The Federal Ministry for Economic Affairs and Energy (BMWi), the European Investment Fund (EIF) and the Kreditanstalt für Wiederaufbau (KfW) today announced the launch of two new financial instruments designed to simplify access to venture capital for startups: “coparion” and the ERP/EIF Growth Facility.
Coparion is aimed at startups and companies in their early growth phase. The fund has a volume of €225 million. The second instrument, the ERP/EIF Growth Facility, supports companies in their growth phase with a total of up to €500 million. Both funding pools require the same amount of private investment.
Federal Minister for Economic Affairs Gabriel explains:
“Our startups receive a lot of international attentionBut the German venture capital market is still too small relative to our economic strength. We therefore need to improve the framework conditions and make our location more attractive for venture capital."
The co-investment fund coparion could be particularly interesting for startups: This fund will invest directly in innovative startups and young technology companies in the form of a separate company. Involvement of private lead investors should be a Leverage and thus achieved a fund volume totaling around 450 million euros can be achieved. KfW Board member Dr. Ingrid Hengster explains:
"coparion supports innovative startups and young technology companies with venture capital – close to the market, quickly and flexibly. In cooperation with all market players, the co-investment fund 'doubles' private capital. This provides an important impetus for the further development of the venture capital market and for the Strengthening Germany as a location for start-ups and innovation.“
Further information on how the two instruments work can be found at the BMWi.
