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In recent developments, the federal government, KfW, the financial sector, and players from the startup ecosystem have agreed on joint efforts to strengthen growth and innovation financing in Germany.
On September 17th, a joint declaration of intent was signed at the Startup Germany Summit, assuring a commitment to Germany as a financial centre and promoting startups, innovation, and venture capital in Germany.
Institutions that have signed the letter of intent include Allianz, AXA Germany, Barmenia.Gothaer, Bayerische Versorgungskammer, BlackRock, Bertelsmann, Federal Chancellery, Federal Ministry of Finance, Federal Ministry for Economic Affairs and Climate Protection, Federal Association of Venture Capital, and more.
To invest €12B by 2030
This alliance of businesses, associations, politics, and KfW aims to invest around €12B by 2030 to strengthen the German venture capital ecosystem further.
The signatories expect this to have a positive impact on Germany as a financial and economic location.
The contributions include direct investments in growth and innovation capital, financial support for the ecosystem beyond direct investments ( e.g. financial support for the establishment of startup factories ), and strengthening the ecosystem through structural contributions ( e.g. setting up and selling VC investment vehicles for suitable private individuals).
Federal Chancellor Olaf Scholz says, “The WIN initiative is really good news for our startups and Germany as a business location. It is intended to mobilise private investments in venture capital, startups, and innovative technologies. In this way, we will further strengthen the German venture capital market and the German business location as a whole.”
“Growth financing is crucial for the innovative strength of Germany and Europe. Strengthening our competitiveness and technological sovereignty is of key importance, especially in times of shifting geopolitical balances of power. We are particularly relying on young and dynamic companies as engines of innovation,” adds Scholz.
The WIN alliance of businesses, associations, politics, and KfW sees WIN as an ongoing initiative and will continue to work towards the goals set.
All actors involved in WIN want to jointly monitor the implementation of the measures and financial contributions.
To this end, KfW annually evaluates the implementation status of the defined measures and contributions received.
The initiative was launched at the suggestion of Federal Finance Minister Christian Lindner and is supported by Federal Chancellor Olaf Scholz and Federal Minister for Economic Affairs and Climate Protection Dr. Robert Habeck. KfW, with its Chairman of the Board Stefan Wintels, plays a central role as coordinator and pioneer of the initiative.
Federal Minister of Finance Christian Lindner says, “The commitments made by business show that there is a willingness to invest. It is up to us to create the right framework conditions for the economic turnaround to happen. We will only create additional growth if we succeed in mobilising more private capital. What we do not need are ever new subsidies and economic decisions driven by politics. What Germany needs instead are companies that can compete in the market economy with innovations. Which company, which technology, and which sector has a future should remain a matter for consumers, entrepreneurs, and investors.”
“I am all the more pleased that a broad alliance of business, associations, KfW, and politics is working together in a spirit of trust within the framework of the WIN initiative. We must not let up now and must work towards freeing start-ups even more than before from too much bureaucracy and other unnecessary burdens” adds Lindner.
KfW CEO Stefan Wintels says, “We need around €30B annually for innovation financing in Germany. It is therefore important that we attract additional private investors to finance young companies in addition to state capital. This is where the WIN initiative comes in. It is great proof that key players can work together to increase Germany’s attractiveness as a business location.”
“For the first time, leading financial companies, associations, politicians, and other stakeholders have joined forces under one roof to strengthen the ecosystem around growth and innovation financing along 10 key fields of action. I am very proud that KfW can make a significant contribution to this,” adds Wintels.