{"id":12950,"date":"2016-07-25T16:28:55","date_gmt":"2016-07-25T14:28:55","guid":{"rendered":"http:\/\/cms.munich-startup.net\/?p=12950"},"modified":"2017-06-14T16:22:52","modified_gmt":"2017-06-14T14:22:52","slug":"subsidized-venture-capital","status":"publish","type":"post","link":"https:\/\/cms.munich-startup.net\/en\/12950\/subsidized-venture-capital\/","title":{"rendered":"Billions for state-backed venture capital"},"content":{"rendered":"<div class=\"entry-content\"><p><strong>More venture capital for German and European founders: The European <a href=\"https:\/\/www.bmwi.de\/DE\/Themen\/Mittelstand\/Mittelstandsfinanzierung\/innovationsfinanzierung.html\" target=\"_blank\">Venture capital instruments ERP\/EIF fund of funds and the European Angels Fund <\/a>are in high demand and have been increased by one billion euros to 2.7 billion euros, according to the Federal Ministry of Economics. <\/strong><\/p>\n<p>According to a recent report in the daily newspaper \u201cDie <a href=\"http:\/\/www.welt.de\/print\/wams\/wirtschaft\/article157250754\/Die-Milliarden-Show.html\">World&quot; <\/a>now also after: <strong>Together with KfW Bank, a new start-up fund called \u201cTech Growth Fund\u201d with a volume of ten billion euros is to be created.<\/strong> A total of 20 billion euros in capital is expected to be available. This means that for every euro of venture capital, founders could receive a one-euro loan at preferential rates through the state-owned development bank KfW.<strong><br \/>\n<\/strong><\/p>\n<h3>Access to venture capital is crucial<\/h3>\n<p>Federal Minister for Economic Affairs Sigmar Gabriel explains:<\/p>\n<blockquote><p>&quot;A crucial success factor for a dynamic startup scene is good access to venture capital. We need to become even more attractive in this area in Germany.<br \/>\nBy increasing our proven financing offerings by one billion euros, we have come one step closer to our goal of initiating a new era of entrepreneurship in Germany.&quot;<\/p><\/blockquote>\n<p>Since its launch in 2004, the <strong>ERP\/EIF fund of funds<\/strong> has taken on an important role in startup financing by participating in venture capital funds that invest in early- and growth-stage technology companies.<\/p>\n<h3>Co-financing and follow-up financing<\/h3>\n<p>The project, which is also financed by EU funds, <strong>European Angels Fund<\/strong> <strong>offers co-financing<\/strong> <strong>for<\/strong> Investments of experienced <strong>Business Angels<\/strong>. The above-mentioned funding offer is supplemented <a href=\"\/en\/8853\/venture-capital-for-german-startups-bmwi-eif-and-kfw-launch-new-initiative\/\">since spring 2016 through the program<\/a> <strong>ERP\/EIF Growth Facility<\/strong>, the <strong>Follow-up financing<\/strong> should support.<\/p>\n<p>The total volume of these three venture capital instruments\u2014the ERP\/EIF Fund of Funds, the ERP\/EIF Growth Facility, and the European Angels Fund\u2014will amount to \u20ac3.2 billion in the future and is intended to support the financing of startups, high-tech companies, and companies with high growth potential. Since the investments are always made together with other private investors, this commitment provides a strong leverage effect.<\/p>\n<h3>Balance sheet for \u201cINVEST \u2013 Grant for Venture Capital\u201d<\/h3>\n<p>The aim is also to leverage more private venture capital in Germany. <strong>German funding program \u201cINVEST \u2013 Grant for Venture Capital\u201d<\/strong> serve. The <a href=\"http:\/\/www.business-angels.de\/invest-zuschuss-fuer-wagniskapital-erhaelt-positive-kritik\/\" target=\"_blank\">Balance sheet <\/a>This funding program, which has been in existence for three years, is being controversially discussed. Since May 2013, only about 23.6 million euros of the allocated 150 million euros have been drawn down. One problem appears to be the low awareness of the program.<\/p>\n<p>Hopefully, this will change: A whopping 97% of the surveyed supported investors and at least 64% of the supported startups would consider reapplying.<\/p>\n<p>Another positive aspect is that, for every euro of grant money, an average of \u20ac1.50 is invested additionally in a company by the investor. Furthermore, some Virgin Angels are actually venturing into the stock market:<\/p>\n<blockquote><p>&quot;One-fifth of the investors who benefit from INVEST are investing in a company for the first time. These investors often provide additional support beyond purely financial support, for example, by acting as advisors.&quot;<\/p><\/blockquote>\n<p>said Parliamentary State Secretary Brigitte Zypries. The stake in Virgin Angels is to be increased even further.<\/p>\n<p>The plan for the &quot;Invest&quot; program, starting in autumn 2016, is to double the eligible investment amount to \u20ac500,000 and introduce a tax-offset for capital gains. This could attract more &quot;newbie investors.&quot; Anyone interested in applying can find <a href=\"http:\/\/www.bmwi.de\/DE\/Themen\/Mittelstand\/Mittelstandsfinanzierung\/invest.html\" target=\"_blank\">here <\/a>further information.<\/p>\n<p>Overall, it remains to be seen how widely the various government incentives will be used. What experiences have you had with the various funding funds? We look forward to your feedback. <a href=\"mailto:redaktion@munich-startup.de\">redaktion@munich-startup.de<\/a>.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>More venture capital for German and European founders: The European venture capital instruments ERP\/EIF fund of funds and the European Angels Fund are in strong demand and have been increased by one billion euros to 2.7 billion euros, according to the German Federal Ministry for Economic Affairs and Energy. According to a recent report in the daily newspaper &quot;Die Welt,&quot; the German Federal Ministry of Finance is now also following suit: Together with KfW Bank...<\/p>","protected":false},"author":22,"featured_media":12966,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5633,1,5635],"tags":[1869,1868,52,70,1131,484],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Milliarden f\u00fcr staatlich gef\u00f6rdertes Wagniskapital - Munich Startup<\/title>\n<meta name=\"description\" content=\"Mehr Wagniskapital f\u00fcr Gr\u00fcnder: Wagniskapitalinstrumente wie der ERP\/EIF-Dachfonds, der European Angels Funds und &quot;INVEST&quot; unterst\u00fctzen Startups.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cms.munich-startup.net\/en\/12950\/subsidized-venture-capital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Milliarden f\u00fcr staatlich gef\u00f6rdertes Wagniskapital - Munich Startup\" \/>\n<meta property=\"og:description\" content=\"Mehr Wagniskapital f\u00fcr Gr\u00fcnder: Wagniskapitalinstrumente wie der ERP\/EIF-Dachfonds, der European Angels Funds und &quot;INVEST&quot; 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