{"id":2743,"date":"2025-11-13T20:20:42","date_gmt":"2025-11-13T19:20:42","guid":{"rendered":"https:\/\/steinbeis-finance.de\/en\/?p=2743"},"modified":"2025-11-13T20:22:38","modified_gmt":"2025-11-13T19:22:38","slug":"green-elephant-biotech-on-the-path-to-a-successfully-structured-financing-round","status":"publish","type":"post","link":"https:\/\/steinbeis-finance.de\/en\/insights\/green-elephant-biotech-on-the-path-to-a-successfully-structured-financing-round-2743","title":{"rendered":"Green Elephant Biotech on the path to a successfully structured financing round"},"content":{"rendered":"\n
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<\/p>\n\n\n\n For this reason, we decided to go down this route. Immediately after founding the company, we raised initial funds from business angels and then entered discussions with various VCs. Ultimately, we decided to pursue a larger, more structured process. <\/p>\n\n\n\n Magnus immediately came to mind, as I had already worked with him in my first startup, where he was involved as a business angel. We were convinced that it made sense to take a comprehensive market approach for the next financing round. The result was that the best solution for us was to bring in a strategic partner, and we have been very happy with this decision so far. <\/p>\n\n\n\n With the entry of B\u00fcrkert GmbH & Co. KG, Green\u2026<\/p>\n","protected":false},"author":11,"featured_media":2745,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2743","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-misc"],"yoast_head":"\n
Catharina H\u00fcbner<\/strong>
You are breaking new ground with Green Elephant and now have B\u00fcrkert at your side. Why did you realize during the financing round that you needed a partner, and how did you come across us?<\/p>\n\n\n\n
Felix Wollenhaupt<\/strong>
The question of why we need a partner is relatively easy to answer based on our business model. In the biotech and biopharma sector, it is not uncommon to rely on external financing for product development. The road to market launch is very long, as products can only be successfully placed once all regulatory requirements have been met.<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
You became aware of us through Magnus, whom you already knew. Were there any other factors that convinced you that we were the right team of advisors for you, with Christopher, Christoph, and Magnus at your side?\u00a0<\/p>\n\n\n\n
Joel Eichmann<\/strong>
I found Christopher’s role very strong, as he himself has a technical background in biopharma, chemistry, life sciences, and medical technology, and asked the right questions right from the first meeting.\u00a0
Our technology operates in a niche where it is crucial that the people we work with – whether investors, technology partners, or consultants – understand both the industry and the technology.\u00a0
That’s what convinced me about you, because your team understood right away what we do, why it’s exciting, and why it’s a case worth accompanying and supporting.\u00a0<\/p>\n\n\n\n
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Catharina H\u00fcbner<\/strong>
Christopher, what particularly appealed to you about this set-up and founding team – both professionally and personally?<\/p>\n\n\n\n
Dr. Christopher Klein<\/strong>
What particularly convinced me is how well Joel and Felix complement each other: Felix as a competent finance leader and Joel with his invention and technical overview. But both are also able to think beyond their own areas of expertise and represent each other. I am impressed by their energy and authenticity. Felix always has a smile on his face, even when things get difficult. Joel, with his stoic and thoughtful manner, which helps him pursue his goals. Their authentic nature, their uncomplicated manner, sophisticated and at the same time very human and approachable: in my view, both are true entrepreneurs who are simply fun to work with.\u00a0<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
What appealed to you professionally?<\/p>\n\n\n\n
Dr. Christopher Klein<\/strong>
Professionally, I was fascinated by the commercialization of a technology for the cultivation of adherent cells. From my studies, doctorate, and industry experience, I am familiar with suspension cultures – large fermenters in which many cells grow in a nutrient medium and are kept in suspension by means of stirrers. And for the niche of adherent cells, simple dishes with a small specific surface area have been used for 100 years for the cells to grow on. Green Elephant’s technological leap is exactly what industry and medicine need – especially in view of the increasing demand for cell therapies and vaccines.<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
Was there a phase in the process that was particularly complex, where you were glad to be able to draw on Christopher’s expertise, for example regarding B\u00fcrkert?<\/p>\n\n\n\n
Felix Wollenhaupt<\/strong>
There were certainly various turning points during the process, especially shortly before the deal was signed, when negotiations began and things got exciting. Shortly before the deal closing, it was very valuable to have an additional perspective and a sparring partner with whom we could discuss the various options. Looking back, this support was extremely helpful for us, and we were grateful for the assistance.\u00a0<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
It is said that there is a kind of \u201cstruggle for the best solution\u201d in collaboration. Did it play a role that we were able to bring both technical and strategic depth to the process?<\/p>\n\n\n\n
Joel Eichmann<\/strong>
I think in a case like ours, one cannot exist without the other. We discussed a lot with the Steinbeis team at the beginning. About applications, about markets, about market sizes. That was the basis for us to be able to enter the financing process with a strategic mindset.<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
The process went well; the collaboration was successful. Is there a moment that you are particularly proud of or where you feel that the knot was broken?<\/p>\n\n\n\n
Joel Eichmann<\/strong>
There was a great meeting, and I would say that was the moment when I felt that we had really crossed the finish line. We met with the B\u00fcrkert Executive Board. We were there with our CTO Lukas K\u00e4\u00dfer and our COO Zie Quann Wu, and we spent the whole day working on various topics with different teams from B\u00fcrkert.
