The federal government will pump billions into start-ups

According to a newspaper report, the German government, together with partners from the financial sector, will invest money in German start-ups, in addition to an already announced improvement in framework conditions.

As part of the so-called “Win ​​Initiative,” the federal development bank KfW is to invest in newly founded companies together with Deutsche Bank, Commerzbank, DZ Bank, Allianz, Blackrock and the Bavarian Pension Fund, writes the “Handelsblatt” in its Monday edition, citing “government and financial circles.”

The “Win Initiative” will be presented on Tuesday by Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP). Private investors are expected to provide more than ten billion euros with KfW, insiders said. This will primarily go to innovative start-ups that are close to market maturity, so-called “scale-ups”. The final negotiations are currently ongoing, so the sum has not yet been finalized.

The “Win Initiative” not only includes joint financing, but a total of ten measures to strengthen the start-up sector. Among other things, the conditions for exits, including sales or IPOs of start-ups, as well as the tax framework for venture capital investments are to be improved. The initiative will also establish so-called secondaries. This involves a secondary market for existing shares in venture capital funds that are currently difficult to sell.

Government spokesman Steffen Hebestreit had already announced the new plan on Friday: “Start-ups strengthen our competitiveness and contribute to maintaining our prosperity; they are also an important and decisive factor in the transformation of our economy and society,” he told journalists in Berlin. +++