EIF and BMWi launch new instrument to raise more venture capital in Germany

A EUR 500m ERP-EIF Growth Facility was launched today, to boost venture capital support for start-up and early growth phase companies in Germany.

The new Growth Facility targets rapidly growing companies with a high demand for equity. This EUR 500m facility will provide successful venture capital funds and fund managers with the means to refinance the co-investment funds which they manage. This can be used to provide fast-growing innovative German firms with up to EUR 20m. As a result, private-sector investment is likely to reach at least EUR 1bn.

EIF Chief Executive Gilibert on the ERP-EIF Growth Facility said: “The EUR 500m Growth Facility will greatly help fast-growing firms to develop new markets in Germany and Europe. Since 2004, we have invested in more than 50 German and European venture capital funds together with the ERP Special Fund. These fund investments have mobilised EUR 5.2bn for young and growing innovative companies.”

Federal Minister for Economic Affairs and Energy Sigmar Gabriel and KfW board member Dr Ingrid Hengster also launched a new “coparion” fund totalling EUR 225m, aimed at companies in start-up and early growth phases.

Minister Gabriel said: “Entrepreneurs put new ideas into practice and create jobs. Our start-ups attract a lot of attention in the rest of the world, but Germany’s venture capital market is still too small in comparison with the strength of our economy. We therefore need to improve the policy environment and make our country more attractive for venture capital. Companies need it if they are to be able to launch their innovative technologies on the market. This is why we have teamed up with the EIF and KfW and set out on a new path. Together we want to broaden the range of funding instruments and mobilise more private equity.”

KfW board member Dr Ingrid Hengster on the coparion co-investment fund commented: “coparion supports innovative start-ups and young technology companies with venture capital – close to the market, fast and flexible. The co-investment fund “doubles” private capital in cooperation with all the market players. This will give a key boost to the further development of the venture capital market and to strengthening start-up activities and innovation in Germany.”

Additional information on the ERP/EIF Growth Facility

Federal Ministry for Economic Affairs and Energy Press Release

Contacts

EIF:
David Yormesor
Press officer
Tel. +352 22 48 58 13 46
Email: YORMESOR@eib.org

BMWi:
Tobias Dünow
Press officer
Tel. +30 18 615-6130
Email: buero-lb@bmwi.bund.de