At the end, there was a large meeting with almost the entire board, including CEO Georg Stawowy, and that was the moment when we realized that this wasn’t just working on a technical level, as we had already been working together. The people on the board understand us and know how to work with start-ups. It wasn’t their first time doing this, and after this meeting, I had the feeling that this could work.<\/p>\n\n\n\n
Magnus H\u00f6fer<\/strong>
That’s an important point. Consultants often tend to shield their clients too much – which has its advantages in negotiations, but we also make sure that there is enough space to build trust between people. Joel, on that very day, I also felt that there was a very good chemistry. You need that feeling that you can bring the project to the finish line together in the coming weeks and months.\u00a0<\/p>\n\n\n\n
Joel Eichmann<\/strong>
Absolutely. We prepared for this meeting together, discussed the agenda with you, and were briefed by you. At the same time, you gave us the confidence that we could successfully conduct the meeting on site without you.<\/p>\n\n\n\n
Felix Wollenhaupt<\/strong>
If I remember correctly, it was your suggestion, Magnus, to make this \u201chandshake deal\u201d beforehand. I think the term came from you. And that’s exactly how it went: we looked each other in the eye, shook hands, and that basically sealed the deal. Very old-fashioned, but it worked.<\/p>\n\n\n\n
Magnus H\u00f6fer<\/strong>
It proved its worth.<\/p>\n\n\n\n
Dr. Christopher Klein<\/strong>
We stand behind our clients, not in front of them. You have to shine, you must prove yourselves in the market. We are only there temporarily, as advisors, sparring partners, mirrors. Magnus and I deliberately work as a partner tandem, which is not a given in consulting firms. Our approach is to operate in the background. It is important that presentations come from you, that they are authentic and do not appear as if Steinbeis had prepared them. That is precisely our philosophy as M&A advisors.\u00a0<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
That brings me to the next topic. In retrospect, would you say that it is particularly useful in a team of three to have something like a \u201cSteinbeis signature\u201d in the process?\u00a0<\/p>\n\n\n\n
Felix Wollenhaupt<\/strong>
Absolutely. It was our first professionally conducted market approach in that sense. The process was much more structured and professional than in previous rounds, especially in terms of methodology.
We had a clear schedule and a defined process that we followed rigorously. In earlier rounds, we iterated much more and adjusted things spontaneously.\u00a0<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
Magnus, how much moderation, negotiation, and sparring is involved in your role in such processes?\u00a0<\/p>\n\n\n\n
Magnus H\u00f6fer<\/strong>
If you understand moderation to mean responsibility for the entire process, then that is one of our most important tasks. We are responsible for the momentum in the process: for adhering to the schedule, for maintaining investor interest, and for ensuring that there is no standstill at any point.
Sparring is also very important, especially when you notice that the client is not yet sufficiently prepared on certain issues. In this case, I think we did a very good job. Finally, we also worked on the strategic positioning, which was already very strong. We refined the strategic positioning a little more and provided communication support.<\/p>\n\n\n\n
Catharina H\u00fcbner\u00a0<\/strong>
We have developed an evaluation model specifically adapted to start-ups. To what extent did this play a role for you?<\/p>\n\n\n\n
Magnus H\u00f6fer\u00a0<\/strong>
Our added value lies not only in asking intelligent questions and presenting Green Elephant to investors in the most favorable light possible, but also in providing convincing arguments for an appropriate valuation.
