The German federal government and KfW have signed a contract to launch RegioInnoGrowth. The federal government is thus implementing another measure named in its startup strategy to strengthen innovative companies and supplements the promotion of future technologies under the Future Fund. The federal government is providing up to 450 million euros from the Future Fund and the ERP special assets for this purpose.
RegioInnoGrowth aims to enable regionally tailored financing solutions through cooperation with state development banks. This also includes the involvement of private investors such as business angels or family offices. The federal government assumes up to 70 percent of the risks, with the remaining shares held by the states and possibly private investors. Companies can each receive up to five million euros, which can be provided, for example, in the form of mezzanine capital or subordinated loans.
RegioInnoGrowth thus builds on the model of the second pillar of the federal government’s corona relief package for startups and mid-sized companies, which ended in mid-2022.
“Improved framework conditions for startups”
State Secretary at the Bundesministerium für Wirtschaft und Klimaschutz Sven Giegold says:
“With RegioInnoGrowth, we are promoting the innovation potential of startups and growth-oriented smaller mid-sized companies. Companies that otherwise have little access to venture capital benefit in particular. The federal government is consistently implementing its startup strategy. Through tailor-made financing offers, we are improving the framework conditions for startups and innovative companies in Germany.”
Katharina Herrmann, member of the KfW board of directors, adds:
“The transformation into a sustainable, innovation-driven and resilient Germany is gaining momentum. It is significantly driven by startups and innovative mid-sized companies that need a solid capital base for further growth. RegioInnoGrowth complements the financing landscape for innovative companies with an important federal component. Germany has a unique support system in which KfW and state development banks work closely together with their regional expertise. This provides ideal conditions to strengthen the spirit of invention in Germany.”
