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2021: German government creates €10 billion fund to invest in start-ups in early stages

At the end of June 2021, the German government announced the creation of an investment fund worth 10 billion euros to support technology startups inside the country. The new fund will focus on financing developers at an early stage of growth, but with high capital requirements.

According to German Economy Minister Peter Altmaier, "startups are engines of structural changes in the economy."

The German government has formed a fund for 10 billion euros to invest in startups in the early stages

They create jobs and provide the basis for future prosperity and growth in Germany and Europe. This is a unique phenomenon for Europe, as well as a significant contribution compared to other countries, "Altmaier noted.

The German ministry also noted that they will not limit themselves to 10 billion euros and in the near future will increase the capital of the fund.

Moreover, Peter Altmaier also said that the government will also work with the private sector and that in total it is planned to attract at least 30 billion euros to support startups with venture capital.

In combination with our existing financial instruments, we will be able to provide more than 50 billion euros of venture capital for startups in the next few years together with private investors, the minister added.

According to the British consulting company Ernst & Young, during 2020, startups from Germany raised a total of approximately $4.5 billion. The bulk of this money was received by three companies - the manufacturer of eVTOL devices for Lilium air taxi services, the Omio travel service and the developer of N26 financial technologies. This is a significant indicator for European countries, but small compared to the United States, where startups raised $156.2 billion in 2020. German developers receive most of the capital from foreign funds, mainly from North America.^[1]

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