EIB gives EUR 50 million to Bavarian start-ups

Bayern Kapital receives support from Luxembourg. The European Investment Bank is increasing the fund volume of the state development bank.

The Luxembourg-based European Investment Bank (EIB) is injecting 50 million euros into the Bayern 2 growth fund, which was previously funded exclusively by the Landesförderbank Bayern and Bayern Kapital. This brings the venture capital fund to a total of euro 165 million. "With the additional 50 million euro from the EIB for the Bavaria 2 Growth Fund, we are specifically advancing even more Bavarian start-ups with highly innovative business models", Bavaria's State Secretary for Economic Affairs, Roland Weigert, said of the deal. "But the EIB's entry is also a clear commitment to Bavaria as a business location."

"The EIB, with the support of the Investment Plan for Europe, is primarily promoting investments that strengthen the competitiveness of the economy in Europe. This is particularly true in these economically difficult times of the Covid 19 pandemic", said Ambroise Fayolle, Vice-President responsible for the EIB's activities in Germany. The fund will primarily finance start-ups in robotics, space, life sciences and fintechs. Most recently, the Bavaria 2 Growth Fund took a stake in Orora Technologies, which is developing small satellites for the early detection of forest fires.

The first Bavarian fund was launched in 2015 and invested 71 million euros in 23 Bavarian start-ups. Its successor launched last year. In addition to state money, the fund also attracts private investors who additionally invest in the start-ups.