We developed these in collaboration with Felix and the entire team, who already had a very professional business plan. We were then able to build on this to create a well-founded valuation document tailored to start-ups, which also played an important role in the negotiations.\u00a0
Ultimately, this provides a rational basis for negotiation. It is not necessarily one-sided but serves the entire process. It reveals the implicit assumptions and immediately identifies where the sticking points are, which issues still need to be addressed, and where there may be fundamental differences of opinion that cannot be bridged. This is exactly what can be worked out and – if both parties want it – a solution can be reached.\u00a0<\/p>\n\n\n\n
Dr. Christopher Klein<\/strong>
In addition, the specific shareholder structure was also a challenge. We were dealing with a company that was financed by equity, but which also had convertible loans that were due to expire at a certain point in time. This meant that we had a clock ticking and a timeline that we absolutely had to adhere to. In total, well over ten parties were involved, which had to be orchestrated accordingly.\u00a0<\/p>\n\n\n\n
Magnus H\u00f6fer<\/strong>
Not to mention the secondaries that were also involved! So, it was a rather complex deal with many moving parts, where nothing could be left to chance. Felix, you had a lot to juggle.<\/p>\n\n\n\n
Felix Wollenhaupt<\/strong>
I was very grateful that we didn’t have to do it alone.<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
You closed the deal, and at the same time, the industry continues to evolve. There is never a standstill. Where do you currently see the biggest upheavals in the biotech industry?<\/p>\n\n\n\n
Felix Wollenhaupt<\/strong>
In the industry, we are seeing a significant shift toward personalized medicine. Whereas in the past, for example, millions of doses were produced from a single production batch in vaccine production, new production technologies now enable the development of personalized therapeutics tailored to individual patients. This means that we are seeing a clear change in production, production resources, workflows, and processes.\u00a0
In recent months, we have seen the market picking up on this trend even more strongly, particularly under the banner of cell and gene therapies. It is precisely in this area that we want to establish ourselves as a relevant player in the long term.<\/p>\n\n\n\n
Dr. Christopher Klein<\/strong>
I found it very interesting that you are not involved in the field of typical cell cultures, i.e., cell suspensions, but rather with adherent cells. This is a very specific niche that has been relatively unoccupied until now but offers enormous potential.<\/p>\n\n\n\n
Joel Eichmann<\/strong>
The niche of adherent cells is indeed technologically underrepresented, but at the same time highly relevant in the market. That’s what makes it so interesting for us.
In the field of stem cell therapies and personalized medicine, where cells are processed directly from the patient, it is not possible to work with classic suspension reactors. Last year, we analyzed around 1,600 clinical studies and found that about a third of them are based on adherent cells. That is a significant market share, in which there are currently very few providers with innovative production technologies. We see a clear shift here.
The second major upheaval in the pharmaceutical industry concerns the issue of sustainability. Even though it is less prominent in the media at times, especially in the US, companies are consistently pushing ahead with this issue. Over the past two to three years, many pharmaceutical companies have launched corresponding programs.\u00a0
I am convinced that the right path lies in a combination of technological innovation and sustainability. Sustainability alone is rarely the strongest selling point. However, when both dimensions work together, it opens many doors with customers because you reach them through both technological progress and the sustainability aspect.\u00a0<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
What roles do speed and quality play, and how do you balance the two?<\/p>\n\n\n\n
Felix Wollenhaupt<\/strong>
In principle, as a start-up, we have a major advantage over established large companies in that we are very agile simply because of our structures. Our organizational and operational structure enables quick decisions and rapid implementation of innovations in the market. This is a significant advantage in a world that is becoming increasingly dynamic and uncertain.
On the other hand, we operate in a market with high barriers to entry. Many customers still rely heavily on proven solutions. It therefore takes time to build trust and gain sustainable market share. We must persevere with this process and apply it consistently, even if our agility already allows us to drive innovation forward more quickly.<\/p>\n\n\n\n
Dr. Christopher Klein<\/strong>
Personally, I really enjoy contributing as a Steinbeis consultant. Working with you has been a real pleasure; you are a great team that complements and supplements each other well.
