Germany pledges billions to boost startups
FRANKFURT — The German government and private investors pledged Tuesday to work together to pour billions of euros into funding for startups over the coming years, in a bid to keep young companies from moving abroad.
Under a new program dubbed the “WIN” initiative, Berlin secured financing pledges of up to 12 billion euros ($13 billion) by 2030 from investors to support the startup environment in Europe’s largest economy.
The declaration — signed by the government, public lender KfW, business groups and companies such as Allianz, Commerzbank and Deutsche Bank — pledges to make it easier for startups to get the funding injections they need to grow their business.
Startups need “better financing options” so they can scale up in Germany and Europe instead of having to relocate to places like the United States to raise capital, Chancellor Olaf Scholz said.
The German initiative will “mobilize private investment in venture capital, start-ups and innovation technologies,” Scholz said.
“Strengthening our competitiveness and technological sovereignty is of central importance” at a time of shifting geopolitical relationships, he added.
Finance Minister Christian Lindner said the government had to create the right conditions for companies to thrive, without resorting to “ever more subsidies.”
“Only if we succeed in mobilizing more private capital will we create additional growth,” he said.
Nearly 1,400 startups were founded in Germany in the first half of 2024, a 15-percent increase on the preceding six months, according to government figures.
The German scheme is similar to the “Tibi” initiative launched in France in 2019 to boost financing for tech startups.
