At the end of July, the cabinet adopted a comprehensive startup strategy – the first ever by a federal government. Their goal is to strengthen the startup ecosystems in Germany and EuropeThe measures were developed in a process involving various stakeholders in the startup ecosystem and are divided into a total of ten fields of action.
Robert Habeck, Federal Minister for Economic Affairs and Climate Protection, explains:
"Future economic policy projects must be pushed forward, especially in difficult times like these. The German government's startup strategy is therefore a very important signal. Startups are young, innovative companies that want to grow. They develop new ideas and drive innovation. Startups push us toward the future. By improving the conditions for startups in Germany and Europe, we simultaneously strengthen our business location."
And Federal Finance Minister Christian Lindner says:
"I want to make Germany a republic of entrepreneurs. The startup strategy presented now serves this purpose. There is no shortage of private capital for innovations. However, the right framework conditions for investments in startups to succeed are often lacking. As Federal Minister of Finance, I want to improve financing options. To this end, we will soon present a Future Financing Act. It is intended to make it easier for startups to access the capital market and raise equity. We will also strengthen employee share ownership so that it becomes a real boost to ownership. We will reduce bureaucracy – because only then will founders be able to concentrate on what they do best: turning their ideas into reality."
Overview of the fields of action of the startup strategy
1. Strengthen financing for startups: To achieve this goal, the Federal Government plans to expand financing options for startups. Among other things, 10 billion euros of public funding will be made available to KfW by 2030, and a Future Financing Act is intended to increase Germany's attractiveness as a financial center. Furthermore, the Cabinet intends to INVEST program relaunch, extend the VAT exemption for venture capital funds and launch the fourth generation of the High-Tech Gründerfonds.
2. Make it easier for startups to attract talent – make employee share ownership more attractive: To combat the shortage of skilled workers, the German government has come up with a number of measures that will benefit not only startups, such as support for the EU "talent pool," changes to immigration law, and the acceleration of administrative procedures. However, plans to simplify employee share ownership and to adapt income tax law for this purpose are likely to be of particular interest to startups.
3. Ignite the entrepreneurial spirit – make start-ups easier and more digital: To promote start-ups in Germany, measures such as the online establishment of a GmbH, which has already been possible for a short timeThe government has set itself the goal of making start-up processes entirely digital and, if possible, within 24 hours.
4. Strengthen female startup founders and diversity in startups: This field of action encompasses the promotion of various underrepresented groups. Female founders will be supported, among other things through the establishment of the new funding line "EXIST Women" as part of the EXIST funding programFor founders with a migrant background, the government intends to create a forum for better networking, which will compensate for the often-lacking networks they often have. Furthermore, a new instrument within the Future Fund will ensure that women, migrants, and other groups that have previously been underrepresented in the venture capital market have better access to venture capital.
Research, social entrepreneurship and public procurement
5. Facilitate startup spin-offs from science: The cabinet also intends to increase support for the spin-off of startups from universities and research institutions. To this end, the "EXIST Potentials" funding program will be supplemented by a "Lighthouse Competition for Entrepreneurship Centers" and the "Exist Potentials" program will be expanded. “Biotechnology Start-up Initiative” (GO-Bio) be reissued. In addition, the federal government intends to provide more assistance and support in the transfer of intellectual property (IP) and establish an arbitration board with a deal database.
6. Improve the framework conditions for public-benefit startups: For social startups, the government intends to develop new and appropriate funding sources and a comprehensive social entrepreneurship strategy. It also intends to address the previously untapped startup potential at universities with a social science, non-technical profile and develop new formats for the EXIST funding program.
7. Mobilize startup skills for public contracts: Another goal of the startup strategy is to give startups and their innovative offerings significantly greater consideration in public procurement in the future. To achieve this, an e-marketplace for improved market overview and a central announcement service for public tenders will be established. Furthermore, innovative, social, and environmental aspects will be more clearly considered in future tenders.
A legal right to open data
8. Make it easier for startups to access data: To ensure legally secure access to sufficient, high-quality data for startups, the German Federal Government intends to advocate for incentives for data sharing and for certain mandatory data access provisions as part of the negotiations on the European Data Act. Furthermore, the establishment of the planned data institute will take greater account of the needs of startups. Another measure in this area is the creation of a legal right to open data vis-à-vis the federal government.
9. Strengthen real-world laboratories – facilitate access for startups: Real-world laboratories make it possible, especially for startups, to test innovative technologies or business models in a real-world environment under the supervision and support of the relevant authorities, which are still limited by the general legal framework. They are to be strengthened by a dedicated real-world laboratories law that creates an innovation-friendly framework.
10. Put startups at the center: This part of the federal government's new startup strategy primarily includes networking measures. For example, the federal government plans to host the first "Startup Summit Germany." It also intends to establish a network of contact points for startups in all federal ministries and subordinate authorities and further expand the Digital Hub Initiative. Furthermore, the networking of the SME Digital Centers with startup initiatives will be strengthened.