We had many good laughs and at the same time felt that we were contributing something meaningful. Ultimately, it’s all about the noble goals of advancing the healthcare industry, improving patient care, and ultimately alleviating suffering. That’s what motivates us every day.\u00a0
It was particularly nice that the energy flowed in both directions. We often must push our clients, but with you it was different: you drove us forward, asking when the next step would come. We really liked that. We passed the ball back and forth elegantly, and that’s exactly why we managed to complete the project in just six months. The mandate agreement was signed in July 2024, the agreement was finalized in December, signed shortly before Christmas, and closed in January. This was also important in view of the maturity of the convertible loans. We met all the deadlines, even though deals in the market tend to take longer rather than shorter these days.\u00a0<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
Looking back on the entire process, with the speed and arguments you were able to bring to the table, what was the strongest argument for you to work with us?\u00a0<\/p>\n\n\n\n
Felix Wollenhaupt<\/strong>
The most important thing for us was to have a partner at our side who, on the one hand, has a deep understanding of the market, and on the other hand, understands our product and, thirdly, brings a strong network to the table. Those are the three core issues, and I think you presented a very good picture in that regard.<\/p>\n\n\n\n
Joel Eichmann<\/strong>
Perhaps I can add to that: Not only the market and the product, but also the entire expertise surrounding financing rounds and deal structures. For us, it was crucial that we had a complete package of know-how and people at our disposal. We also know the market, but this all-round package made the difference.\u00a0<\/p>\n\n\n\n
Felix Wollenhaupt<\/strong>
On a personal level, it also worked very well.<\/p>\n\n\n\n
Dr. Christopher Klein<\/strong>
I still remember our first visit to Giessen. My credo is to meet people in person and experience the \u201csmell of the stable\u201d of the company: seeing colleagues, visiting laboratories – that’s important to me in every project. You gave us a very warm welcome back then, including lunch at the food truck that regularly stops by your premises.\u00a0Later, we invited you to a closing dinner in Munich to return the favor. For me, these interpersonal and personal aspects are also part of the project.\u00a0<\/p>\n\n\n\n
Catharina H\u00fcbner<\/strong>
Finally, one last question: What advice would you give other young biotech companies to help them succeed in the market?<\/p>\n\n\n\n
Joel Eichmann<\/strong>
One key piece of advice would be to always allow more time. That sounds obvious, and everyone says it, but all the biotech and biotool companies I know report that timelines with customers ultimately end up being longer and more complex than one would like.\u00a0
A second point is to build up a broad network of supporters or even \u201cfans\u201d as early as possible. You should get out there as early as possible and tell the world what you’re working on, even if the product isn’t ready yet. This will give you quick feedback on whether the market sees the problem in the same way or has perhaps already found other solutions. At the same time, you can win your first customers, who may not generate large revenues yet, but who will test the technology and give positive feedback. Such early testimonials are extremely valuable.\u00a0<\/p>\n\n\n\n
Dr. Christopher Klein<\/strong>
When it comes to fundraising, many people immediately think of venture capital. In the biotech industry, VC was the first port of call for a long time. But the landscape has changed: today, there are more family offices, business angel networks, and, of course, the corporate venture arms of large pharmaceutical and medtech companies, which operate somewhere between strategic investors and financial investors.\u00a0
In my opinion, the strategic approach we have chosen here, which still leaves room for maneuver, is particularly interesting. Europe, especially Germany with its strong SME sector, offers an ideal basis for this. From a macroeconomic perspective, I believe it is worth considering and desirable not to sell valuable technologies and know-how to international corporations too hastily. Of course, we are not ruling out any options and are active at all levels and globally. However, we should give SMEs the opportunity to grow with technologies developed in this country.We have a lot of innovative strength in Germany and Europe, supported by institutions such as Steinbeis and Fraunhofer. I am therefore particularly pleased that a deal has been successfully concluded here between an innovative biotech start-up and an established, but still medium-sized company with 3,000 to 4,000 employees.<\/p>\n","protected":false},"excerpt":{"rendered":"