MIG Fonds 18: Venture Capital Access With a Direct Company Exposure Strategy
MIG Fonds 18 is the latest closed-end venture capital fund from the HMW Group, targeting retail investors across Germany and Austria. Unlike many fund-of-funds in the evergreen space, MIG Fonds 18 invests directly into companies, offering a very different kind of exposure—not a Dachfonds, but a traditional, direct venture capital fund.
This fund is positioned as a way for individuals to access high-growth startups, especially in the life sciences and deep tech sectors, in a structure that mirrors the approach of institutional VC funds.
So how does MIG 18 stand out—and what tradeoffs does it require?
What Makes MIG Fonds 18 stand out?
1. Direct Investments in Startups – No Fund-of-Funds Layer
The most important distinction: MIG Fonds 18 does not invest in other funds. It allocates capital directly into individual, unlisted European startups—typically 10–15 in total, across sectors like biotech, medtech, robotics, and digital health.
2. Pure Venture Capital Focus – Not Buyout or Secondaries
That means:
- Exposure to companies before they go public or are acquired
- Higher potential upside, but also significantly higher risk
- Heavy concentration in R&D-heavy industries, with long development timelines
3. No Liquidity Options – Long-Term Capital Lock-In
This is a fully closed-end structure with no redemption windows. Investors commit capital either via a single upfront investment or through annual capital calls over six years. The fund has a fixed maturity in 2037, and investors should expect to wait until 2034 or later for meaningful distributions.
4. Actively Managed by a Dedicated VC Team
The fund is managed by MIG Capital AG, a firm with a long track record in German and European venture investing. The portfolio is built through a hands-on sourcing and diligence process, with:
- A funnel of 1,000+ deal proposals per year
- Strict screening by internal experts and external advisors
- Close support of portfolio companies post-investment
Returns & Outlook: High Potential, High Uncertainty
There is no official return target or forecasted IRR. As a venture capital fund, MIG 18 avoids projecting performance. However, previous MIG vintages have seen significant exits (e.g., BioNTech, Immatics, NFON), though results vary widely by fund.
The fund aims to return capital primarily through successful exits (e.g., IPOs, M&A). Dividends are not expected. Loss of capital is possible, and the time to realization can span over a decade.
Fees & Costs
MIG Fonds 18 is a retail venture capital product, and costs reflect that. The cost structure for MIG Fonds 18 includes several components. There is an entry fee (Agio) of up to 5%. Additionally, front-loaded structuring and distribution fees amount to approximately 9.5% of the invested capital. Ongoing running costs are estimated at around 2% per year. Lastly, there is a performance-linked fee of about 7.5% on exit gains, applied as a transaction fee.
Who Should Consider MIG Fonds 18?
This fund is designed for investors who:
- Want direct exposure to European startups—not via other funds
- Can tolerate high volatility and long lock-ups
- Seek asymmetric return potential from high-impact, early-stage tech
- Understand that capital loss is possible, and liquidity is nonexistent
Final Verdict: A Pure-Play VC Fund for Risk-Tolerant Individuals
MIG Fonds 18 offers something different: real venture capital exposure for retail investors, without layering in fund-of-funds complexity. The tradeoff is obvious—illiquidity, high risk, and high cost—but for the right investor, the potential upside is compelling.
This is not a diversification tool; it’s a high-conviction, high-volatility venture bet. If you want to be closer to the next wave of European innovation—and accept what comes with that—MIG Fonds 18 may be one of the few ways to get there.
Up next in our series… Stay with us for more analysis on private equity access funds, evergreen structures, and how retail investors are navigating the private markets landscape.