Germany launches a €10B fund to support late-stage startups
Late November, the German Bundestag approved the launch of the “investment fund for future technologies” to provide late-stage startups with the state capital. The government agreed to invest a total of €10 billion between 2021 and 2030 hoping to at least double this amount in private venture capital investments, Handelsblatt reports.
It is big news for German startups, because, according to Sifted, the share of domestic capital in Germany is the lowest of any major ecosystem in Europe, and the startups mainly rely on big cheques from foreign investors.
“The Bundestag has created the necessary budgetary conditions for significantly improving the financing of start-ups in Germany,” the president of the Federal Association of German Startups Christian Miele emphasized.
For the success of the fund, it will be decisive to mobilize fresh capital from private and state institutional investors, such as insurance companies or pension funds. In order to encourage them, the first step towards the supporting growing companies has already been done – €2.4 billion will be provided from the 2021 budget via the KfW, Germany’s developmental bank.