Germany to invest €12 billion in startup innovations

BERLIN, Sept. 17 (Xinhua) — The German government and its partners have pledged to invest around 12 billion euros (13.3 billion U.S. dollars) in venture capital by 2030 to support young startups and their innovations, according to a joint declaration at the Startup Summit on Tuesday.

The declaration of intent, signed by the government, state development bank KfW and other companies, is part of an initiative to support startups and increase private investment and innovation capital in Germany.

German startups have long struggled to raise capital in their growth phase. The Federal Ministry of Finance has said that these companies, as the innovation engine of the German economy, need sufficient financing and sustainable structures to become competitive companies and contribute to employment, prosperity and long-term innovation in the country.

The German venture capital market is much smaller in international comparisons, Finance Minister Christian Lindner said. He noted that many German investors are cautious, which is why the new initiative is so important.

“The initiative aims to mobilise private investment in venture capital, start-ups and innovative technologies,” said German Chancellor Olaf Scholz, emphasising that the initiative will aim to strengthen Germany as a business location.

In the first six months of the year, 1,384 new startups were founded in Germany, an increase of 15 percent compared to the second half of last year. These companies currently employ more than 520,000 people. (1 euro = 1.11 US dollars)