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Boosting Startup Financing in Germany
2024-09-18 05:40:08
Business
Economy
Finance

Boosting Startup Financing in Germany

Image used under license from Shutterstock.com

The German government is making strides in enhancing startup financing, with a commitment to mobilize 12 billion euros in venture capital by 2030. Key players like Allianz, Commerzbank, Deutsche Bank, and Blackrock are on board, alongside support from Chancellor Olaf Scholz and Finance Minister Christian Lindner.

However, concerns about bureaucratic hurdles persist, as voiced by Roux from French Tech Berlin, who urges a significant increase in investment to address a critical 30 billion euro financing gap. This initiative aims to bolster innovation and prevent the potential loss of value due to overseas IPOs.

Furthermore, Minister Robert Habeck is actively engaging with struggling companies like Meyer Werft and Volkswagen, emphasizing the need for future-oriented strategies in the region.

Related news on that topic:

Boosting German Start-Ups With Billions in Venture Capital

Germany is set to bolster its start-up ecosystem with a massive infusion of 12 billion euros by 2030. This initiative, supported by the traffic light coalition and major financial players like banks, insurance companies, and asset managers, aims to enhance structures and increase venture capital for start-ups. Federal Finance Minister Christian Lindner sees promising investment willingness but cautions against excessive state interventions. KfW CEO Wintels emphasizes the need for more private investors, noting that 30 billion euros annually are essential for innovation financing. The Digital Association Bitkom hails the initiative as a crucial step to strengthen international competitiveness, as only 20% of start-ups currently find sufficient venture capital, and 80% witness growing investor reluctance. Prominent companies like Allianz, Commerzbank, and Deutsche Bank are among those committed to this investment. The move, backed by Chancellor Olaf Scholz and Economy Minister Robert Habeck, aims to reduce investment barriers and mobilize private funds for innovative technologies. The Start-up Association calls for tripling venture capital investments by 2030 to close an annual financing gap of around 30 billion euros, addressing the significant value loss as numerous young firms opt for overseas IPOs.

Challenges Loom for Germany's Metal and Electrical Industry

The metal and electrical industry in Germany, particularly in the Lower Rhine region, is facing a turbulent future. Geoffery Weisner from the Krefeld Entrepreneurs' Association highlights a significant downturn, with the ifo Business Climate Index showing a decline in both business situation and expectations by over 2%. Factors such as high costs and bureaucracy are pushing companies to consider investing abroad. Additionally, there's a rising need for guidance on short-time work and personnel reductions due to structural problems. The industry in Baden-Württemberg is also in turmoil, with stalled wage negotiations threatening to lead to strikes. Employees, despite recent profitability, are demanding significant pay raises, especially with the looming shift to electromobility. The ZEW Index further reflects declining economic expectations within Germany and the Eurozone, exacerbating uncertainties in sectors like automotive and steel. SPD leader Klingbeil argues that lifting the debt brake is crucial for bolstering the industry's competitiveness, emphasizing investments in green technologies, electromobility, and infrastructure. He criticizes current industrial policies and calls for swift action to support steel manufacturers and related sectors. As these challenges converge, the future of Germany's metal and electrical industry remains uncertain and fraught with potential upheavals.

Read 1 more recent news on this topic

The press radar on this topic:

n-tv.de
17. September 2024 um 18:46

More venture capital: Startups receive financial boost from the economy - n-tv.de

Economy
Finance
Companies like Allianz, Commerzbank, Deutsche Bank, Blackrock, Deutsche Börse, Telekom and Henkel want to invest around 12 billion euros in venture capital by 2030 to mobilize private investments in startups and innovation technologies. Chancellor Olaf Scholz and Federal Finance Minister Christian Lindner see this as a "really good news" for German startups and the location Germany. Federal Minister of Economics Robert Habeck wants to remove investment barriers. Ralf Wintergerst, President of..
mdr
17. September 2024 um 16:42

Habeck Sees Progress in Start-up Financing

Economy
Finance
Politics
Habeck (Greens) sees progress in start-up financing; the federal government, KfW, companies like Allianz, Commerzbank, Deutsche Bank, and Blackrock plan to invest 12 billion euros in venture capital by 2030; Scholz (SPD) and Lindner (FDP) welcome this; Roux (French Tech Berlin) criticizes bureaucracy; the association demands a tripling of investments to close the financing gap of 30 billion euros and to prevent value creation losses due to IPOs abroad.
gmx
18. September 2024 um 01:32

Habeck back on company tour - Minister visits Meyer Werft

Economy
Politics
Federal Minister of Economics Robert Habeck is visiting companies in North Rhine-Westphalia and Lower Saxony to discuss their future orientation. The focus is on the crisis-ridden Meyer Werft in Papenburg, for which the federal government and the state of Lower Saxony have decided on state aid. A plant visit to Volkswagen, Europe's largest automaker, in Emden is also planned, where plant closures and operational terminations are not ruled out.
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