The LfA Förderbank Bayern and the European Investment Fund (EIF) provide financial support to Bavarian startups through the LfA-EIF Facility. The fund of funds is now being increased to €200 million.
The venture capital fund has been investing in Bavaria since 2009. Its goal is to improve the state's venture capital offering for small and medium-sized technology companies. Both partners are now increasing their financial commitment to the fund of funds by €25 million each, bringing the total to €200 million. EIF Managing Director Pier Luigi Gilibert, says:
"The EIF is delighted to further expand its commitment to the LfA-EIF Facility to support SMEs in Bavaria. The LfA-EIF Facility invests in VC funds to facilitate access to finance for companies. Our commitment will further contribute to facilitating the financing of companies by existing and new fund managers."
3 billion euros in additional capital from third-party investors
Bavaria's Minister of Economic Affairs and Chairman of the LfA Administrative Board Franz Josef Pschierer commented:
“Access to venture capital is an important prerequisite for economic success, especially for young, technology-oriented companies.”
By increasing the Bavarian-European umbrella fund, the Bavarian development bank is creating sustainable incentives to attract more venture capital to Bavaria, said Pschierer. This will strengthen the Bavarian venture capital landscape, improve financing opportunities for innovative startups, and stimulate growth in the region. Dr. Otto Beierl, Chairman of the Board of LfA, adds:
"Our cooperation with the EIF for more venture capital in Bavaria has been a great success. Through our investments in the EIF's fund of funds, we have so far raised around €3 billion in additional capital from third-party investors."
According to Beierl, a multiple of the funds invested will flow back to Bavarian high-tech founders in the form of equity capital.
