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Germany Creates EUR 450 Million Innovation Fund

The German national government and the state development bank KfW have agreed upon a new instrument, called “RegioInnoGrowth,” to finance innovative startups and SMEs.

It will direct EUR 450 million to spur growth smaller companies with great creative potential in future technologies. Firms will be eligible for up to EUR five million in support, for example in the form of mezzanine capital or subordinated debt. The money will come from the German “Future Fund” and the European Recovery Program.

“This will benefit precisely those firms that do not usually have access to venture capital,” said State Secretary Sven Giegold of the Ministry for Economic Affairs and Climate Action. “By using customized financing options, we are improving the situation for start-ups and innovative companies in Germany.”

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