Lower Saxony invests 50 million euros in start-ups
The federal state is focusing in particular on start-ups in the so-called greentech sector.
The state of Lower Saxony wants to expand its start-up funding and is investing a total of 50 million euros in five growth funds, each of which will be endowed with ten million euros. The money comes from the state-owned NBank, with further capital to come from private investors, according to a statement from the Ministry of Economic Affairs.
The money is primarily intended to help start-ups in the expansion phase that have high cash requirements. The first of what is expected to be five regional growth funds in Lower Saxony was founded in Osnabrück on August 9, 2022 with a high level of financial participation from the state. A contract was concluded with Scalehouse Capital Management GmbH from Osnabrück for this purpose. The Osnabrück fund will start with a volume of around 23 million euros and will primarily invest in start-ups in the fields of nutrition, agriculture and digitalization.
Jesse Jeng, Managing Partner of Scalehouse Capital, explains that most of the capital in Germany would be located in large cities and would therefore also produce successful start-ups. He continues: "However, it is not a law of nature that around 90 percent of the funds invested in start-ups in Germany flow into a few large conurbations."
Lower Saxony's Minister of Economic Affairs Bernd Althusmann is delighted that the 50 million euros are being invested in the future of the economy. He also described the launch of the growth fund in Osnabrück as a milestone for the start-up ecosystem in Lower Saxony and praised the cooperation to date: "The private sector initiators around Jesse Jeng have succeeded in attracting some of the most respected entrepreneurial personalities in western Lower Saxony to this joint venture between the state and the private sector. This will enable us to offer start-ups in Lower Saxony an attractive financing alternative to the growth funds from Berlin, Hamburg and Munich in the future."
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