Companies have promised billions in support to finance young, innovative start-up companies. They want to invest around 12 billion euros in venture capital by 2030, as the German government and the state development bank KfW announced at a start-up summit in Berlin.
A joint declaration of intent was signed with companies including Allianz, Commerzbank, Deutsche Bank and the US asset manager Blackrock as well as Deutsche Börse, Telekom and Henkel.
The statement says that the investments made so far and the improved framework conditions for start-ups are not sufficient in international comparison.
Federal Chancellor Olaf Scholz (SPD) spoke of “really good news” for German start-ups and Germany as a business location. The initiative was intended to mobilize private investments in venture capital, start-ups and innovative technologies. Federal Finance Minister Christian Lindner (FDP) said: “Only if we succeed in mobilizing more private capital will we create additional growth.”
Improve conditions
A comprehensive package of measures was announced to improve the framework conditions for growth and innovation capital. Start-ups and so-called scale-ups play an important role as innovation drivers in the German economy, it was said. However, these companies need sufficient financing and viable structures to grow into competitive companies. Federal Minister of Economics Robert Habeck (Greens) said that barriers to investment should be removed.
The president of the digital association Bitkom, Ralf Wintergerst, said the initiative would facilitate and improve financing for many German start-ups. Young tech companies in Germany could grow faster and strengthen the technology and innovation location.
The startup association recently called for a tripling of so-called venture capital investments by 2030 in order to close an annual financing gap of around 30 billion euros in Germany. To do this, it is necessary to mobilize more private capital for venture capital, especially from institutional investors such as insurance companies. Numerous IPOs of young companies outside of Europe have led to a considerable loss of value creation for Germany as a business location.
© dpa-infocom, dpa:240917-930-235368/1
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