fund. He emphasizes three key elements: "Focus, Value Add, and Diversification."
"We exclusively focus on fintech and insurtech," he notes. This specialization allows Tenity to excel in a niche with immense growth potential, increasing the likelihood of success for their investments.
Maximilian continues, "Tenity is an ecosystem dedicated to fostering innovation in fintech and insurtech. Our network of mentors, corporates, investors, and startups creates more value than any single VC could provide." This ecosystem approach distinguishes Tenity by offering startups access to a wealth of resources and expertise, setting them up for long-term growth.
Lastly, he highlights their investment strategy: "We follow a highly selective funnel, securing up to 300 opportunities through micro initial investments, and then meticulously selecting larger follow-on investments to reach target shareholdings while nurturing the winners for the long term." This approach ensures that LPs are exposed to the most promising startups, optimizing their potential returns.
Maximilian proudly lists some notable LPs already partnering with Tenity, “We won UBS AG, SIX Group AG (Swiss Stock Exchange), Julius Bär and a subsidiary of Generali as LPs.” he says.
In conclusion, Tenity, under the guidance of Maximilian Derpa, offers LPs a strategic and diversified approach to investing in the dynamic fintech and insurtech sectors. Click here to watch our video interview with Maximilian to learn more details about Tenity.
We had the chance to interview Maximilian at our LP/GP conference in Vienna. If you're keen on participating in similar exclusive gatherings, feel free to browse our upcoming events.