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BASF Venture Capital: a bridge into the startup world

Since its founding in 2001, BASF Venture Capital has invested in startups across the globe, supporting the development of innovative technologies and business models to find solutions for the biggest challenges of our time.

When it comes to building a successful company, startups face a long and bumpy road. According to Forbes, one fifth of startups fail within their first year, and one of the most common reasons is lack of funding. Receiving funding and the right partner to get a business to the next level can be challenging, but possible.

BASF Venture Capital (BVC) has invested in startups across the world for over 20 years, pushing forward their innovative ideas and technologies and helping the companies thrive. This is no easy task, and there are no guarantees, but this corporate venture capital enterprise has the knowledge, expertise and courage to bring startups with disruptive technologies to the next level. It is BVC’s goal to create strategic value for both the startup and BASF.

Learn more about how BVC operates and how it contributes to BASF’s innovation strategy, from Investment Manager, Joshua Speros.

Diving into the startup investment world

Former polymer scientist turned investment manager, Joshua Speros, has been at BASF for 12 years, and worked in different capacities across the United States. He began his career in research, as a polymer scientist, and four years later, he shifted focus to strengthening bonds with academic partners as an Innovation Manager in BASF’s California Research Alliance (CARA). After five years, he changed gears and dived into the startup world as Investment Manager at BVC, where he has been for the past three years.

As investment manager, Joshua is tasked with “identifying investment opportunities, executing deals, supporting a startup’s development post-investment, and helping to realize a successful exit. The real works starts after the deal is done.” BVC is a wholly-owned subsidiary of BASF with offices in seven different locations, three of them in North America (Toronto, Ontario, Los Angeles, California and Boston, Massachusetts) and 15 employees. As an evergreen corporate venture capital fund, BVC seeks both financial returns to grow the fund, and a strategic fit such that BASF benefits from startup innovations.

Striking gold in a universe of ideas

BVC narrows down the vast number of startups by focusing on innovations in five areas of importance to BASF: decarbonization, circular economy, biotechnology, digitalization, and new materials. These areas balance the availability of startup technologies with the needs of BASF core businesses in order to support the Winning Ways strategy.

Out of the entire universe of startups available, there are three key questions investment managers focus on to determine whether the startup is a good fit.

1. Is the startup working on something relevant for BASF?

Bringing value to BASF and its customers is a priority for BVC. In Joshua’s words, “Our job is to help BASF be successful for another 160 years. And we play a role in that by helping startups launch innovative businesses that BASF can benefit from”.

The specific benefits that startups and their innovations will ultimately bring to BASF is not something anyone can easily predict. However, BVC makes it a point to invest in startups aiming to solve problems that BASF and our customers care deeply about. In this way, they ensure that the successful startups deliver value to BASF.

2. Is the startup actionable? Can BASF provide additional value beyond investment?

BVC investment managers strive to add value to the start-ups they invest in, going beyond just providing capital. These value-added activities take many forms. For example, BVC and BASF colleagues can share technological, customer, and market insights that are both beneficial and instructive to young companies who cannot afford to make many mistakes.

BVC investment managers can serve as board members to help guide the startup’s overall direction. Facilitating collaborations with BASF experts or partnerships with BASF businesses are additional examples. The goal is an alignment of interests that benefits the start-up, the BASF group, and BVC as the investor.

3. Is the company investible?

In essence, is the startup a financially attractive investment? Does it have the right team, technology, and business model in place to increase the odds of commercial success and ultimately generate investment returns for BVC?

Once BVC identifies an investment opportunity, a rigorous process of due diligence and stakeholder alignment begins. BVC will meet with the startup, other investors, startup partners and/or customers, and of course, BASF colleagues to build conviction around the investment.

However, as Joshua remarks, no investor will ever be 100% secure in their decision to fund a startup: “You will never have all the information, and at some point, you must take a leap. Venture capital is risky by definition, and perfect can't become the enemy of good.”

Early-stage deals

BVC investment managers primarily focus on deals in the Seed to Series B range. At this stage, start-ups have typically secured early funding and developed a product or service, often with initial users or customers lined up. BVC aims to invest at the critical point where these start-ups can turn their technology into early commercial success.

“We can be the lead investor, but more often we partner with a lead investor as part of an investor syndicate. Our goal isn’t to write the largest check but to create strategic value for both the start-up and BASF,” Joshua expands.

BVC can take on various investment roles, including serving as a voting board member or a board observer. One of the main reasons BVC operates as a separate legal entity is to ensure that their primary responsibility as an investor is to support the start-up's success. As Joshua explains, “Our responsibility as an investor is to help the startup succeed. Their success can mean BASF’s success, but we must work hard to avoid any conflicts of interest. In short, BASF’s interests cannot trump our fiduciary responsibility to the startup”.

^{Joshua Speros and Jin Lim, CEO, CTO and co-founder of ACT-ion.}

ACT-ion Battery Technologies, a success story

One of the proudest moments of Joshua’s tenure as investment manager was the deal he closed with ACT-ion Battery Technologies. The deal was brought to him two years before by another corporate venture capital group looking for additional investors. The startup had developed a technology to produce cathode active materials (CAM) using supercritical water.

BASF provides a wide range of CAM products, which are used in lithium-ion batteries to power electronic vehicles and devices. CAM is typically produced through the coprecipitation method, in a batch reactor, but through ACT-ion’s process, the continuous production of CAM is achieved with a streamlined process. This reduces raw material usage while also saving time and energy.

BVC assumed the role of lead investor and brought other high-quality investors to the table to raise 7.5 million US dollars.

“I am so proud that we got to lead the whole effort. There are many risks, but if the technology works, it will have an outsized impact on the cathode active material and lithium-ion battery industry,” Joshua remarks.

With the strategic backing and deep chemical expertise of BASF, ACT-ion is poised to redefine cathode active materials manufacturing. This partnership is crucial for accelerating the delivery of sustainable, high-performance battery materials at the scale the market demands, without compromising on performance or affordability.

Jin Lim

Chief Executive Officer (CEO), Chief Technology Officer (CTO) and Co-Founder of ACT-ion.

In an investor-friendly market like today’s, possibilities are endless. “While competition for strong deals is intense, our focus remains on identifying and capturing the most valuable partnerships. With a vibrant entrepreneurial ecosystem, thankfully, there will always be a pipeline of innovative startups that align with our strategy,” he concludes.

BVC is key to building a strong innovation pipeline to transform BASF, connecting the dots between entrepreneurs and the chemical giant, all with one purpose in mind: to create chemistry for a more sustainable future.

Learn more about BASF Venture Capital

Published on November 18, 2025, by Mariana Licio.

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