The German government and private investors pledged Tuesday to work together to pour billions of euros into funding for start-ups over the coming years, in a bid to keep young companies from moving abroad.
Under a new programme dubbed the “WIN” initiative, Berlin secured financing pledges of up to 12 billion euros ($13 billion) by 2030 from investors to support the start-up environment in Europe’s largest economy.
The declaration — signed by the government, public lender KfW, business groups and companies such as Allianz, Commerzbank and Deutsche Bank — pledges to make it easier for start-ups to get the funding injections they need to grow their business.
Start-ups need “better financing options” so they can scale up in Germany and Europe instead of having to relocate to places like the United States to raise capital, Chancellor Olaf Scholz said.
The German initiative will “mobilise private investment in venture capital, start-ups and innovation technologies”, Scholz said.
“Strengthening our competitiveness and technological sovereignty is of central importance” at a time of shifting geopolitical relationships, he added.
Finance Minister Christian Lindner said the government had to create the right conditions for companies to thrive, without resorting to “ever more subsidies”.
“Only if we succeed in mobilising more private capital will we create additional growth,” he said.
Nearly 1,400 start-ups were founded in Germany in the first half of 2024, a 15-percent increase on the preceding six months, according to government figures.
The German scheme is similar to the “Tibi” initiative launched in France in 2019 to boost financing for tech start-ups.
Add Comment