Federal government and KfW initiate "RegioInnoGrowth" to support startups and SMEs
Marc Nemitz
| 16.08.2023
Federal government & KfW set impulse for innovation: With 'RegioInnoGrowth' startups & SMEs receive EUR 450 million, through regional adaptation & partnership with state development institutions.
Berlin - In a step to promote innovation and growth in the German economy, the German government and KfW signed an agreement for "RegioInnoGrowth" on August 14, 2023. This new component of the Future Fund aims to strengthen startups and medium-sized companies with equity and similar financing options.
With an allocation of up to EUR 450 million from the Future Fund and the ERP Special Fund, RegioInnoGrowth enables targeted support for startups and medium-sized companies that often have limited access to traditional venture capital financing.
Close cooperation with the state development institutes is intended to create a regional and adapted refinancing option. Companies have the opportunity to receive up to EUR 5 million, which can be provided as mezzanine capital or subordinated loans.
With RegioInnoGrowth, we are specifically promoting the innovation potential of start-ups and SMEs, which often have difficulty accessing venture capital. This underscores the implementation of our startup strategy.
Sven Giegold, State Secretary Federal Ministry for Economic Affairs and Climate Protection
The cooperation between KfW and the state promotional institutes enables financing options to be tailored to the needs of individual companies. This approach combines KfW's expertise in refinancing and structuring with the regional expertise of the state promotional institutes.
With RegioInnoGrowth, the federal government and KfW provide targeted support for start-ups and medium-sized companies that are often not the focus of conventional venture capital funds."
Dr. Florian Toncar, Parliamentary State Secretary of the Federal Ministry of Finance.
RegioInnoGrowth builds on the success of Pillar II of the Corona aid package for startups and SMEs, which facilitated over 1,800 financings with a KfW/federal share of around EUR 600 million.
The conclusion of the agreement between the federal government and KfW lays the foundation for the introduction of RegioInnoGrowth in Germany. The development of corresponding promotional products is now being actively pursued in the federal states in order to establish a regional offering for RegioInnoGrowth in a timely manner. KfW and the state promotional institutes will provide information on progress in due course.
This step underscores the German government's commitment to strengthening innovation potential in the state and creating a wide range of financing options for startups and SMEs. The combination of government support and private involvement is intended to help promote innovation and growth in the German economy.
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