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Industrie 4.0

KfW's startup financing is growing

More money for start-ups and young technology companies: UrosWith the new investment subsidiary KfW Capital, the public-law Kreditanstalt für Wiederaufbau (KfW) is investing 200 million euros annually.

29 Oct. 2018
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KfW's startup financing is growing (Photo: BMWi / Susanne Eriksson)

The founding of KfW Capital is a joint initiative of the Federal Ministry of Economics, the Treasury Department and the KfW. It invests in venture capital and venture debt funds to support young, innovative and fast-growing technology companies in Germany. Know-how is available: Since 2015, KfW has invested 265 million euros in 18 venture capital funds. Federal Minister of Economics Peter Altmaier (CDU) stated at the operational start of KfW Capital that there is "some pent-up demand" in the field of venture capital financing in Germany. According to his ministry, the supply gap is 500 to 600 million euros annually. The prerequisite for KfW Capital's investment in a fund is that the fund invest in German technology companies at least the amount KfW Capital has contributed.

Many companies in the industry have for some time been reserving money for innovative start-ups. For example, Evonik intends to invest a total of 100 million euros directly in start-ups or corresponding venture capital funds. Robert Bosch has founded its own venture capital GmbH. It's also about making money, "but primarily about securing Bosch's innovation leadership".