The German government is supplementing its existing uncapped aid for businesses to survive the ongoing coronavirus crisis with € 2 billion directed specifically at the country’s startups.
The government will support venture capital investors who make funds available to creative fledgling firms.
Commenting on the aid package, Germany Minister of Economic Affairs and Energy Peter Altmaier said on Wednesday, April 1: “Classic credit instruments are often a poor fit for young, innovative companies.” “For this reason we are offering a tailor-made support package.”
“With this two-billion-euro aid package, we are ensuring that this innovative growth sector with its many thousands of jobs gets through the crisis in good shape,” said Finance Minister Olaf Scholz.
The initiative also aims to enable the umbrella funds KfW Capital from Germany’s national development bank and the EU’s European Investment Fund (EIF) to use public funds to replace money withdrawn by other investment funds.
In addition, the German Economics Ministry hopes the measure will give startups and other small firms without venture capital support access to it for the first time.
FinSMEs
01/04/2020