The European Investment Bank (EIB) is participating in the Coparion investment fund. With the EU institution's accession, the fund's volume increases to EUR 275 million.
The EIB’s EUR 50 million investment is made possible by the European Fund for Strategic Investments (EFSI), a joint project between the EIB and the European Commission. Matthias Machnig, State Secretary in the Federal Ministry for Economic Affairs and Energy, says the EIB's involvement shows that the Coparion fund was founded in 2016 on the right path. The EIB also sees potential in the German venture capital market.
"Nevertheless, the German venture capital market is still too small compared to our economic strength. Founders need attractive framework conditions. This naturally includes an attractive market for venture capital. This secures long-term jobs and prosperity in Germany."
KfW Board Member Dr. Ingrid Hengster says that his company has been supporting young, growth-oriented technology companies with capital on their growth path for many years:
"To this end, we are continuously developing our financing approaches. With the founding and our participation in Coparion two years ago, we placed our successful co-investment approach on a new, market-oriented foundation. We are pleased that this foundation will be further strengthened with the EIB as a new, strong European partner."
Coparion an “important, worthy project”
The EIB Vice-President responsible for EFSI and operations in Germany Ambroise Fayolle sees the European venture capital market as significantly weaker than the US. This makes raising capital particularly difficult for young technology companies. Fayolle continues:
"I therefore expressly welcome the close cooperation with the BMWi, BMF, and KfW, which has led to our first involvement in the German venture capital sector. Supporting young, innovative growth companies is one of the EU bank's priorities, because access to financing, especially for higher-risk projects, is crucial to closing the investment gap in Europe and staying ahead of the international competition."
Also Jyrki Katainen, Vice-President of the European Commission responsible for Jobs, Growth, Investment and Competitiveness, sees an urgent need for venture capital in the EU:
"Today's news is therefore very welcome: €275 million is an impressive seed capital! We must provide early-stage companies with access to financing and thus help them stay in the EU. I am proud that the European Fund for Strategic Investments, in cooperation with the German government and the European Investment Bank, is supporting such an important, worthy project."
