The Federal Government and KfW have signed an agreement to launch RegioInnoGrowth. The Federal Government is thus implementing another measure outlined in its startup strategy to strengthen innovative companies and complementing the funding of future technologies under the Future Fund. For this purpose, the Federal Government is providing funding from the Future Fund and the ERP special fund up to 450 million euros.
RegioInnoGrowth aims to enable regionally tailored financing solutions through cooperation with state development institutions. The involvement of private investors such as business angels or family offices is also possible. The federal government assumes up to 70 percent of the risks, with the remaining shares being provided by the states and, where appropriate, private investors. Companies can each receive up to five million euros, which can be provided, for example, in the form of mezzanine capital or subordinated loans.
RegioInnoGrowth thus builds on the model of the Pillar II of the Corona aid package of the federal government for startups and medium-sized companies.
“Improved framework conditions for startups”
State Secretary in the Federal Ministry for Economic Affairs and Climate Protection Sven Giegold says:
"With RegioInnoGrowth, we are promoting the innovation potential of startups and growth-oriented small and medium-sized enterprises. This particularly benefits companies that otherwise have little access to venture capital. The German government is consistently implementing its startup strategy. Through tailored financing options, we are improving the framework conditions for startups and innovative companies in Germany."
Katharina Herrmann, Member of the Executive Board of KfW, adds:
"The transformation into a sustainable, innovative, and resilient Germany is gaining momentum. It is being driven primarily by startups and innovative SMEs, which require a solid capital base for their continued growth. RegioInnoGrowth adds an important federal component to the financing landscape for innovative companies. Germany has a unique funding system in which KfW and state development institutions work closely together with their regional expertise. This provides ideal conditions for strengthening the spirit of invention in Germany."
