The federal government would like to expand access to capital for young, innovative technology companies. This is intended to provide even greater support for start-ups that invest in artificial intelligence, climate, quantum or biotechnology, for example. For this purpose, the federal government is earmarking 1.6 billion euros from the future fund, which was previously held as a strategic reserve, as well as 150 million euros from the so-called ERP special fund.
“We can now better support innovative start-ups that invest in future technologies. We want to use funds from the Future Fund to help young companies in Germany establish themselves on the global market. In doing so, we are strengthening Germany as an innovation and start-up location and future technologies such as artificial intelligence,” said Federal Minister of Economics Robert Habeck. In addition to the 1.75 billion euros in public funds invested by the federal government, there is at least the same amount in private funds. “We are talking about a total volume of public and private funds of at least 3.5 billion euros, which are also available for investments in the German venture capital market,” emphasized Habeck. The gradual introduction of corresponding products is planned for the end of 2024.
This is how the money should be invested
The funds are to be invested as follows: KfW Capital, a subsidiary of the KFW banking group, is to use 850 million euros together with private venture capital funds for direct investments in young start-ups in innovative technology areas. Around 500 million euros are earmarked as a German contribution to strengthen the exit financing of European tech champions. This is intended to prevent their migration to non-European countries. 200 million are to flow into the Germany Growth Fund via KfW Capital. The same amount is earmarked for impact venture capital funds. These special funds aim not only for a financial return, but also for a measurable positive social or environmental impact.
2024-02-08 09:23:22
#Federal #government #money #tech #startups #News
