On April 1, Federal Finance Minister Olaf Scholz announced a two billion euro aid package for startups. The package of measures has now been approved.
In recent weeks, the Federal Ministry for Economic Affairs and Energy and the Federal Ministry of Finance, together with KfW and KfW Capital, have finalised the details of the Package of measures worked out. Thomas Jarzombek, Startup Commissioner of the Federal Ministry for Economic Affairs and Energy, says:
"COVID-19 must not slow our highly innovative companies down on their growth path. That's why we've been working hard to ensure that the €2 billion package of measures is in place and can now soon be used by startups and small and medium-sized enterprises. This will secure jobs and innovation in Germany."
“The aid package for startups is ready”
Jörg Kukies, State Secretary in the Federal Ministry of Finance is quoted in a press release:
"Today there is good news for founders: The aid package for startups is in place. With the Startup Shield, the federal government is providing quick and effective support to this important growth sector, which employs many thousands of people in Germany. It's about helping young, innovative companies navigate the coronavirus crisis. We need the new and creative ideas of startups and young technology companies to get back on track after the crisis. It's clear that we are using taxpayer money wisely."
The package of measures is based on two pillars: Through the so-called Corona Matching Facility, existing cooperation with public partners such as KfW Capital and the European Investment Fund will be used to provide public funding to startups through venture capital funds. Startups that are not financed by venture capital firms and therefore do not have access to the Corona Matching Facility will receive assistance through the federal states and their companies.
The Business Angels Network Germany warns that "a patchwork of measures that is difficult to oversee and also quite uneven" could emerge if the second measure is exclusively linked to existing state programs. The organization has therefore proposed establishing a nationwide model and including business angels.
