Germany to Invest ?10 Billion in Start-Up Support

BERLIN, Nov. 27, 2020 /PRNewswire/ -- Early on Friday, after a marathon 17-hour budgetary meeting, the German Bundestag approved a massive investment of state capital to promote start-ups in the country. The 2021 budget will see the government provide ?2.4 billion via Germany's developmental bank, the KfW, and other channels to help new and growing companies scale up their activities.

The government has committed to investing a total of ?10 billion between next year and 2030. It is hoped that this financial infusion will create an additional ?20 billion in private venture capital investments.

"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 Start-Ups, Christian Miele, told German business newspaper Handelsblatt.

Robert Hermann, the CEO of the German national economic promotion agency Germany Trade & Invest (GTAI) welcomed the parliament's decision.

"This is fantastic news," says Hermann. "Business advocates have long called for better access to domestic venture capital for young German companies ? a need the governing German cabinet and parliament have now addressed. The allocation of such a large sum shows that amidst all of the economic disruption going on right now, there are significant positive changes as well. For innovative young companies, this could be a very good time to consider expanding to Germany."

Germany Trade & Invest (GTAI) is the economic development agency of the Federal Republic of Germany. GTAI supports German companies setting up in foreign markets, promotes Germany as a business location and assists foreign companies setting up in Germany.

Contact:
Jefferson Chase
Senior Manager, Communications
Germany Trade & Invest
Friedrichstraße 60
10117 Berlin
+49 30200099170
[email protected]

SOURCE Germany Trade & Invest