Young, innovative companies play an important role in opening up new growth markets, modernizing the economy and strengthening Germany's innovation and competitiveness - especially in times of ongoing digital transformation. These companies in particular often have difficulty raising capital when it comes to turning their new ideas into marketable products, services and business models. Traditional debt financing via banks is usually denied to them. Access to sufficient equity capital, especially in the form of venture financing, is therefore a crucial success factor for the establishment, growth and success of these start-ups.

The government coalition has therefore set itself the goal of making Germany even more competitive internationally as an investment location for venture capital and further improving the legal and tax framework for venture capital. The German government has already launched numerous measures in this legislative period, most of which have already been implemented. These include the expansion as well as the topping up of established federal funding programs (e.g. EXIST, ERP/EIF fund of funds, INVEST, High-Tech Gründerfonds III) as well as the launch of new public financing instruments (e.g. the co-investment fund coparion with KfW and the ERP/EIF Growth Facility with the European Investment Fund). This means that a total of around two billion euros in additional public funds will be available in the coming years.

In addition, the German government is currently examining further measures to strengthen venture financing for start-ups. Together with KfW, it is working on a concept for a large-volume fund from which eligible companies in the growth phase can obtain venture debt for their follow-up financing.