BERLIN, Nov. 27, 2020 /PRNewswire/ -- Early on Friday, after a marathon 17-hour budgetary meeting, the German Bundestag approved a massive investment of state capital to promote start-ups in the country. The 2021 budget will see the government provide €2.4 billion via Germany's developmental bank, the KfW, and other channels to help new and growing companies scale up their activities.
The government has committed to investing a total of €10 billion between next year and 2030. It is hoped that this financial infusion will create an additional €20 billion in private venture capital investments.
"The Bundestag has created the necessary budgetary conditions for significantly improving the financing of start-ups in Germany," the president of the Federal Association of German Start-Ups, Christian Miele, told German business newspaper Handelsblatt.
Robert Hermann, the CEO of the German national economic promotion agency Germany Trade & Invest (GTAI) welcomed the parliament's decision.
"This is fantastic news," says Hermann. "Business advocates have long called for better access to domestic venture capital for young German companies – a need the governing German cabinet and parliament have now addressed. The allocation of such a large sum shows that amidst all of the economic disruption going on right now, there are significant positive changes as well. For innovative young companies, this could be a very good time to consider expanding to Germany."
Germany Trade & Invest (GTAI) is the economic development agency of the Federal Republic of Germany. GTAI supports German companies setting up in foreign markets, promotes Germany as a business location and assists foreign companies setting up in Germany.
Senior Manager, Communications
Germany Trade & Invest
SOURCE Germany Trade & Invest