The German government has promised to provide “tailor-made” support for start-ups in the corona crisis. The existing support programme is to be supplemented by a package of measures for start-ups. Start-ups in Germany already have unrestricted access to the support measures of the corona aid package. However, the classic credit instruments in particular are often not suited to the needs of young start-ups.
The package of measures, which has now been announced by Federal Finance Minister Scholz, is intended to cover the following elements in particular.
- Public venture capital investors at fund of funds and fund level (e.g. KfW Capital, European Investment Fund, High-Tech Gründerfonds, coparion) are to be provided with additional public funds in the short term, which can be used for financing rounds of start-ups in the framework of co-investment together with private investors.
- The fund of funds investors KfW Capital and the European Investment Fund (EIF) are to be put in a position to take over shares from defaulting fund investors with additional public funds.
- For young start-ups without venture capitalists among the shareholders and small SMEs, financing with venture capital and equity substitutes is to be made easier.
The individual measures are to be implemented gradually.