More funding for the Bavarian start-up scene
Networks, liquidity and potential – Bavaria offers ideal opportunities for founders and start-ups. The most recent example is a fund that has been increased for stimulating the Bavarian venture capital market.
Digitalisation enables many young entrepreneurs to make their dream of independence come true. A series of success stories additionally serves as a source of inspiration for the scene to venture into the unknown. The State of Bavaria supports entrepreneurs on their path to running an own company by means of numerous programmes and points of contact, in many cases in cooperation with private initiatives. The "Gründerland Bayern" initiative, for example, is a financing network for the entire state which is intended to support start-ups in searching for investors – as young entrepreneurs are still dependent on investors who put their faith in the success of a start-up.
Strong signal for Bavarian start-ups
But this is not the only beneficial aspect for founders in the State of Bavaria. Ilse Aigner, Bavaria's Minister of Economic Affairs, recently announced that EUR 50 million have been added to the so-called LfA-EIF Facility. Behind the somewhat complicated name is a fund of funds with a volume of EUR 100 million, which was set up in equal parts by the European Investment Fund (EIF) and the LfA Förderbank Bayern in 2009. Its goal is to kick-start investments of Bavarian venture capitalists. The fund does not invest directly in any companies, but provides venture capital companies with additional financial funding for actual investment projects promised to Bavarian start-ups, thereby serving as a lever.
The plans are very ambitious. Following the increase of the LfA-EIF Facility to a total of EUR 150 million, the overall objective pursued with the fund is to trigger about EUR 375 million in investment in Bavarian high-tech start-ups, together with EU and private funds. So far, this objective has been achieved exceptionally well: as of today, EUR 33 million have already been paid from the fund of funds (with LfA and EIF each providing one half) to the Bavarian venture capital funds. This means that every euro from the LfA initiated EUR 5 in investment in start-ups from Würzburg to Munich.
By increasing the fund Bavaria, sets a strong signal towards the further improvement of the investment environment. At the same time, this commitment also sends a strong message to the start-up scene to make their business models and ideas come true in the State of Bavaria.