DePoly and Rubedo are two start-ups that specialise in energy-efficient recycling technologies, or anti-ageing skin care products. What these companies have in common is a connection with Beiersdorf. The consumer goods group invested in them through the venture capital unit under the brand umbrella of „Oscar & Paul Beiersdorf Venture Capital“.

In the spirit of founding fathers Oscar Troplowitz and Paul Beiersdorf, the unit, like many other areas of the company, contributes to Beiersdorf's innovation and growth, with the goal of becoming the world's best skin care company, says Christopher Sheldon, Head of M&A and Venture Capital at Hamburg's only Dax-based company.

Beiersdorf has set up its venture capital activities as an internal unit. The company does not specify what financial volume it has. But It is stated that the unit is equipped with long-term capital, with a long-term-oriented investment approach. The duration of an investment is decided taking strategic and financial aspects into account.

There are also limits to the size of stakes. As a strategic investor, Oscar & Paul is aiming for a maximum stake of 20%, according to the group. Beiersdorf currently holds a total of nine investments via Oscar & Paul, five of which are in start-ups, and four investments in strategically relevant venture capital funds. The unit views it as essential to bring the expertise, network and global market access into cooperation with start-ups, in order to work together on new, promising solutions in modern skin care and sustainability.

At a capital markets day in mid-June, Beiersdorf – driven by improved economic results in recent years – underlined its claim to global leadership in the skin care industry. The management in the new headquarters is focusing on strengthening iconic brands, groundbreaking innovations, and opening up additional regions („white spots“) to expand the product presence.

Innovation and a pioneering spirit are an essential part of Beiersdorf's DNA, and have been the key to success since the company was founded more than 140 years ago, according to the Hamburg-based company's credo. In the context of the further developed group strategy „Win ​​with care“, the focus on this innovative strength will be increased again.

At the end of 2023, the company had 1,686 employees in research and development worldwide, almost 100 more than in the previous year. Of these, 1,026 employees worked in the Consumer division with its skincare brands, and 660 worked in the Tesa division. At 320 million euros, research and development expenses last year were 10% higher than the previous year. In the Consumer division alone, 241 million euros (+11.6%) were invested. In the Tesa division, 79 million euros (+6.2%).

Real innovations arise at the interface of various specialist expertise and technologies, says Gitta Neufang, Corporate Senior Vice President of Global Research & Development, and member of the Beiersdorf Executive Committee. „We, therefore, always specifically combine our own innovative strength with a strong focus on skin biology and formula development with the specialist knowledge of selected external partners.“

When it comes to groundbreaking innovations, the company wants to focus on three key areas in the coming years, which are also seen as global growth drivers. On the one hand, Beiersdorf relies on the active ingredient thiamidol to combat hyperpigmentation. The world's most effective active ingredient against pigment spots has already generated sales of 800 million euros since its introduction in 2019. The second hope is the new active ingredient Epicelline, the first result of our epigenetic skin research. Beiersdorf plans to bring its first skin rejuvenation product onto the European market in September.

Thirdly, the group expects opportunities in the area of ​​microbiome research and cooperation with the life science company S-Biomedic in the treatment of acne. Beiersdorf manager Sheldon highlights the Belgian company as an example of investments with which the group is committed to promising technologies, approaches and ideas at an early stage in order to consolidate and expand its own position as an innovator in modern skin care and an industry leader in the area of ​​climate protection. „S-Biomedic very aptly illustrates the role of venture capital investments in Beiersdorf’s innovative strength," he says.

After an initial commitment in the single-digit million euro range agreed in 2018, the Nivea manufacturer acquired a majority stake in the Beerse-based company at the end of 2022, which specialises in researching the cosmetic and therapeutic potential of the skin's microbiome – the habitat of billions of bacteria and an essential factor for skin health. S-Biomedic, which, according to Sheldon, is a pioneer in the field of skin microbiome research, has been run as an independent unit within Beiersdorf's existing microbiome program since taking over the majority shareholding. The first products can be expected in this critical area of ​​acne treatment in the coming years.

The Hamburg-based group's venture capital unit is focused on solutions in the areas of life science & biotech, sustainability, digitalisation and beauty tech. When identifying and evaluating start-up investments, Beiersdorf says it will follow the usual procedures in the venture capital market. In addition, it has built up a portfolio of venture capital fund partnerships in the relevant areas, in order to create additional access to expertise and market knowledge. Beiersdorf is looking for venture capital opportunities worldwide, with a focus on Europe, North America and Korea.