Private Markets 2.0

Digitization has disrupted many industries. We believe that private market investing will not be an exception: If big data, machine learning and artificial intelligence are rigorously applied, investors will get the private markets’ risk, return and liquidity profiles they really want. Our roots in world-leading private markets research enable us to provide the analytical tools of the Private Markets 2.0 era.

A better understanding of the desired solutions is not enough. The other side of the equation, access to those solutions, must also be solved. Our deep investment experience enables us to deliver the customized financial solutions that investors deserve.

That is why we have founded equation Capital: we build digital tools and tailor-made investment solutions for the digital era of venture capital and private equity investing.

The innovation gap

We must acknowledge: the innovation gap between Europe and the US, and notably China, is immense. The supply chain of innovation capital seems to be broken, and we must fix it.

Both founders of equation, Professor Reiner Braun and Mark Schmitz have spent a considerable amount of time thinking about solutions for the innovation gap. After working directly with the CIO of Allianz, Reiner moved back academia and applied his sharp academic-analytic lens in a study mandated by the National Academy Of Science and Engineering (acatech), in which the authors provided recommendations to enhance innovation by strengthening the European finance ecosystem. The study was well received by both policymakers and within the industry .

“Companies with high capital requirements shouldn’t have to turn to non-European investors simply because they can’t raise enough venture/growth capital in Europe. This purely capital-led exodus could be prevented by mobilising more domestic capital both in Germany and in Europe as a whole”

Mark had a front row seat observing the development of European VC activity over close to a decade in his capacity as founding team member and Partner at Lakestar. Lakestar is today one of Europe’s largest VC investors. Yet, there is a new breed of investors that need support and capital to make the European technology landscape catch-up to satisfactory, GDP-adjusted levels. There is still a lot to do in order to bring attractive private market investments closer to the levels of US endowments, foundations, pension funds and insurance companies.

Creating equation

equation is the logical conclusion of all our previous activities and beliefs. Our mission is to create improved, resilient financial products and tooling to move capital where it is needed.

Our products meet institutional standards because they need to. Deploying a technology- and evidence-driven investment model, we are working to close the European innovation gap, drive better returns and enable more entrepreneurship and funding structures to emerge.