The European Investment Bank provides the Free State’s development agency with additional venture capital for start-up funding. The Ministry of Economic Affairs announced on Monday. Accordingly, 50 million euros from European financial pots will flow into the so-called growth fund Bavaria 2, WFB 2 for short. The money is intended to support technology-driven start-ups in a targeted manner. The aim is to offer “courageous founders with promising ideas the best possible framework for growth and success,” said State Secretary for Economic Affairs Roland Weigert (Free Voters). As “innovation drivers” they strengthened competitiveness. Thanks to European support, the fund’s resources will rise to 165 million euros; Bayern Kapital GmbH, a wholly-owned subsidiary of the LfA Landesförderanstalt Bayern, will be responsible for its management in the future.
In simple terms, the WFB 2 participates in young companies. In this way, they receive capital, ideally to finance their growth. According to the Ministry of Economic Affairs, the first beneficiaries of the additional funds include three start-ups: two from the state capital, one from Swabia. In Augsburg, German Bionic Systems is working on robotic exoskeletons. These “exoskeletons” or power suits can be worn like backpacks and are supposed to support human muscle strength – and help people to prevent complaints from hard physical work. The Munich companies are working on the development of a satellite-based early detection system for forest fires (Ororatech) and with digital services for financial advisors for customer advice and management (Wealthpilot).
The state government announced last year that it wanted to expand start-up funding. But in the course of the corona crisis, founders repeatedly complained about a lack of support. Young companies have little chance of obtaining bank loans; at the same time, investors held back with new commitments for a long time. According to a survey by the digital association Bitkom, around three quarters of the German start-ups surveyed will need fresh capital in the next two years. 86 percent stated that they had not yet secured the financing. In general, access to venture capital in Germany is more difficult than, for example, in the USA – also because there is a lack of investors in this country.