The Bavarian Growth Fund was initiated in 2015 by the Bavarian Ministry of Economic Affairs. Through the first fund, the Free State invested €71 million in 23 Bavarian startups. An additional €350 million was mobilized from domestic and foreign investors. Growth Fund Bavaria 2 followed in mid-2020, with €115 million invested by the Ministry of Economic Affairs. The EIB's commitment increases the volume of the fund, which is supported by LfA Förderbank Bayern and Bayern Kapital, to €165 million. Bayern Kapital will continue to be responsible for managing the fund. Bavaria's State Secretary for Economic Affairs Roland Weigert says:
"It is a core concern of our economic policy to provide courageous founders with promising ideas with optimal conditions for growth and success. After all, they are the drivers of innovation and thus decisively strengthen our competitiveness. With the EIB's additional €50 million for the Bayern 2 Growth Fund, we are specifically supporting even more Bavarian startups with highly innovative business models. The EIB's investment also represents a clear commitment to Bavaria as a business location. The personal visit of EIB Vice President Ambroise Fayolle and his delegation to Munich underscores this commitment and makes us very pleased."
“EIB supports investments that strengthen the competitiveness of the European economy”
“I am very pleased about the cooperation with LfA Förderbank Bayern in strengthening the Bayern 2 Growth Fund,”
says the Vice-President responsible for EIB activities in Germany Ambroise Fayolle.
“Highly innovative startups like Ororatech, German Bionic and Wealthpilot are considered key factors for employment, productivity growth, and sustainable jobs. With the support of the Investment Plan for Europe, the EIB prioritizes investments that strengthen the competitiveness of the European economy. This is especially true in these economically challenging times of the COVID-19 pandemic."
LfA Chairman of the Board Otto Beierl says Bavaria has a very powerful and innovative startup sector:
"For promising business models to successfully establish themselves in the market, external financing is often required, especially during the growth phase. As a co-investment partner, the Bayern 2 Growth Fund ensures that, in addition to state capital, private investors also provide additional funds to finance young companies."
The European Investment Bank's entry into the Bayern 2 growth fund with 50 million euros brings European funds to the Free State and is a very positive signal for Bavaria as a business and technology location, said Beierl.
“Clear commitment to the innovative strength of Bavaria as a business location”
The German Association of Small and Medium-Sized Businesses (BVMW) in Bavaria also welcomes the EIB’s involvement:
“The support of innovative startups within the framework of the Bavarian Growth Fund contributes to maintaining technological leadership and economic growth in Bavaria,”
says Achim von Michel, BVMW State Representative for Politics in Bavaria.
"Therefore, the expansion of the program is a very important step to permanently strengthen competitiveness and the labor market in Bavaria. We also see the European Investment Bank's participation in the Bavarian Growth Fund as a clear commitment to the innovative strength of Bavaria as a business location."
