The FINANCIAL – KfW provides a total of EUR 50 million annually for joint financing with private lenders.
In the first five years, the German Federal Government will assume 95% hedging of the resulting risks.
Within the scope of the “Tech Growth Fund Initiative”, KfW and the German Federal Government are expanding the range of growth financing on offer in Germany with a new financing instrument: KfW's Venture Tech Growth Financing programme now provides loans to technologically innovative and rapidly growing companies with a resilient and promising business model to finance their further growth. KfW provides a total of EUR 50 million every year under the programme, which is set to run for at least five years. In the first five years, 95% of the resulting risks will be hedged by the federal budget. The new loan programme, as an integral part of the start-up campaign, augments the equity business of the subsidiary KfW Capital, which was established in autumn 2018 and focuses on fund investments.
“As part of the start-up campaign, Federal Minister Altmaier has announced that more venture capital will be made available for start-ups. This is now happening with the kick-off of the KfW “Venture Tech Growth Financing” programme. Our hope is that this will stimulate the venture debt market, which is still very weak in Germany. This market segment is an important building block in a functioning venture capital market and ensures that sufficient financing is available to innovative companies at all stages of their development.”