At the end of June 2021, the German government announced the creation of an investment fund for 10 billion euros to support technology start-ups within the country. The new fund will focus on financing developers in the early stages of growth, but with high capital requirements.
According to the Minister of Economics of Germany, Peter Altmaier (Peter Altmaier), "startups are the engines of structural changes in the economy. "They create jobs and provide the foundation for future prosperity and growth in Germany and Europe. This is a unique phenomenon for Europe, as well as a significant contribution compared to other countries, - said Altmaier.»
The German Ministry also noted that they will not be limited to 10 billion euros and will increase the capital of the fund in the near future.
Moreover, Peter Altmaier also stated that the government will also work with the private sector and that in total it is planned to raise at least 30 billion euros to support venture capital startups.
“Combined with our existing financial instruments, we will be able to provide more than 50 billion euros of venture capital for start-ups in the next few years, together with private investors,” the minister added.
According to British consulting firm Ernst & Young, during 2020 startups from Germany raised a total of approximately $4.5 billion. The bulk of this money was received by three companies - the manufacturer of eVTOL devices for air taxi services Lilium, the travel service Omio and the developer of financial technologies N26. This is a significant figure for European countries, but small compared to the US, where startups raised $156.2 billion in 2020. German developers receive most of the capital from foreign funds, mainly from North America.