EXECUTIVE SUMMARY

Goal

The main Objective was to optimize the investment strategy of B&C Innovation Investments through a trend, best practice and gap analysis as well as a due diligence to recommend a start-up with the potential to become a unicorn. The focus was on start-ups in Austria, Germany, or Switzerland with a bias towards Austria. The sector is IndustrialTech and software, series a as well as existing revenues are strongly preferred, but we could challenge it if we find out in our research that another strategy might be beneficial. 

Methodology

1. Trend analysis: Six megatrends and 21 sub-trends were identified through desk research, expert interviews, and scored based on impact, predictability, and innovation potential. Using a weighted formula sub-trends like AI-driven robotics and predictive maintenance were prioritized.

2. Gap analysis: Trends present in BCII’s current portfolio were compared to the trends from the trend analysis, revealing gaps in areas such as advanced manufacturing and cybersecurity.

3. Best practice analysis: Several interviews with venture capitalists and private equity professionals revealed information about sourcing strategies, emphasizing VC partnerships, university incubators, and localized scouting in the DACH region. In addition, regarding valuation, all of them emphasized the importance of a strong background in the teams and especially the co-founders.

4. Company Exploration: A longlist of 38 start-ups was generated based ion all the found companies and filtered through criteria like trend alignment and team, which narrowed it down to a shortlist of five. After a consultation with B&C, based on our findings, their top five were selected and went through a light due diligence.

5. Light Due Diligence: Public data assessed financials, business models, and competitive positioning for the five start-ups. All of them underwent a SWOT analysis and market validation.

Results

1. The trends: The six megatrends — artificial intelligence, connectivity & IIoT, sustainability, advanced manufacturing, cybersecurity, and immersive technology — were selected, with sub-trends like generative AI and edge computing highlighted for their potential.

2. Strategic Gaps: BCII’s portfolio lacks exposure to fast-growing areas like smart factories and circular economy solutions. Therefore, it was one of the selection criteria for the light due diligence.

3. Target Companies: An AI start-up is our top recommendation due to its AI-driven manufacturing analytics platform, which enable manufacturers to achieve operational excellence by providing real-time insights, detecting anomalies, and proactively identifying root causes in production processes. The company demonstrated >400% revenue growth (2022–2023), secured millions in funding, and partnered with industry leaders. It addresses critical pain points in high-value sectors like semiconductors and pharmaceuticals.
An alternative is a start-up for advanced data conversion solutions, which was noted for their potential but they are too early in their life cycle.

Cooperation Partner

• B&C Innovation Investments
  Palais Ephrussi
  Universitätsring 14
  1010 Wien
  T: +43 (0) 1 531 01 - 0
  E: office@bcholding.at

Contact Person

• Michael Leopolder - m.leopolder@bcholding.at


 

Student Team

• Marlene Brauneis
  Joshua Haller
  Solomiia Kabanets
  David Gahleitner
  Simon Schmidthals

Project Manager

• Caroline Fabian