Start-up Jan 26, 2021

Future fund for start-ups: German Bundestag releases ten billion Euros

Young companies bring a breath of fresh air to the German economy. They work purposefully towards the future with innovative idea, groups of companies which are already established benefit from their ideas. The federal government is aware of the great importance of start-ups and has requested financial resources to support them – which have now been released with the adoption of the federal budget.

Investment fund for future technologies supports start-ups in every phase

In order to ensure long-term financial assistance for start-ups, the federal government requested a future fund at KfW-Kreditanstalt für Wiederaufbau to the amount of ten billion Euros. With the adoption of the 2021 Finance Act, the Bundestag has now given the green light for the financial assistance which, together with public and private partners, will amount to at least 30 billion Euros.

KfW, the world’s largest state development bank, manages a large proportion of the future fund. Source: KfW image archive / Rüdiger Nehmzow

The KfW future fund covers all phases of the development of a company and serves as a supplement to the financial offerings already available from the Ministry of Economics  and the federal government. The financing supports start-ups from the beginning of their foundation through the growth phase to scaling up. There is a particular focus here on later expansion on international markets.

Growth finance for start-ups in the next ten years

In concrete terms, the financial resources will be provided to venture capital companies from the fund over the course of the next ten years. The money is then provided directly to promising companies by the European Investment Fund or the High-Tech-Gründerfonds, for example, in addition to KfW. Another goal of the project is the activation of German venture capitalists as investors in late financing. The increasing number of funds points towards a promising future here.

Young companies benefit not just at a federal level 

Bavaria is already supporting promising companies under the auspices of the investment fund for future technologies. For example, Bayern Kapital manages the Bayern extended seed fund which builds a bridge for young Bavarian technology companies between the seed phase and the start-up phase. Good ideas often fail due to a lack of financing, which is why the fund is of great value in the early stage of foundation in particular. Bayern Kapital manages the Bayern 2 growth fund introduced by the Bavarian Ministry for Economic Affairs, among others. Around 115 million Euros is available to local start-ups, with the focus on the technology sector once again. 

In collaboration with BayStartUP and Gründerland Bayern , Invest in Bavaria support innovative start-ups from abroad with their entry into the German or European market. The detailed conditions for participation in our Ois Easy support programme can be found on our website.

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