Saxony increases Corona aid fund

The federal state is providing 40 million euros. Saxony is also increasing the possible funding amount per start-up to two million euros.

Some start-ups are benefiting from the changes brought about by the coronavirus pandemic, while others are experiencing massive difficulties. The federal and state governments are supporting them with funds and the provision of capital - including Saxony. The federal state has now increased its Corona Start-up Aid Fund (CSH) to 40 million euros and also raised the amount of funding per start-up to two million euros. What's more, the funding is being extended and can be applied for until the end of this year.

The CSH was launched in August 2020 with a volume of over 30 million euros; to date, 36.4 million euros have been paid out to start-ups in 81 investments in Saxony. "The large number of start-up teams that have taken advantage of the CSH's financing offer shows how diverse the start-up culture in Saxony now is. A new generation of crisis-tested entrepreneurs is growing up who want to make a difference locally," says Saxony's Minister of Economic Affairs Martin Dulig. The money from the CSH comes from the federal government and the Kreditanstalt für Wiederaufbau (KfW) as well as the Free State of Saxony and the Sächsische Aufbaubank. Mittelständische Beteiligungsgesellschaft Sachsen (MBG) also participates and manages the fund. To date, it has received 135 inquiries from start-ups.

"Young companies in Saxony are particularly vulnerable in times of pandemic because, unlike established companies, they cannot draw on capital reserves that have grown over several years," says MBG Managing Director Markus H. Michalow, explaining the need for support. The fund is aimed at knowledge-based, technology-oriented start-ups across all sectors and makes silent equity and quasi-equity investments.