Bavaria’s Minister of Economic Affairs Ilse Aigner officially launched the Growth Fund Bavaria The fund is 100 million euros solely from state funds and is expected to be co-invested by private venture capitalists up to 250 million euros in growth investments mobilize for Bavaria.
Aigner: “A unique example in Germany’s startup financing”
Aigner: "With the Bavarian Growth Fund, we are setting a unique example for Bavaria as a startup location and making a decisive contribution to ensuring that even more Bavarian startups become truly successful companies. Companies that we support with financing today secure the jobs of the future, future growth, and prosperity in Bavaria."
The Bavarian Ministry of Economic Affairs is providing €30 million in budgetary resources for the growth fund, which is operated as a state co-investment fund. The funds will be used to fund a liability fund that will serve as the basis for raising €100 million on the capital market. The liability fund will cover the interest on the capital raised, any potential default, and the administrative costs incurred by the growth fund.
Lead investor is required
Bavarian start-ups can apply to Bayern Kapital GmbH with the prospect of co-financing. The prerequisite for a government co-investment is that the startup has already found a lead investor who will invest at least the same amount of the potential government investment into the company.
The Bavarian Growth Fund, managed by Bayern Kapital GmbH, complements and expands the existing range of financing options for Bavarian founders. With financing amounts ranging from €2 million to €8 million per startup, the Bavarian Growth Fund is a key component of the Bavarian Ministry of Economic Affairs' startup initiative. “Start-up country Bavaria”.