Hessen Kapital I receives 51 million euros in additional funding for start-ups and SMEs

The Hessen Kapital I fund is being expanded by 51 million euros to strengthen and promote Hessen's economy through targeted investments in ecological, digital and social innovations.

Hesse is strengthening its support for start-ups and SMEs by increasing the Hessen Kapital I investment fund by an impressive 51 million euros. This was announced by Economics Minister Tarek Al-Wazir and Finance Minister Michael Boddenberg in a press release on Tuesday.

The funds, which come from the federal "RegioInnoGrowth" program, will enable the fund to be expanded to up to 73 million euros over the next three years. This considerable sum will flow specifically into young innovative companies that focus on ecological, digital or social innovations. Medium-sized companies with clear innovation and growth targets will also benefit.

Young, dynamic companies are indispensable for a vital economy. That is why we want to offer them optimal conditions in Hesse. The additional funds from RegioInnoGrowth will enable us to expand our offerings and provide further impetus for the economic development of Hessen.

Tarek Al-Wazir, Hesse Minister of Economic Affairs

The "RegioInnoGrowth" program, which was only launched in August, is aimed specifically at innovative companies and SMEs that are geared towards growth and have an innovative business model with a turnover of up to 75 million euros per year.

Support since 2007

Since 2007, the Hessen Kapital I fund has been supporting companies at all stages of development by promoting innovation and growth projects with silent and direct investments of between 0.2 and 5.0 million euros. Successful investments already include companies such as BRAIN Biotech AG, the FinTech CAPTIQ, IOT Venture and the software start-up Ankaadia. The fund is managed by bmh Beteiligungs-Managementgesellschaft Hessen.

Finance Minister Michael Boddenberg emphasized that the combination of state support and private participation is a promising model. The Hessen Kapital I fund is an effective instrument for supporting companies that would otherwise have little access to venture capital.

The support provided by "RegioInnoGrowth" is seen as an expression of trust in the innovative strength of Hessian companies, from which not only the companies themselves benefit, but also the entire economic region of Hesse. This is emphasized by both Jürgen Zabel and Dr. Steffen Huth, Managing Director of the bmh. The allocation of funds demonstrates a clear commitment to supporting start-ups and innovative SMEs in their growth through alternative financing channels and thus promoting the economic diversity and strength of Hessen.